New Jersey Home ownership trends, by

NEW JERSEY HOMEOWNERSHIP TRENDS

Jerel Washington

At the beginning of this year, there was a report from Mashvisor about the effect of the pandemic on the New Jersey real market. This has shown the New Jersey housing market being slowed down by the COVID-19 despite the fact that the New Jersey governor declared real estate as an essential business. Many local buyers are waiting to see how the coronavirus will affect the economy locally and nationwide before they make a move to buy a house. Many sellers are scared that home prices would drop soon and are therefore pulling their homes out of listings. Below is some New Jersey homeownership trend we’ve come across.

HOME SALES ARE INCREASING IN THE NEW JERSEY HOUSING MARKET

More and more people in New Jersey are becoming homeowners; this is made apparent by the rise in home sales in the city. Pending sales have made a recovery. Although the housing market hasn’t completely recovered from the coronavirus effect on the economy, it is clear that buyers are making their way back to the market, which can be taken as a positive sign for the New Jersey housing market.

MORE PEOPLE ARE MOVING TO NEW JERSEY

It is unclear what the long-term impact is, but more people are choosing to move to New Jersey. This is because of the record low rates and stimulus activities the previous year. Due to the rise in home sales, vacancies continue to pop up in the city. Although it is noteworthy that the coronavirus negatively affected the New Jersey market, which makes this season the best time to purchase a property as it would be at a discount and at a

Most people expect a crash in the housing market, but this is highly unlikely due to the high demand for homes.

rate much lower than it was in previous years.

THERE IS A RISE IN THE DEMAND FOR THE SUBURBS

Suburban towns have seen an increase in home sales as more people are moving down; the demand for these suburban homes are about 25% higher than the numbers before the pandemic. The pandemic has really distorted the way people live, and due to the restrictions and measures put in place for the indefinite future, this has made many people move to the suburban to get more space than the city can offer. Suburban homes are roomier and sprawling when compared with the small, chic city space. This has also affected businesses who are moving to the suburbs as well to keep up with their customers.

SUPPLY REMAINS LOW

Although there were new listings in previous months, the supply of homes continues to be lower than it was in 2019. This is, however, a trend that can be found around the country. Although there are new buyers in the housing market because of the record low mortgage rates and the lifting of some COVID-19 restrictions, sellers are not quite ready to put their homes up for listing once more. Most potential home sellers nurse a fear of the COVID-19 and how it would affect the economy in the coming months.

A CRASH IN THE NJ HOUSING MARKET IS UNLIKELY

Most people expect a crash in the housing market, but this is highly unlikely due to the high demand for homes. There are many forecasts about home values in New Jersey dropping in the first quarter of 2021, but it won’t be by much. The local economy in New Jersey will significantly affect the value of homes; factors like unemployment rates, COVID-19, and GDP shrinking play a great part in how soon the economy recovers and how the New Jersey market turns out.

INCREASE IN DEMAND FOR RENTAL PROPERTY

There has been an uprise in the demand for rental properties in recent years; this is because of the drop in homeownership. This makes it clear that buying a New Jersey rental property is a good investment for most looking to buy a home. Although the COVID-19 effect on the housing market is unpredictable and might cause a drop in the value of such properties, the New Jersey housing market has proven resilient in previous years and will always make a rebound.

Reference

https://medium.com/mashvisor/howis-the-nj-housing-market-2020-doingaff37a440c7d#:~:text=With%20low%20 supply%20and%20demand,2%25%20 less%20than%20list%20price https://www.forbes.com/sites/ forbesbusinesscouncil/2020/11/23/ new-jersey-and-new-york-cityreal-estate-trends-for-businessowners/?sh=52e5ab426e75