Q: I read somewhere that NJ home prices went up double digits last year. Is there anywhere in NJ where home prices aren’t going up? Rachel, Maplewood, NJ A: Actually, home prices in NJ went up double digits in both of the last 2 calendar years with an even bigger home price increase in 2021 than in 2020. However, there are places where housing demand is going down like in Sussex County and some other more rural parts of the state as more people return to the office and move back to cities as the pandemic is waning. Although there has been a reduction in housing demand in Sussex County and other outer ring areas, home inventory levels still have […]
continue reading Q: Home prices seem to be going up still even during the pandemic, do you think this will continue? Will, Montclair, NJ A: Great question, Will. Housing demand is far outpacing supply right now which is why home prices in so many places continue to rise in many local real estate markets despite the pandemic and all the economic calamity that has gone with it. In Q3 2020, half of all listed properties sold within 3 weeks down from 1 month a year before and more than ⅔ of all listings went under contract in less than 30 days. However, the basic rules of real estate ultimately supersede short term trends. Right now home price growth is outpacing personal income […]
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Economists are engaged in a debate about whether the geography of housing demand is changing as a result of the COVID-19 crisis and the recession of 2020
continue reading Q: Gerald, we are in the market for a home but it seems like every home we’re interested in goes under contract before we can even make an appointment to see it. Is this just my imagination or is there a real housing shortage? What can be done about it? Olivia, Hazlet, NJ A: Housing inventory in the US is at a 20 year low. There is no one cause – there are several causes. The main cause being that builders just aren’t building enough inventory. Other factors include: 1) high land prices 2) archaic and stifling zoning ordinances in some places 3) tight lending environment, particularly for 1st time home buyers 4) lenders reluctant to lend on condo purchases […]
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