The National Association of Realtors just came out with their updated Housing Market Statistics.
Prices through February 2012 are starting to show stability over the last few months. Why is this good news here in Central New Jersey? For the longest time, prices have been falling in just about every price range. When prices are falling, buyers want to sit on the fence, assuming the house they are interested in will be less expensive next month. This causes an increase in inventory of available homes which further decreases home prices.
When prices start to rise, sellers start demanding higher prices or delay putting their house on the market thinking the price of their home will be higher next month. This causes less inventory short term, until potential sellers start seeing prices closer to what they need in order to sell. As those numbers of sellers be at a price they like or live with, more homes then become available. The more properties on the market, the more prices will decrease leading back to the first scenario all over again.
The best news is for homes which are priced right. According to the Garden State MLS, homes are approximately selling for 95% of the asking price in Somerset County New Jersey.