Time for a caffeine jolt.  April’s tax-credit stimulated surge ebbed in May, as seen on the graph below.  Some commentators compained this tax break just moved demand around instead of creating demand but hardly any of them were Realtors, active home sellers or buyers, who all loved the stimulus.  Some even called for an extension. 

Yesterday the New Jersey Senate passed (by 38-0) and sent to the Governor another credit for buyers.  Will this tax-cut budget-conscious Governor sign the NJ credit into law?  The bill is heavily weighted, not to the majoity of homes for sale but to new construction, and builders are very powerful in New Jersey, so stay tuned.

Meanwhile, we’re in the equivalent of a mid-afternoon slump so a little caffeine could help get home sales back into the 110-130 range of recent mid-year sales of Hunterdon homes.  But fear not, there’s another seasonal wave coming, perhaps smaller but real:  those who missed the spring credit but not the desire to move and settle in before the next school year starts.  I’ve only got anecdotal evidence of this mini-surge, based on my listings, many in Clinton Township, so we’ll have to wait for next month to see if it shows up in Hunterdon sales. 

And what about prices? That depends on the inventory, which is a long way from the 3-5 month level where competition among buyers for the best homes starts to push home prices higher.

{The inventory index, the number of homes for sale divided by the number sold last month, measures the absorption rate in the current local homes market.}

The graph above shows an unusually low inventory index in April and a higher inventory index in May. But given the time of year and greater confidence in the overall economy we could easily swing back to the blue, green, yellow, red zone this month and next.

You don’t need to wait - now’s the time to take care of your real estate needs.  So call me (908) 797-9900 for a free consultation and price analysis on your home.

Call me or email Don Sherblom  RE/MAX Town & Country 44 Leigh St., Clinton NJ 08809 

908 797-9900    ClintonRealEstate.com

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Please call for a free price and marketing analysis on your home. I’d love to add you to my list of happy clients and look forward to marketing your home. Don Sherblom  908 797-9900