August 6th 2022

If you’re planning on buying a home, it’s important to understand what’s going on in the real estate market. But with so much happening, it can be challenging to know where to start.

So, what do prospective home-buyers need to know?

• Inventory has improved in the past year. If you’re looking for a home, good news—compared to this time last year, there’s a lot more inventory to choose from.  Inventory in the Cape May County island towns has increased 6% in June 2022 compared to June 2021.
• Pay attention to your local market. While there is plenty of data on the real estate market as a whole, that national data may or may not apply to where you’re trying to buy a home—so while it’s fine to keep your finger on the pulse of what’s going on nationally, when it comes to your experience buying a home it’s more important to research your local market. The Cape May County market is primarily a second home market, and can vary greatly within just a few blocks.  
• Make sure you’re in a financial position to buy. In the midst of some economic challenges and uncertainty, it’s more important than ever to really look at your finances and make sure you’re in the position to buy before you start looking for homes. So, what does “being in the position to buy” look like? “Mortgage calculators and lenders will advise you based on financial rules of thumb that suggest you should spend no more than 28% of your income on housing payments and no more than 36% to 50% on total debt payments, including housing, student loans and car loans,” Hale said in the article.