It’s Spring! Buyers have just begun their active searches on the home of their dreams. Buyers are looking now. If your area is anything like mine here at the Jersey Shore, the dream can be cut short because low inventory. What's your experience been like? Depending of price point and location of the home in a HOT area; the home may list in the morning then have multiple offers on the same day. There are also many markets where the demand is so high. The prices have increased knocking many first-time buyers out of the ball game.
The other part of the picture to increase in home prices is the interest rates have remained low enough that has gotten the many buyers off the fence in to Home Ownership.
It boils down to if a buyer has flexibility in closing, good timing on buying, they can buy their home generally where they want to be. But not everyone can do that.
Many analysts predict that the housing market will continue at a slower pace due to less buyers in the market place in 2019. That will help ease down rising home values. But since Real Estate is locational. That doesn’t seem to be true in this area. New Jersey was named #1 place to move out of in 2018 by United Van Lines. It’s astounding to me that 66.8% of the moves in 2018 were outbound according to their study yet, there are Real Estate inventory shortages in lots of communities in New Jersey.
New Jersey has New Construction happening all over the place, developments, spec building, rental properties. Most of the new homes built in development these days are high priced homes with more luxury in mind weeding out many that can afford to buy it. There's no money in it for the builders in these big developments to sell a more affordable home. The rental demand being so high developers/builders are helping by building Luxury Rental complexes with rentals starting $1800 to $3000 for a monthly rent. Once again leaving our families earning a more modest income. Those rental payments are as high as monthly mortgage payments. And you don’t get much more living space than you get if you owned your own home. Why NJ doesn’t make it easier to own a home instead of building all these rental complexes that are expensive is beyond me?
According to the Market Summary from the Monmouth/Ocean County MLS, to date in 2019 the average home price is closing at $299,000 averaging 47 days on the vs. in 2018 the average home closed price was $291,000 closing within 47 days on the market. NJ prices are rising. The demand is always higher closer to NYC and industry, but these numbers point strongly to consistent residential growth in our area. The home buying public is willing to commute a little further to provide quality of life to the family in New Jersey.
Other alternatives I am seeing in our Garden State are the changes with some of the large used buildings vacated by big business and the military over 10-20 years ago. Monmouth and Ocean county seem to be re-inventing themselves to accommodate today's buyers and their work habits. That’s for another topic, i.e. Bell Works, Fort Monmouth and plans for the Monmouth Mall.
All these statistics and prices can be enough to make someone wanting to buy a home, shy away from making it happen because of the affordability and demand. If you can avoid thinking on the negative side of home buying, been on the losing side of a bidding war one too many times, there is always a way. Before you start looking, you do the obvious get pre-approved. If you have to sell to buy, get an evaluation on your home, get your current home ready to sell. Do all those things first.
A little advice in competitive market is to Remain Open. Buyers have their must have lists for the home of their dreams but the quickest way to disappointment is to not be flexible. If a home meets most of your needs, don’t nix it.
Be Decisive. If you see a place that meets your needs don’t hesitate, make the offer. A competitive market has no time to wait.
Timing can be everything in life and it’s the same when you are trying to buy a home in the Spring Market. Please do yourself a favor, get a good agent that will work for you. It’s important to have a professional on your side. They will stay on top of the market, check on comps in areas of interest and become the extra eyes you need to find the right place.
As Real Estate professional, myself and my associates will be tackling ways to create opportunity in a LOW INVENTORY MARKET on April 30th. This is the 4th in our series in helping buyers and sellers become empowered in the World of Real Estate. We have ideas, methods and tips to help support and educate the home buying public in how to buy a home today! If you didn’t succeed last year, if you are just starting to look, if you have put many offers and got out bid, this is a topic for you. “MEET THE EXPERTS” buy a home in a tight market. You can become Pro-Active instead of Re-Active when it comes to buying a home.
"How do you beat the Low Investory Woes of Real Estate" Meet the EXPERTS, Buy a Home Today!