When Will Home Sales Finally Increase

Performance Property Real Estate Question

Q: I’ve been a realtor for over 10 years and I’ve never seen so few home sales as there are now. When do you think home sales in NJ will finally increase? Gina, Long Branch, NJ

A: The number of home sales in NJ are down 75% from their normal rate right now. Most residential real estate transactions are trade up or trade down meaning existing home owners sell a home in order to buy a bigger more expensive home (i.e. to accommodate a growing family) or existing home owners sell a home to then buy a smaller less expensive one (i.e. when people retire). Because mortgage interest rates remain relatively high, most existing home owners are not willing to sell their current home with a low mortgage interest rate to buy another home and then take on a much higher mortgage interest rate. When mortgage interest rates go down, trade up and trade down activity will increase home sale activity. Thanks for your question, Gina.

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