June sales showed a strong recovery according to data just released tonight by New Jersey Realtors. I’ve been using their housing data for years and June’s real estate market report is very encouraging.
Monthly Indicator Report
Published every month, the Monthly Indicator Report is an excellent snapshot of how the housing market is doing. Figures are for 1 year back (Monthly Snapshot) and a comparison to the month before (Indicator Report). Because both views are important, let’s take a look at them now.
To compare from 1 year ago we have the following:
- Closed Sales are down 21%
- Inventory is down 41%
- Median Sales Price is up 5.3%
This shows the effect of a tremendous drop in inventory. While inventory is down 41% demand is so strong that sales are down roughly by half. That’s quite an accomplish.
Let’s look at how June compares to May by looking at the closed sales:
- Single Family sales are down by 17.3%
- Condo/Townhouse sales are down 32.5%
- Adult Communities are down by 34.5%
Because this is only half of the story, it’s easy to think the market is tumbling. Not at all. Here are median sales price figures:
- Single Family sales are up 1.7%
- Condo/Townhouse sales are up 2.6%
- Adult Communities sales are up 4.5%
The Bottom Line
I love sales data because it so clearly demonstrates what’s going on. In the face of fewer homes for sale we have a strong, rising market. Higher median prices are a result of more high end sales and fewer low end sales. To put it in plain English, the market is appreciating. Additionally this strength runs deep from single family houses through adult communities.
It is quite obvious that June sales showed a strong recovery is underway. While it’s true that our historically low mortgage rates substantially contributed to this recovery, the lack of inventory is a near equal factor in my view. I bet when I crunch Bergen County figures on August 1st, the figures will be just as strong if not stronger. Bergen County is one of the primary locations where NYC residents are fleeing to due to Covid 19 fears and the civil unrest there.
Where we stalled in March and April, began to run in May and are galloping in June. I’ll be back to you soon after the 31st with Bergen County’s figures.