In the high-stakes world of home buying, some individuals find themselves in situations where relocation is not merely a choice, but a necessity. Think divorces, estate sales, and foreclosures. These urgent circumstances often leave buyers with limited options, forcing them to either extend their rental leases or fork out more money than they anticipated.
Here’s a peek into the current real estate landscape in Bergen County, as revealed by data from Altos Research:
- Drop in New Listings: New listings in Bergen County have seen a significant decline since November. While seasonal fluctuations usually result in a decrease in listings, the pace of decline has slowed considerably. For instance, the 90-day rolling average of new listings was up 18.5% year over year at the end of November, but has now dwindled to just 3.8%.
- Pending Home Sales: The numbers for pending home sales are equally bleak. Although the 90-day rolling average remains 17.2% higher year over year, the recent figures show a less rosy picture. Weekly new listings have dropped by a staggering 86.9% compared to the same period last year.
- Market Dynamics: Altos Research’s Market Action Index, a barometer of the buyer-seller power dynamics, currently sits at 45 on a 90-day rolling basis. Anything above 30 indicates an advantage for sellers, though agents are noticing a decrease in the number of offers being made, especially for homes in the $900,000 range.
Laura Gill, a Keller Williams agent, explains, "We are still in a seller’s market, but what we’re not seeing is as many offers as we were before. If it’s a renovated, adorable little starter home in the $500,000 to $600,000 price range, we may still get 20 offers."
- Challenges for Buyers: Finding the ideal starter home in Bergen County is becoming increasingly difficult, with the median home price resting at $925,000. While the county has seen a 5.7% annualized growth in prices on a 90-day rolling basis, this is lower than the close to 20% appreciation seen at the beginning of 2024.
Looking ahead, the real estate landscape in Bergen County seems unlikely to improve in the near future. High mortgage rates, currently hovering around 7.1%, and the Federal Reserve’s cautious approach to rate cuts in 2025 are adding to the uncertainty already felt by homebuyers.
Neal sums it up, stating, "There’s hope but not real optimism. They’re hoping that there might be a Trump effect. They’re hoping that there might be an inflation effect or a Fed rate reduction effect. There’s hope but not real confidence."
In conclusion, navigating the real estate market in Bergen County is proving to be a challenging ordeal for both buyers and sellers alike. With uncertainties looming on the horizon, the road ahead may be paved with obstacles, requiring a cautious and strategic approach to home buying and selling.
Leave feedback about this