By Mike Lentz | The Mike Lentz Team – Keller Williams Realty
Home affordability is more than mortgage rates. Rates have climbed due to global uncertainty and inflation, but wages across South Jersey are outpacing home price growth by about two percentage points. That gap, combined with steadier inventory, gives buyers more negotiating room than they have had in years.
Mortgage rates get all the attention when people talk about affordability. They matter. But they are not the whole story. Wages, home prices, and inventory levels all factor in. Here is what the data actually shows right now across South Jersey.
Mortgage Rates Have Been Rising
After a year of trending down, rates have started to climb again. Global uncertainty, Middle East tensions, and stubborn inflation are all pushing them higher. Colin Robertson, Founder of The Truth About Mortgage, put it plainly:
“You can’t have $100 a barrel oil and not expect inflation to rise, which translates to higher bond yields and mortgage rates.”
The graph below uses data from Mortgage News Daily to show just how volatile rates have been:
Rates probably are not heading lower until both geopolitical tensions and inflation ease. Even then, most forecasts put them in the low to mid-6s. Not dramatically different from today.
If you can afford to buy and you find a home that works, waiting for a rate drop that may or may not come is a gamble. Nobody has a reliable timeline on when conditions will shift.
Wages Are Outpacing Home Prices
Inflation headlines make it sound like everything is getting less affordable. For housing, the numbers tell a different story.
Data from the Federal Reserve Bank of Atlanta and Redfin shows wages growing at about 4% year-over-year. Home prices are growing closer to 2%. That two-point gap works in buyers’ favor. Your income is gaining ground on what homes cost.
One reason prices have stayed moderate: home prices across South Jersey have held steady this spring.
What This Looks Like in Camden, Burlington, and Gloucester Counties
Median prices across Camden, Burlington, and Gloucester counties have been relatively stable. That matters because you are not chasing a runaway market the way buyers were in 2021 and 2022. You have time to find the right fit without overpaying just to get in the door.
Existing Home Prices Have Held Steady
The graph below shows home price data from the National Association of Realtors (NAR) over the past four years. No dramatic run-up. No crash. Slow, steady growth:
Buyers have more choices now. Less competition, more negotiating power, and more time to find a home that fits your budget and your life.
Across Burlington, Camden, Gloucester, Salem, and Cumberland counties, market conditions have shifted toward better balance. Buyers are securing homes without the frantic bidding wars we saw in recent years. There is room to negotiate, time to think, and options to compare.
Bottom Line
Rates have been volatile, and global instability is keeping them from settling. That part is real. But affordability depends on more than rates alone.
Wages are outpacing home prices. Inventory is up. Negotiating power has improved. Prices have held steady instead of spiking. Those factors together create a more workable environment than rates alone would suggest.
If you want to talk through what this means for your plans, schedule a quick call and we will walk through it together.
For the full picture in your county, see our latest recaps for Camden, Burlington, Gloucester, Salem, and Cumberland counties.
