September 2023 Housing Update

The housing market in Bergen County is expected to remain strong in September 2023, but there are some signs that the market is starting to cool as is the case every fall. High home prices, rising mortgage rates, and low inventory levels are making it more difficult for buyers to purchase a home. However, the housing market is still a seller's market, and buyers who are prepared to act quickly and make a competitive offer are still likely to be successful since a lot of their competition has decided to put their search on hold.

Home prices are expected to remain high, but the pace of appreciation is likely to slow. The median home price in Bergen County was $653,000 in July 2023. However, the pace of appreciation is likely to slow as mortgage rates continue to rise and inventory levels remain low.

Inventory levels are expected to remain low, which will continue to put pressure on prices. The number of homes for sale in Bergen County was down 6.4% in July 2023 compared to last year. This is due to a number of factors, including low interest rates, strong demand from buyers, and limited new construction.

Mortgage rates are expected to remain elevated, which will make it more expensive for buyers to finance a home purchase. The 30-year fixed-mortgage rate averaged 7.23% in August 2023, and it is expected to remain above 7% in September. This will make it more difficult for buyers to afford a home, especially those with a limited budget.

Investor activity is expected to decline, as investors find it more difficult to find homes with attractive cap rates. A cap rate is the annual income a property produces divided by its purchase price. Investors typically look for cap rates of 8% or higher, but these are becoming increasingly difficult to find in Bergen County.

The housing market is expected to remain competitive, but it may become less so as the year progresses. The housing market in Bergen County is still a seller's market, but the competition is expected to ease as the year progresses and the economy slows down.