Now that we are through the summer it’s time to do a sold report for Bergen County homes. Comparing 2017 to 2016 gives us a great view of the market trends so let’s get going.
Single family homes dominate the residential real estate market so we begin here. Let’s take a look at some numbers:
- 224 more sales for a 3% increase (8,082 to 8,306)
- 10% less time on the market (73.3 to 65.9 days)
- 6% higher dollar volume of sales ($245,843,417 increase)
- 3% higher average price ($503,232 to $519,259)
- 4% higher median price ($409,000 to $425,000)
- 2% more Under Contract homes (10,542 to 10,739)
- 3% higher Under Contract listing price ($500,249 to $515,543)
Most of you are looking at the prices. Prices are moderately higher so that’s great. Modest increases are sustainable because they’re solid. When you get aggressive increases it’s not healthy. So we’re in a good position. If you look carefully at this data from the New Jersey MLS you’ll see that higher priced homes sold well. Higher dollar volume twice the higher average price together with a higher median price tells you this. The future looks bright too. Look at the Under Contract figures. There are more of them at higher asking prices. This shows rising house prices.
Multi Family Homes
Investors have been shopping too. Income producing properties have been very popular and many people have been buying two family homes. Because a two family home is less expensive and less scary for a first time investor they’ve been selling well. Let’s look at two family statistics now:
- 77 more sales for a 5% increase (1,413 to 1,490)
- 10% less time on the market (89.5 to 80.4 days)
- 10% higher dollar volume of sales ($469,426,334 to $514,578,003)
- 4% higher average price ($332,220 to $345,354)
- 6% higher median price ($310,000 to $330,000)
- 4% more Under Contract homes (2,034 to 2,118)
- 4% higher Under Contract listing price ($329,224 to $341,475)
- PLEASE NOTE: NJMLS data is for 2-4 family homes but almost all are 2 family properties.
Consumer confidence is driving a lot of this in my opinion. When people feel good about real estate, they not only buy single family homes. They invest in real estate as well because they see the future positively. Although Bergen County values are high the buyers I have dealt with aren’t looking for a good rate of return immediately. Most have been 1st time investors who look long term. As a result, the immediate return is not an issue for them. If they get a small return it’s still better than what they get in a money market account.
Here’s another aspect of buying a 2 family: You can refinance as your equity grows. As a result, you get tax free income over the years paid for by your tenants. 2-4 family homes are also seen as savings for retirement when paid off or steams of retirement income. For people thinking long term this is a great opportunity. Because of all this multi family investment homes are extremely popular.
Unfortunately the New Jersey MLS lumps co-ops, condos and townhouses into the same category. As a result, I will do a separate article on these properties. There is simply too great a difference among them in both values and characteristics to place them together as one group. It just won’t make sense.
Bergen County has 70 different towns. This sold report for Bergen County homes is obviously a broad picture of the real estate market here. As I’ve said before, real estate is very local so let me know what towns you’d like and I’ll get you the report you need. Tell me what you want so I can send it to you right away.