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home prices

Performance Property Real Estate Question

How Insurance Deserts Will Affect Home Prices

Q: My cousin in California is having trouble getting homeowners insurance I guess because of wildfires out there. Do you think that will affect the real estate market out there? Janet, Southern Shores, North Carolina A: Insurers have experienced record losses recently due to catastrophic damage from natural disasters like wildfires and storms. Climate change has made risk assessment more difficult for insurance companies which results in much higher insurance premiums and limits insurance choices for homeowners. When insurers can’t accurately quantify a risk, they charge a higher premium to create a financial cushion. Insurance premiums have outpaced inflation in recent years due in large measure because reinsurers (the insurers who insure insurance companies) have raised their insurance premiums. In […]

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Real Estate Insight

The Number Of Homes On The Market In NJ Is 35% Lower Than Last Year

The number of homes on the market in NJ is 35% lower than last year which is continuing to push home prices higher.

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Real Estate Insight

The Number Of Homes On The Market In NJ Is 36% Lower

The number of homes on the market in NJ is 36% lower than last year which is continuing to push home prices higher.

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Performance Property Real Estate Question

How Far Will Home Prices Fall

Q: How far do you think home prices will fall? Manny, Jersey City, NJ A: Every local real estate market is different. Home prices at any given point in time may be rising in one local market, stabilizing in another market and falling in another market. Even during the housing bubble that occurred in the early and mid 2000s after the dot com bust, there were local real estate markets where home prices were declining! There are certain real estate markets that in recent history have tended to have more home price volatility (i.e. Phoenix, Vegas, Bay Area)–I suspect home prices move more dramatically in these markets because they attract more out of town speculators. Many of the local markets […]

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Real Estate Insight

Home Prices In Q1 2023 Fell

Home prices in Q1 2023 fell in more parts of the US than they have in over a decade with a third of metro areas posting annual price declines.

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Real Estate Insight

Home Prices Fell In September From August

Home prices fell in September from August, the first time prices have declined for 3 straight months in nearly 4 years.

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Performance Property Real Estate Question

How Far Will Home Prices Go Down

Q: It looks like home prices are going down now finally. How far will home prices go down? Victor, Livingston, NJ A: Home prices have cooled in many local real estate markets but not in all real estate markets. Every local real estate market is different and the pace of home price declines will vary from market to market. In fact, some local real estate markets may not see home price declines at all. It depends on the town and ultimately on the specific neighborhoods in each town. Averages are misleading and some towns and areas simply have more sustainable home buyer demand regardless of current macroeconomic conditions like interest rates and the current state of the economy. For more […]

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Real Estate Insight

US Home Prices Slid In July From June

US home prices slid in July from June, the first monthly drop in years.

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Real Estate Insight

Home Prices Soared For A Second Straight Year In NJ During 2021

Home prices soared for a second straight year in NJ during 2021. After climbing 12% in 2020, they gained about another 15% in 2021.

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Real Estate Insight

Home Prices Are Rising Much Faster Than Personal Incomes

Home prices in the US are now rising much faster than personal incomes.

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Performance Property Real Estate Question

How Rising Home Prices & Job Recovery Will Affect Rents

Q: Rents seemed to go down in many places during the pandemic.  Do you think that will continue? Jules, Montvale, NJ A: Rents are actually rising precipitously in many local real estate markets now because of two main reasons: 1) jobs recovery (almost 90% of jobs slashed during the pandemic have been recovered 2) many first time home buyers can’t afford current home prices which have risen nationally 20-25% on average in the last year and job gains are creating more rental demand.  In addition, the eviction moratorium has reduced the availability of rentals. High home sale prices have resulted in falling new mortgage applications and the % of home sales to first time home buyers has fallen recently.  The […]

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Real Estate Insight

Home Prices In NJ Increased 12% In 2020

Home prices in NJ increased 12% in 2020 and are expected to increase at about the same rate in 2021.

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Performance Property Real Estate Question

When Will Home Prices Fall

Q: When do you think home prices will fall? Scott, Edgewater, NJ A: Whenever home prices increase faster than incomes, a home price correction is inevitable. Home prices in NJ rose almost 12% in 2020—this huge increase was not the result of local real estate market fundamentals, but rather was caused by fear of coronavirus. Although incomes in general did surprisingly increase in 2020, incomes certainly did not increase as much as NJ home prices. Therefore, sometime in the next few years perhaps in 2023 there will be a downward home price correction as local real estate markets in NJ approach market equilibrium. Thanks for your question, Scott. Good luck. For more real estate tips and information visit my blog […]

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Real Estate Insight

Home Prices In NJ Rose 11.6%

Home prices in NJ rose 11.6% in 2020.

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Real Estate Insight

US Home Prices Are Rising At The Fastest Rate

US home prices are rising at the fastest rate in 2 years as home inventory levels are down 17% since the same time last year.

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Real Estate Insight

Median Home Price Increases

The national median existing single-family home price increased 4.8% annually in the third quarter.

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Real Estate Insight

Home Prices Outpace Wages

Home Prices In 80% Of US Cities Grew 2x Faster Than Wages.

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Performance Property Real Estate Question

Are Home Prices Overvalued Now?

Q: Home prices in my area are crazy.  Do you think home prices overvalued now? Kenny, San Jose, CA. A: In your city, San Jose’, Kenny home prices have risen faster than I have ever seen in the 18 years I’ve been doing real estate (80% in 5 years!) Home prices at any point in time reflect current demand, so the run up on prices in silicon valley where you are and in Seattle are largely the result of the tech boom. In your area and in other tech boom areas, the big risk to home values occurs if and when the tech sector takes a nosedive. More generally, the share of cities with overvalued housing markets now is half […]

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Performance Property Real Estate Question

Major City Where Home Prices Have Recently Declined

Q: Are home prices rising everywhere nationally? Sarah, Brooklyn, NY A: The Case-Shiller Index condo price index in New York City fell in April from March, down 0.5%.  A one month dip does not a trend make, nevertheless it is remarkable that the one major city where prices have dipped is in the Big Apple where real estate prices have been on fire for some time. Incidentally, rents have also come down a little recently in Manhattan as well. In general, prices cannot continue to go up forever in any place which is why it’s so important that you track and monitor your local real estate market. Thanks for your question, Sarah. For more real estate information and tips visit my […]

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Real Estate Insight

Home Prices Rising

Home prices picked up steam in the first few months of the year.

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Real Estate Insight

Home Prices At All-Time Highs

Nearly two-thirds of U.S. housing markets have recently seen home prices hit all-time highs.

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Real Estate Insight

Total Value of All US Homes

The total value of all homes in the U.S. increased in 2017 to a total $31.8 trillion.

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Performance Property Real Estate Question

Biggest Threat To Real Estate In 2017

Q: Gerald, I keep hearing that we may be in another real estate bubble and everyone’s talking about interest rates going up, what should I be looking out for in 2017? Jasmyn, Bowie, MD A: Hi Jasmyn, thanks for your question and happy new year.  There are plenty of real estate trends on the horizon to keep an eye on but one of the biggest challenges to real estate in 2017 is housing affordability.  Home prices on average nationally are rising at 5 percent annually, which is double the rise in income–as I’ve said before, when home price increases outpace personal incomes, there’s only a matter of time before home prices fall because people’s incomes simply can’t support those inflated […]

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Home Prices Outstripping Inflation

Home prices are rising twice as fast as inflation according to Case-Shiller Home Prices Indices.

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US Home Sales Surge

US new home sales posted their strongest month in more than 8 years in April of this year, while prices jumped to a record level.

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