As the COVID-19 pandemic starts to dwindle down, families across the nation are trying to assess their next move, if they haven’t done so already. A lot of people pulled the trigger early and decided to move to a bigger house right at the start of lockdown, which was roughly in late spring / early summer of 2020. The majority of urban dwellers followed suit and moved out towards the end of 2020 and continued to do so through the remainder of 2021. Here we are as we approach the Spring of 2022, and we find ourselves in a housing market frenzy.
Today, buyers everywhere are struggling to find a home that offers space, comfort, and relief from their previous home which was most likely in or attached to a city and close to their place of work. When I say struggle, I mean they are competing with other buyers in a frenzy of a housing market. On any giving listing, there can be as many as 10 offers on a home. Factor in telework becoming the new way for companies to adapt to our ever-changing world, employees don’t need to commute into the city 5 days a week and be present in an office. Hence, the big surge for the suburban home.
But how does this affect the housing market?
Buyers today are struggling to purchase a home in suburban areas. From speaking with agents and buyers all over, we are discovering that the average buyer is offering hundreds of thousands of dollars over list price, in addition to waiving contingencies such as appraisal and inspections just to be considered from a seller. We are also learning that even though buyers are offering up to 20% over the list price, and are still not securing a home in the suburbs. It has become nearly impossible to purchase a home in today’s market.
So what happens next?
The average person who is attempting to buy a home in the suburbs will soon start to look for a home right in their own backyard, including Hudson County. Homes in our area that offer 2 bedrooms and more will start to see an increase in activity and pricing will strengthen. Buyers that have successfully struck out on bidding on homes outside of our area will refocus their energy and look to stay longer in urban areas due to the high demand and competition in popular suburban markets.
As we approach the spring market here in Hudson County, keep an eye out as buyers will start to consider staying here long term instead of attempting to bolt to the burbs. Those larger homes that have two bedrooms at a minimum will start to post premium pricing as a list price and the larger homes that are 3 and 4 bedrooms will most certainly be sold at an accelerated rate with minimal days on market.
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