Local real estate agent and resident of Mullica Hill for 31 years, Pat Settar, has provided a recent report of the spring real estate market report with an increase in sales expected.
“We anticipate a 3% increase in the number of sales, as well as a 3% increase in sales volume,” she announced in a statement through her agency, The Pat Settar Team. “And speaking of volume, you may hear about declining home prices in the news. In some parts of the country, prices have begun to go down. However, homes across our market area continue to appreciate. And that is the strongest sign of all.”
The increase comes as a result of what Settar described as “pent-up demand”. This is due to the first quarter of the year seeing two major setbacks that limited buyer activity.
The first was the two major winter storms that hit the area, which simultaneously affected listings. The second was the outbreak of the war in Iran and the Middle East, leading to rising oil prices and pushing interest rates into the 6% range. Despite the setbacks, the demand for housing in Mullica Hill remains.
“Even so,” Settar explained, “as conditions stabilize and oil becomes more readily available, rates will likely settle just above or below 6%. This seems to be the threshold that motivates a greater number of buyers and sellers to act.”
Though the current market is quieter than expected, according to Settar, it is not weaker. While an exact number was not provided, the number of houses that are below a 3% interest rate are the same as the number of houses above 6%.
“Demand for housing remains strong,” Settar stated. “As more homeowners push past the belief that the lowest interest rate is the only factor in a decision to move, and rely on more intentional reasons to move, we will see housing inventory rise. And there is plenty of demand to meet that increased supply.”
Prices on homes are still expected to rise. The agency recommended that people buy sooner rather than later. Using an example of a house worth $600,000, they argued it is better to buy now due than wait due to the same house expected to go up to $618,000 in the near future.
The example showed a difference of $70 in monthly payments, $3,034 if buying now versus $2,964 if waiting, purchasing the house now would mean a lesser down payment that waiting later.
“The small monthly savings of $70 is negligible,” Settar said, “especially when compared to the added investment needed to buy later. For many buyers, that makes a strong case for acting sooner rather than later, rather than trying to time the market for marginal gains.”
Real estate agent Pat Settar provided a preview of the spring housing market, as well as the winter setbacks that helped define the current market in a statement to the township made in June.
