Now that we’re through May, it’s time to see how Bergen County home sales scored. We’ll look at Bergen County homes in total and then go on to some individual towns. All data is directly from the New Jersey MLS.
Through May I can report the following comparing this year to 2015:
Sales increased tremendously. Up 24% from 3,211 to 3,970 – that’s 759 more homes sold in 2016 through May. Both the average sales price and median sales price were down by 2%. The average sales price is $475,455 and the median price is $386,600.
Despite dire predictions that the October 3rd change in mortgage regulations would create months of delays, homes are selling faster.
This is a confusing picture. Low inventory, soaring demand and 2% lower prices? What happened to the law of supply and demand? 2016 Bergen County homes sales data doesn’t make sense. Let’s dig deeper.
Looking at the high end at $2 million + shows an increase of 6 to 34 sales with average sales prices up by 9% and median by 6% in 4.5 less days. The average sales price is $2.776,471 and median is $2,520,000.
Look at the lower end, under $400,000, there were 27% more sales with an average sales price 2% higher and median prices up by 3%. Homes here too sold 5 days quicker. So where is the trouble?
The trouble with the market is in the middle. At $500,000 to $1 million both average sales and median prices are down 3%. There are 21% more closings with 6 less days on the market. So it’s the middle of the market where we are losing ground with pricing.
There’s no way to precisely determine why but clearly Bergen County home sales are not doing as well here. My observations being in the market every day are that many of these homes need to be redone. Most of the homes that I see in this price range need updating and very often new kitchens and baths. Homes that need work take a beating in this market. With such a large group it pulls down the overall figures.
As always condition is important along with location. Bergen County home sales so far this year reflect the fact that many mid range homes need work.