The Federal Reserve’s half-point interest rate hike announced last week was aimed at curbing inflation, but could impact a post-pandemic winning streak for the U.S. housing market.
Prior to the Fed’s decision, Bank of America surveyed current owners and potential buyers about their attitudes and preferences.
It may already feel like the housing market is cooling, according to Bank of America market leader Richard Krisinski, but more than a third of New Jersey residents (37%) have said so far that it had not affected their willingness to buy. a house, or where.
One in five respondents (20%) said they would like to buy a home in Bergen County, a short distance from New York. This percentage was followed by Monmouth (18%) and Essex (14%) counties.
“It’s no coincidence that they’re also among the six most populous counties, but New Jersey is a very vibrant state, with 21 counties really offering every measure of fun and enjoyment,” Krisinski said.
The survey directly compared New Jersey respondents to their national counterparts, and Krisinski said most percentages were within range.
For example, 66% of New Jersey residents said they would be willing to make an offer within three days of viewing a home (compared to 65% nationally), with 23% saying they wouldn’t. would have no problem making an offer immediately (20% nationally). .
Slightly fewer potential buyers in the Garden State (37%) want to stick to the initial schedule they set for themselves when buying a home than those nationwide (41%).
“The statistics are very consistent for New Jersey compared to national indicators,” Krisinski said.
Those hoping to buy homes in New Jersey already know that it’s a state with high taxes and high living costs, according to Krisinski, and that weighs in on their decision.
Nearly two-thirds (65%) in the state admitted they consider state and local property taxes.
“It’s an indicator, clearly, that the financial plans, the goals, the travel that individuals are considering, are specifically impacted by state and local taxes,” Krisinski said.
Yet even with tax concerns, New Jerseyans aren’t willing to compromise in some areas: They’re less likely than the national average to want to give up their privacy (34% vs. 46% nationally). National) or personal care routines (22% vs. 26%).
Other compromises were closer in percentage between the Garden State and the rest of the country, including the size of a house and its living area.
“What is evident is the trade-off that, generally speaking, potential buyers, based on our surveys, would accept for the neighborhood they are going to live in, how close they are to entertainment, restaurants and shops,” Krisinski said.
Millennials had their own distinct opinions about what they wanted out of the home buying experience, and that makes up the second part of our report next Tuesday.
Patrick Lavery is a reporter and anchor for New Jersey 101.5. You can reach him at [email protected]
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