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2024 NJ Housing Forecast

Performance Property Real Estate Question

Q: What do you think is going to happen in real estate in 2024? Emily, Englewood, NJ

A: Happy New Year! The economy continues to outperform expectations. Construction costs are finally falling, economic growth is strong. Consumer spending has been trending up for a long time, CPI is down almost 60% from where it was in mid 2022. Home sales have been going down for some time due to higher mortgage interest rates and less available home inventory due in large part to less trade-up transactions (when a homeowner sells a home and then buys a more expensive home). After double digit NJ home price increases in 2020 and 2021, home prices increases have slowed in 2022 and 2023 and NJ home prices may fall 3-5% this year. I am expecting interest rates to fall & home inventory to open up as lower interest rates unlock trade-up activity and more Millennials enter the housing market. Thanks for your question, Emily.

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