The picturesque township of Vernon, New Jersey is nestled into the foothills of the Appalachians, lending for gorgeous views and memorable strolls in the fall and spring. The many lake communities that incorporate Vernon are beacons for the throngs of tourists who visit the area in the summer, and the nearby Mountain Creek Ski Resort attracts winter sports enthusiasts annually. With so much to offer tourists and residents alike, it’s no wonder that the real estate market in Vernon has been focused on sellers in recent years. The historic rise nationwide in median home prices over the past three years has certainly impacted real estate in this area of New Jersey, as bidding wars were common among buyers. But what does the financial forecast predict for real estate in Vernon going into 2024? Let’s see how the experts in the industry have weighed in on next year’s Vernon real estate market.
The current national forecast for real estate
The demand for homes reached historic highs in June 2022
, with the median home price established at $413,800. In a joint effort to curb soaring inflation and to make housing more affordable, the Federal Reserve began to hike interest rates. This strategy seemed to work, as inflation numbers presented better in mid-2023 and as median home prices began to fall.
But the short supply of homes is still commanding a high demand for them. Even as interest rate increases made the number of home closings drop and median home prices decrease, this impact has been short-term. Median home prices have certainly rebounded since the first year-over-year decrease was recorded in April of this year, and financial forecasters are predicting that median home prices will soon smash the record set in June of 2022.
This high demand has made forecasters predict that most major real estate markets will continue to be favorable to sellers throughout the rest of 2023. But with interest rates predicted
to begin dropping at the beginning of 2024, there could well be a shift in who has more control in the real estate market: buyers or sellers? Let’s look at how this national prediction will impact these two groups of consumers in Vernon.
What do the national numbers mean for the Vernon real estate market in 2024?
The market for homes has been more balanced over the last year between buyers and sellers as compared to how they have been nationally. While still slightly favoring the seller, buyers have been able to get good deals on homes that have consistently held their value.
If forecasters are correct in their prediction that interest rates will begin to drop in 2024, this will certainly have an impact on smaller markets like Vernon. Lower rates will lead to more interested buyers and further create a higher demand for available homes.
The future of the Vernon real estate market will depend on two items; what the Federal Reserve will do with interest rates and whether or not the available units will increase. This uncertainty will naturally give pause to anyone considering buying or selling property in this market. However, data shows that there are good reasons to discuss either option with a real estate professional sooner than later.
How to navigate the Vernon real estate market as a seller
If you are considering selling Vernon real estate, you will be making more of a profit today than you would have before home prices began to soar in the early months of the 2020 Covid-19 pandemic. While the prices in this market have stabilized somewhat, it is expected that interest rates will keep increasing for the remainder of 2023, with forecasts suggesting that the Fed will reduce them next year. Should this prediction prove accurate, reduced demand in 2023 could potentially lead to a modest decline in home prices. The decision to sell today might well mean the difference in making or breaking your investment.
But if you’re in no rush to sell, and if the predictions are correct about dropping rates for 2024, you might stand to make a bit more of a profit at close in 2024. Lower rates mean more demand, which ultimately leads to higher median home prices.
What to expect in the Vernon real estate market as a buyer
Comparing today's listed home prices to what you might have paid several years ago can be a source of frustration. However, attempting to strategically time the market as a buyer is often a futile endeavor. In the long run, home values generally appreciate, albeit with varying rates of increase from year to year. If you're contemplating a home purchase as a long-term investment, precise market timing isn't essential; in fact, it could prove costly in today's environment.
If rates continue to rise over the rest of 2023, you’ll be paying more out of pocket in interest rates on your mortgage. And even if the predictions are correct and rates start to drop next year, you can always refinance when they are lower than your current rate. You might even be given the option to buy points off of your rate with your mortgage company.
A buyer in a competitive market will benefit from a buyer’s real estate agent. They will be able to negotiate the best possible deal for you at close, and help guide you to getting a relationship established with a qualified lender.
Ready to buy or sell in Vernon?
The decision to buy or sell real estate in any market is one that should take a lot of serious thought and involve a thorough strategy. To get the most out of your home, the skills of an experienced real estate agent will take you a long way. And if you’re attempting to buy a home, you will want the negotiating skills of an agent present at the bargaining table. If you are looking to buy or sell property in Vernon, New Jersey, consider a professional at Clearview Realty
. Their years of experience representing both buyers and sellers will take you on a seamless journey from the beginning to the closing day.