We have been keeping tabs on the real estate trends for a while now, and as noted in our recent post about high likelihood that the markets doing well this year, we are picking up more signals that hint at a nice warm-up in home sales right here in New Jersey. While some weakness here and there is to be expected, we do not think that this will have much adverse impact - quite the opposite will happen! Let's review a few leading indicators...
Many Towns in NJ Expected To See Boost in Home Sales
While doing our research on New Jersey market trends we came across an article containing excerpts of an interview with a prominent local realtor, Katie Severance, who noted that several towns such as Millburn (which includes Short Hills) and South Orange will be seeing an increase in home sales in the spring and summer seasons during this year. She explained that as the pandemic begins to fade, communities with direct connections to midtown Manhattan will do well with home sales as people will want quick access to the city and back home. I tend to agree, as many of my clients ask about this when looking for luxury homes in the areas that I cover in New Jersey.
Bidding Wars Starting Sooner Than Most People Expect
Ms. Severance had also pointed out that she is seeing bidders lining up to fight over houses in this area while targeting a closing date in April or May. This is easily understood by me as many of my clients prefer to be in their new homes by the start of the summer season, or close to that time frame. This is also boosted by the fact that mortgage interest rates are still at historically low levels so this gives home buyers an extra incentive to get into the real estate of their choice sooner than later to lock in a low rate.
Early Data Shows Market Beginning To Pick Up
My own data for the Bergen County real estate activity (based on MLS data) is also starting to corroborate the turn toward increased real estate transaction volume. Check out the chart below:
As we can see from the chart above, the first week of March 2021 is where we noticed a pick-up in the active listings volume, and this is also corroborated within the pending sales transactions data as well. Although the overall home sales total (gray line in the chart) spanning a rolling window of preceding six months of data at each data point is still light due to the normal winter season lull, the leadiing indicators of active listings and pending sales show clearly that we have reached a turning point. The sales totals are sure to follow as the markets warm up in the coming weeks.
Conclusion: The Time to Start Taking Action Is Now
All of the above information is exciting news for us realtors, and it should also serve as a reminder for astute homebuyers that now is the time to start taking action! You can get better-priced deals sooner than later, and the saying about early birds and worms is well worth heeding. If you have not yet checked out my showcase home listings now would be a good time to do so, as I am currently booking appointments for tours for interested buyers. Remember, it normally takes between 30 to 60 days to close on a real estate transaction and since it is halfway through March already, you want to get started now so you can enjoy summer 2021 in your new home!