This market is not slowing down. While we had a surge of buyers in June and July, this real estate market is strong for fundamental reasons. Want to know why? Take a moment to read the article I wrote on this So where does that leave you? Let’s start at the beginning
The 2020 Spring Market
Remember the lock down? Real estate closed along with the rest of the economy. As a result there was no spring market in March, April and May.
June was different. Real estate opened up and pent up demand came charging in. Added to this was Covid 19. Because it’s impossible to social distance in cities, people began fleeing to the suburbs.
Add in riots plus abrupt negative changes to NYC quality of life. It created a near panic to get out. This is why June and July had a surge of buyers. Spring came in summer.
This Market Is Great To Buy or Trade Up
This market is not slowing down because of fundamentals (read my article please) and rates. Mortgage rates are at a level never before seen. There are people who had no hope of buying a home who can buy today.
Trading up is cheap too. It’s actually easier to trade up to a bigger house even with higher pricing. 7 years ago you bought at over 5%. Today you can take the profit from your present home and trade up for a payment that so much less than you’d expect. It’s so affordable to trade up now.
Numbers and Statistics Don’t Lie
Let’s take a look at New Jersey through July 2020 compared to 1 year ago –
- Down 1.2% in the number of sales
- Down 42.2% in the number of homes for sale
- Up 7.7% in the median price of a home
Look at these numbers from the New Jersey Realtor State Association. How can you be down 1.2% in sales while inventory crashed by 42.2%? Because what’s on the market is selling.
Is this a bubble? I’ve been a full time Realtor for 33 years. Bubbles, in my experience, go up at 1-1.5% per month. That’s not this.
The problem is inventory – the severe lack of homes. It’s tough but not impossible for buyers. (Check out my article on how to develop a winning strategy.) Homeowners have a uniquely special opportunity right now to sell their homes.
To Sum Up
- The lock down only delayed the spring market
- Consumer demand for housing is fundamentally strong
- We had a surge of buyers due to Covid 19 who want out of the city
- Even more buyers want out due to NYC riots, negative quality of life
- Low rates create opportunity for buyers & sellers
- Both 1st time & trade up buyers are active as a result
I hope you can see why this market is not slowing down. If you have more questions or want a consultation, call me at 201-741-8490. We can do it from the comfort of your home using Zoom.