It’s time for a quick market update now that we’re at the end of the year.
A lack of inventory continues to be the headline for the Bergen County housing market. No matter the town, no matter the price range we still have fewer homes available than the market needs. As I’ve said before here, I cannot see this changing for many years due to demographics.
Baby boomers are aging but they are more “young” than their predecessors. They are more physically fit and mentally sharp and for those who’ve lived in their homes a long while, mortgage free. In many cases renting a small apartment costs the same or more than the monthly cost to keep their home. They don’t need to sell and they don’t want to sell for a much longer time than most people would have expected. Thus a large contribution to the lack of inventory.
Buyers have slowed down due to the time of year which is normal but much less than last year. There is a good deal of activity out there with buyers going into contract at a fairly good rate. When activity in the 4th quarter is more than one would expect, that usually transfers into a robust following year. My projection for 2015 is that it will be very busy exceeding 2014 and that interest rates will be favorable until we approach summer.
Prices appear to have done what we expected – risen gradually in 2014. Mortgage rates which were approach 5% this summer are now around 4% and trending lower. I will publish a more detailed report in January but for now, all projections I made are on target.
I’ll have another quick market update for you in a few months,.