COVID-19 has had a major impact on the real estate market in Union & Essex County NJ. But it might not be what you think! in this video I talk about how the pandemic has effected home values, and makes some predictions for real estate market in 2020 and beyond.
So first & foremost, I hope you are healthy and safe during this time.
Secondly, I want to take you through what's happened with Union & Essex County real estate during this lockdown period.
No surprising, new inventory plummeted as most would-be sellers opted out of putting their homes on the market.
But somehow, new contracts increased snd closings continued, while prices actually went up, county & statewide!
So how is it possible that the market is doing this well during a pandemic?
Here are the top 3 reasons:
#1: REAL ESTATE WAS DECLARED ESSENTIAL
#2: HUGE REDUCTION IN NEW HOMES FOR SALE
#3: MORTGAGE RATES ARE AT ALL TIME LOW
-On March 20th, Gov Murphy declared real estate as an essential business, allowing realtors to continue showing homes.
-However, COVID fears had many homeowners deciding to not list their homes. So inventory dropped significantly.
-At the same time mortgage rates dropped to all time lows, so serious buyers were enticed into the market.
-But safety concerns among buyers and sellers led to a noticeable slowdown in new real estate activity during that 3-4 week period.
-Around mid April COVID fears began to relax, and buyers started going out and looking at homes again.
-This sudden wave of serious buyer activity revived competition in the market, especially for modestly priced, vacant, single family homes.
Thus.. home prices have remained stable, and in many towns, have actually increased!
WHAT DOES THE FUTURE HOLD?
As we ease the economy back into gear, It will be interesting to see how the real estate market will progress through the rest of 2020 and beyond.
The disease will still be out there, the virus is not going away. Here are some factors that could effect values in the next 12-18 months.
Overall, buyers have shown determination to go out and bid on homes, and low inventory could continue to drive competition for homes in Union & Essex County.
At Realty 33, We tap into 25+ years of experience and market know-how to help our clients make streetwise real estate decisions.