It happened almost overnight in Northern New Jersey. 

We saw some of the headlines, and the trends in other parts of the country, but it was business as usual around here.a

15-20 offers on a home....Highest and Best....25% over ask...cut off an arm and give away your first born. 

Then sometime between June 1st and June 15th, we finally started to feel it as home buyers made their way to the sidelines or decided to take a step back and reassess. 

With interest rates rising to nearly 6.0% on a 30 Year Fixed Rate mortgage in response to out of control inflation, plus the likelihood of a global recession..who can blame anyone for needing to step back and regroup. It's a whole new ballgame. 

News headlines don't paint a full picture of where we are and what you should expect in this new market. Here's the reality: 

𝐈𝐭 𝐖𝐢𝐥𝐥 𝐑𝐞𝐦𝐚𝐢𝐧 𝐂𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐯𝐞, 𝐁𝐮𝐭 𝐈𝐭 𝐖𝐢𝐥𝐥 𝐁𝐞 𝐋𝐄𝐒𝐒 𝐂𝐎𝐌𝐏𝐄𝐓𝐈𝐓𝐈𝐕𝐄.

• There is still an incredibly large number of motivated buyers who were shut out during the boom of the last 24 months. Most aren't going to stop house hunting but 25%-35% will hit the brakes on their search until "the dust settles" or to re-evaluate their budgets & goals.

• If a home was receiving 10-15 offers a few months ago, they'll probably be receiving far less. Think, 1-4 offers.

• Homes in highly desirable locations which are fairly priced will still sell quickly but not necessarily the first weekend. 

• "Highest and Best" may finally disappear, setting up actual meaningful negotiations once again (fingers crossed).

𝐇𝐨𝐦𝐞 𝐏𝐫𝐢𝐜𝐞𝐬 𝐖𝐢𝐥𝐥 𝐂𝐨𝐧𝐭𝐢𝐧𝐮𝐞 𝐓𝐨 𝐑𝐢𝐬𝐞

• It's just supply & demand.  Inventory levels in towns like Westfield and Scotch Plains are around -40% versus 2019. As long as inventory remains this low, prices will continue to rise even if the number of home buyers reduces.

• Fannie Mae, Freddie Mac, National Association of Realtors, Zillow, Realtor.com are all in agreement of this fact that prices will continue to rise in 2022 all the way through 2027. No bubbles bursting around here. 

*𝐇𝐈𝐆𝐇* 𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭 𝐑𝐚𝐭𝐞𝐬 𝐀𝐫𝐞 𝐇𝐞𝐫𝐞 𝐓𝐨 𝐒𝐭𝐚𝐲 𝐅𝐨𝐫 𝐀 𝐖𝐡𝐢𝐥𝐞

• Getting inflation under control is like turning a big ship, it's a slow process and won't happen overnight. Most experts believe there will be more, small increases before coming back down to somewhere around 5.0% a year from now. 

• Perspective is everything here. A 5%-6% rate is still among the lowest over the past 40 years in the United States. The post Great Recession thru Covid interest rates made us all spoiled.