Existing homes sales for August were released last week, the high-end market is experiencing a slow down:
Nationally -
- Existing home sales were flat in August after subsiding the previous four months
- Sales are now 1.5% below year ago levels
- https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales
Closer to home –
- Sales in the northeast were up 7.6%, rebounding from a decline of 8.3% in July
- Existing home sales in the northeast are 2.7% below year ago levels
- Moderately priced homes are moving swiftly, while the high-end segment has seen a slow down
- According to Zillow, the average days on the market for a high-end home in Northern New Jersey and New York is 134 days, the highest level of the 35 markets that Zillow analyzed
- Active listings are up 22% in Chatham Borough and up 30% in Chatham Township (Keller Williams)
Click here to read an article about luxury home statistics in Forbes.com.
As people approach retirement age, often times they depend too much on the value of their primary home as a big part of their retirement nest egg. The table below shows the change in home prices across the country going back to the beginning of the financial crisis in 2008 to February, 2018. In many states, the prices have still not surpassed the peak before the crisis. In New Jersey, for example, home prices are still 14% below the peak of 2006. The question to ask yourself is “can my retirement plan withstand a decline in home prices that could last a long time?”
At Chatham Wealth Management, we create a plan for our clients by looking at their entire financial situation and we manage their investment assets based on that plan and our outlook for the markets. Please reach out to us if you would like a complimentary portfolio assessment at (800)472-8086
Source: Corelogic, February 2018
https://www.corelogic.com/downloadable-docs/corelogic-peak-totrough-final-030118.pdf