Bergen County had 3% more closings with an average sales price that’s 5% higher. Median prices rose 2% and it took 1 week less to get a home sold.
Under contract figures point to an even stronger year ahead. Demand certainly has grown with 5% more homes going under contract. This means more closings for 2017.
Property values in Bergen County are doing better this year with solid price appreciation, quicker sales and stronger demand.
For example, Fort Lee shows 35% fewer homes under contract. However this past Sunday a Weichert agent held an open house at a Fort Lee home where 100 people came. They were lined up outside waiting to get in. So why 35% fewer homes under contract? Lack of inventory.
Same situation with Bergenfield. Bergenfield homes are flying – 1.5 month absorption rate. That is a blistering pace. Even so, there are 11% fewer under contract transactions. Again, lack of inventory. There just aren’t enough homes to meet the demand.
While under contract figures can be useful, the lack of inventory is so severe that you can’t always rely on this.
Tenafly, where the market is more balanced, has a tremendous 25% increase in the number of homes going under contract. Neighboring Cresskill is up 22% and Dumont is up 2%.
This is not going to get better. For the coming years we will continue to see a lack of inventory and that puts pressure on prices. Look at the Home Price Expectation Survey results for appreciation over the next 5 years. Bulls see it 26.7% higher, bears 6.3% and all projections at 19.4%.
The 1st quarter of 2017 tells us that this will be a terrific year for property values in Bergen County and the reasons for it project things to continue for years to come.