How’s Real Estate in Bergen County so far this year? Let’s take a good look.
Using NJMLS Data Correctly
We are at the start of a new year. As a result, it’s necessary to look at the market data from a different perspective. This is because January and February closings originated last year with rare exception (30-45 day cash sales). So what do you use?
You use under contract figures. I feel that this is the most current picture of what’s happening.
Because Realtors must use the New Jersey State sales contract for residential transactions, attorneys know what to expect. Attorney Review normally takes 1 week as a result. So you’re under contract within 10 days from the time a seller signs your offer. Plus inspection issues rarely alter the sales price. What could be more current than this?
What’s Really Happening
Let’s compare 2019 to 2020 for January and February –
- 14% more homes went under contract this year (2,048 to 2,336)
- The average price is up 7% ($508,783 to $542,442)
- The median price is up 9% ($414,194 to $452,950)
- Days on the market took slightly longer this year (69 to 72)
- 4% more homes came on the market this year (3081 to 3,206)
While the inventory grew by only 4%, 14% went under contract. That’s scorching demand for Bergen County homes.
The Stock Market, Corona Virus and Mortgage Rates
January 1st sure was quiet compared to today. There was no major news about the corona virus, stock market volatility didn’t exist and rates were good at just under 4%. Today is a different world.
The Dow Jones lost 12% of it’s value and is volatile, mortgage rates are under 3.5% and the Corona virus is a very serious international issue.
Attendance at open houses yesterday was strong. We have so far today 32 new listings and 28 accepted offers. How is real estate in Bergen County? Vibrant with powerful demand so far. It seems that 2 things are fueling this – employment and rates.
The dramatic change to the US economy since Jan 1, 2016 is undeniable. Unemployment is historically low as are mortgage rates. It’s truly impossible to know what will happen with the Corona virus but real estate is a tangible asset.
A home is basically enforced savings – keep your house, pay it off over 30 years, get some tax relief during that time and retire with a nest egg that most of us will get no where else. Sure prices will go up and down. Who cares? It’s a long term investment that’s been very very good.
No one knows how bad this virus will get or how it will effect the economy. There is future hope if what has been broadcast is correct – a vaccination should come next year. Let’s hope this happens.