If you’ve been reading my blog, then you know about The Otteau Valuation Group Inc. I have for years encouraged everyone interested in New Jersey real estate to subscribe to this outstanding service. Jeff Otteau has a well deserved reputation for being one of the most astute analysts of the New Jersey real estate market. His reports always contain excellent information. I have always found the information invaluable.
His latest MarketNews Otteau Report has terrific things to say about New Jersey real estate: Demand for New Jersey homes has increased 42% over the past 2 years. The number of homes going under contract has soared to a level not seen since 2007 so far this year.
The Otteau Report goes on to say the following: “Unsold inventory began the year at its lowest level since the housing crisis began in 2006. The number of homes being offered for sale in New Jersey continues to decline, falling by 18% over the past year.”
Consumer demand has not changed. Inventory is down considerably. Because demand is increasing with fewer homes to sell, prices are going up. It is simply the law of supply and demand at work.
On job growth, Otteau states that “2013 is on pace to surpass last year’s “best-in-a-decade” private sector job growth.” More jobs for people has a very positive effect. It’s more than economic. It’s also psychological. People feel better. They are more confident in their future. This translates to more consumer spending. Real estate reflects this.
Demand is increasing every day while the inventory remains very low. The minute a nice Bergen County home comes on the market, it’s snapped up often with multiple bids. As a result, 2013 will be a tremendous year for the Bergen County real estate market.