As we look forward to turning back the clocks this weekend, we are all still in limbo in our personal and professional lives. Do we stay in urban areas because we love our surroundings and the access to everything our small towns offer? Or do we bite the bullet and join the masses, and bidding wars, for the suburbs to battle it out for our forever home?
While we take no pleasure in watching our neighbor across the river go through its mass exodus, it’s no hidden secret that New Jersey and its suburbs are clearly benefiting from this recent path to more space and fewer crowds. Nearly every county within a 45-minute drive of NYC has been experiencing buyers from all over flocking to snatch up inventory and plant new roots outside of their city. That is, except for Hudson County…
Towns like Hoboken and Jersey City continue to experience high inventory, few buyers, and lengthy days on market. Price reductions are also becoming a common theme, which hasn’t been a topic of conversation in a previously robust market. Sellers who own in the area have either moved on and secured their next home, or would like to sell and move out of the area. This creates an urgency for sellers and an opportunity for buyers. If you are living in the area and would like to stay, this is your chance to trade up and purchase a home that otherwise wouldn’t have been affordable. Plus, you get the benefit of staying local while adding that additional bedroom, yard, or even a parking space.
Our monthly supply of inventory continues in the wrong direction. What used to be a struggle for the past several years, high inventory now has to be taken into consideration when pricing your home in today’s market. Homes will sell, it’s just how aggressive sellers are when bringing their home to the market. And ultimately, how realistic the negotiations are when an offer is presented. Hoboken’s October absorption rate is hovering right around 9%. Anything below 15% is considered a buyers market. So while all of our surrounding counties are experiencing high demand, sellers really need to take into consideration the few buyers that exist and be ready to negotiate should a buyer emerge and write an offer on your home.
All of this continues to trend as the suburban markets will grow and the demand for urban areas will continue to struggle. Until the world settles, this will be our direction. If you are a seller in Hudson County, you need to be price conscious and know the market. If you are a buyer, the time is now to jump on a home and make an offer. These interest rates will eventually go away and so may the sellers. You certainly control the market, and only time will tell if this will last well into 2021.
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