Did you have enough snow this winter? How was the shoveling and plowing? Thinking of relocating? Are you thinking of warmer weather? Are you happy where you are?
All these questions and more are factors in the real estate market. Couple all of these questions with limited inventory, rising prices and we have a delayed market in real estate. In the past few years, the months of January and February were very active but seeing homes in this year’s wintry conditions has limited the “spring market”. By the time you read this in April – once sellers can see their yards and there isn’t snow covering the property and compromising or limiting the first impressions – I fully expect to see a robust market once again.
The economic trends are also changing. Rising prices even with the same or slightly downward interest rates (below 6%) will continue. First time home buyers, according to the National Association of Realtors (NAR), are now an average of 40 years old. The American Dream of home ownership is still strong, and according to some research, over 85% of renters want to own a home and begin to build generational wealth. Statistically, there are more homes on the market nationally, but the Northeast and New Jersey are still under supplied.
What does this mean? Multiple offers and bidding wars still exist as the “norm” in many markets. Many communities have a ration of list price versus actually sale price of over 100%. Will this continue? Yes, as inventory in the Northeast (New Jersey) continues. In fact nationally, home buyers would have to see another 5 to 6 million homes come on the market to serve the buyer demand!
The spring market demand is already ramping up. In Franklin Lakes, demand remains strong as the core factors remain. Quality lifestyle, great schools, consistent home values and proximity to major highways all contribute to the buyers’ decision. Furthermore, the consistency and growth of the surrounding communities such as Wyckoff, Oakland, Mahwah, Upper Saddle River, Ridgewood, and so many more, are also a key influence.
So, the spring market is on hold, but will definitely be strong as the weather continues to improve, and the school year starts to wind down. The unusually harsh winter simply delayed what will transpire shortly. Make no mistake, many homes are still selling in Franklin Lakes and across Bergen County. Many home sellers want their homes to show only in the best possible conditions, and other factors such as retirement, divorce, transfer, and economic factors, contribute to additional homes being listed every day.
