Fueled by residents moving out of urban areas and 2020’s record low interest rates, the New Jersey real estate market stayed hot throughout the pandemic and into 2021. From commuters no longer needing to commute, and city dwellers no longer missing out on the city life, residents near and around NYC were selling homes and moving into the quaint communities of New Jersey.
2021 and the Seller’s Market
Those living in urban areas were beginning to realize that living in the concrete jungle wasn’t all they had hoped for. Families quarantined in small apartments, students completely virtual, and in-person work optional resulted in a rise among those wanting to leave the city for a more spacious and quiet lifestyle in the small towns of New Jersey - such as Oradell and River Edge.
In 2020, homeowners and renters began to reconsider where and how they were living, and whether or not it can be sustainable long-term. In 2021, this reconsideration remains the same. Bergen County, the closest to New York City, saw as high as a 35% increase in the median home sale. The social distancing and lockdown mandates that were put in place greatly increased the demand for houses that have room for remote work and remote schooling, and this demand is consistent in most urban spaces. With everyone choosing to leave their city life behind for a more spacious home in the various different counties of New Jersey, the housing inventory will continue to dwindle.
What does this “COVID Premium” market mean for you?
The New Jersey real estate market has resulted in homes selling as soon as they are listed, with buyers bidding against one another and even offering to pay with cash. With low inventory and high demand, New Jersey real estate just can’t keep up with this COVID-19 market. Compared to last year, the number of houses on the market fell over 50%. With this decline came the increase of families wanting to relocate to the suburbs.
Starting in January of 2021, we began to see a small increase in rentals within urban areas - such as Jersey City and areas in Bergen County close to NYC. We can find comfort in knowing that homeowners are beginning to return to urban areas as restrictions are lifted and the suburbs empty out - but many are still convinced that living in urban areas may not be a practical choice. The transition back to urban area real estate will be slow, although we do see the renters market picking back up in a few different regions, such as Boston and NYC.
The overwhelming abundance of buyers and the consistently low inventory of houses on the market prove that a seller’s market may be our real estate reality well into 2022. In this “COVID Premium” market, buyers can be asked to pay up to 10% above the asking price and sellers have the upper hand. Those that are leaving the city are waiting in line in the suburbs to find their home away from urban life, and the sellers are waiting with open arms.
Have you been considering selling your home, apartment, or condominium? We would love to help you navigate the intricacies of the post-pandemic real estate market in New Jersey and more specifically Bergen County. We are seeing a slow increase in those returning to urban areas, so contact us today before the COVID Premium fades away so we can discuss our next steps in getting your house listed!