NJ housing market may be bouncing back from COVID-19 downturn
At least for the year 2020, summer may replace spring as the most active season for home buying and selling in the Garden State.
Year-over-year numbers are down due to COVID-19 concerns and restrictions, but the latest figures suggest a recovery is coming for New Jersey's housing market.
"Sellers and buyers who postponed their plans due to the total lockdown are now beginning to feel comfortable," said 2020 New Jersey Realtors President Angela Sicoli. "There's a morale boost out there."
Month-to-month changes indicate growth in New Jersey in terms of home sales and listings. In April of this year, there were 6,162 pending sales. In May, the number of pending sales jumped to 10,237. From April to May, new listings jumped from 7,272 to 12,822.
Inventory remains a concern, though. The number of New Jersey properties for sale in May 2020 was down 38.4% compared to May of last year. That's good news for potential sellers.
"Sellers are getting thousands and thousands of dollars above the asking price because of the lack of inventory," Sicoli said.
At $315,000 the year-to-date median sales price for all markets is up 9.4% over 2019, according to New Jersey Realtors.
While buyers have to put out more money to secure a home, and have less inventory to choose from, they do benefit from lower-than-usual interest rates.
Open house events received the green light to resume on June 15, given all parties wear masks and follow the 25% indoor capacity limit. Real estate agents can show houses to prospective buyers on a 1-on-1 basis. New Jersey Realtors encourages virtual showings through tools like FaceTime.
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