What Will The New Jersey Real Estate Market Look Like In 2021?

As a resident or a potential resident of New Jersey, has the current pandemic put a hold on your plans for buying or selling a property? For many of us, when the pandemic started we thought life would be back to normal within a few months. Yet, almost a year in, and the pandemic continues to have a tight grip on every aspect of our life. For this reason, you may be wondering whether it is time to go ahead with your plans.

Let’s take a look at a forecast for the New Jersey real estate market for 2021. To help us get a clear and concise overview, we will look at the following question;

  • What are prices currently doing?
  • What is the turnover rate?
  • How would we describe the current market?
  • Which areas will get the best deals?

What Are Prices Currently Doing?

Perhaps to the initial surprise of many, the previous year of 2020 saw an increase in listing prices as the year went on. This was primarily down to low inventory, as well as the fact that low-interest mortgages were available. In fact, we could say that during 2020 the New Jersey real estate market house prices saw a reasonable spike. As we edge into 2021 we can expect this trend to continue om a more drastic level. However, as we push into Spring we will likely see more houses come on the market meaning that prices may start to level out. If you wish to sell your house, listing the property sooner rather than later could be very advantageous to getting a good price. Yet, for people wishing to buy a home, if their situation is not urgent it may be very well worthwhile to sit things out a while and see whether prices become more competitive as more properties are listed on the market.

What Is The Turnover Rate?

A high turnover rate is expected for the year 2021, this forecast comes about for several reasons. Firstly, many buyers are now motivated to buy. There is a significant number of people who have been waiting for the pandemic to end to continue their plans for buying their first home, purchasing a second home or relocating. However, as the pandemic has continued their waiting attitude has diminished. As the pandemic starts to ease (something we will all be glad to see!), it is highly likely that we will see more and more motivation to buy and buyers are likely to start to flood the real estate world.

How Would We Describe The Current And Future Market?

In one word, the best way that we could describe the market that we are likely to see as we go into 2021 is ‘competitive’. That’s right, even though there have been some concerns as to a crash or slump in the market, the current trends are showing that quite the opposite is to be expected. As noted above, there is a significant number of people waiting on the sidelines, ready to make their purchase when the property and the timing is right. Couple this with a high number of people who have held off on putting their house o the market due to the current pandemic and you have a match made in heaven.

For buyers, this is quite a sobering thought. Above we noted that there may be a benefit to holding off during the start of the year to see how prices pan out, so to speak when the predicted influx of new properties hits the market. However, such delay may also result in getting into the thick of a competitive market where bids just keep on rising. Perhaps buyers should temper their decision with the properties that they see. If their dream home is currently on the market at a price they can afford, putting a competitive offer in now may secure the property and eliminate the risk of a bidding war once the market really hots up. On other other hand, if the current potential properties are mediocre when it comes to a buyer’s wishes, holding off could help them secure a more attractive property as a wider choice is sure to be available later in the year.

On a positive note, whether you choose to purchase now or to hold off until later within the year, the low-interest rates that ae are currently seeing seem to be set to stay. This is a huge benefit to all home-buyers and makes 2021 an extremely attractive year to get on the property ladder for the first time or to move to a more suitable property if this your long-term plan.

Which Areas Will Get The Best Deals?

We often hear a lot of people talking about how the world we knew before Covid-19 struck will be a lot different from the one that will emerge post-pandemic. There is a lot of truth in such speculation and the New Jersey real estate market will be no exception to that in any way. Those highly-valued city center homes that always stole the limelight for being the ideal property to buy seem to have competition that may just blow them out of the water. Indeed, the pandemic has resulted in countless jobs going online, in fact, perhaps you may be one of them. Are all of these roles going to go back to the physical workplace once the pandemic is over? It’s highly unlikely. Not only have we discovered evidence that many roles which we previously thought to be only office-based are actually well suited to homeworkers but we also have realized that for many people, working from home is now becoming a preferred choice and one that they would rather keep if they were given the choice. The world post-pandemic could easily see many of the jobs that people have currently been working in a virtual way to stay as virtual or home-based roles. This drastic change makes homes in the suburbs a whole lot more appealing.

For people who have properties to sell in the suburbs, it’s great news for their selling plans. There is every chance that 2021 will see a rise in the value of your property as potential buyers get to compare a more spacious house in the suburbs with a more restricted living space in the city. Since working virtually doe not tie people into having to analyze commute times when considering a potential property, those suburb properties are likely to take on a whole new level of attraction for the home buyers of 2021.

For buyers, this is generally good news too. Whilst they may pay more for a house in the suburbs in 2021 than they would have done in 2019, the price is still sure to be considerably less than purchasing the same size of a house in a city center location. All in all, for buyers their search area could become much wider and for sellers, they could find a pleasant increase in property value coupled with potential bidding wars.

The Bottom Line On What To Expect From The New Jersey Real Estate Market In 2021

This time last year life seemed relatively normal for all of us, little did any of us know that entering the year 2021 we would be stuck in the middle of a global pandemic that continues to relentlessly play havoc in our lives. Whilst the situation has put a hold on many peoples’ plans when it comes to buying and selling, we are now seeing increased movement within the world of real estate as well as very positive forecasts for the future months.

Prices of properties have increased somewhat during the year and as we start 2021 these prices are predicted to continue to rise. As more people list their homes on the market and more potential buyers are motivated to act we are going to see a high turnover rate, a positive for sellers who are keen to get their property sold, and an equal positive for buyers who want to have a range of properties to choose from even if this means waiting for several months before they make a purchase. This is coupled with a forecasted competitive buying market, where we are likely to see special interest towards properties in the suburbs which offer improved living space and a quieter area to live and virtually work.

One thing that is likely to be starkly different in 2021 when compared to purchasing a property pre-pandemic is how the buying process will take place. We can expect real estate agents to have spent 2020 getting used to working within a global pandemic and as they enter 2021 they will have polished a virtual service ready for their clients to safely use. Buyers and sellers can expect to carry out most of the process online and physical viewings are likely to be limited to potential buyers who can give clear evidence that they can afford the property and are genuinely interested.

The Real Estate Market In New Jersey, Trends To Expect In 2021

2020 was a year like none ever experienced. Corona Virus went from existing to being all over in one minute. Staying indoors meant that all people who owned businesses had had to shut them down. Another sector of the economy that suffered the blow was the real estate market. In New Jersey, the situation wasn’t much different. At the peak season, the situation had worsened, with most locations going on a total lockdown. Unfortunately, it was a lousy year businesswise. The losses incurred during this period were huge. Well, there is always light at the end of the tunnel. If you were thinking of buying a house in 2020, you should go for it. The idea might sound bizarre, but the experts know better. Read on.

The real-estate market has four principal players who control what happens. These include sellers, buyers, renters, and upcoming sites. Although some of them might appear insignificant, it is good to know that they play a huge role in impacting the turnover of events. All of them have also led to the emergence of trends that have hugely impacted New Jersey’s market.

Sellers.

When the virus came into existence, many property owners had plans. One of them was relocation. However, with all the confusion and low income for some people, moving was not an option. Some of the new places you could go to were on a total lockdown. What is the long term consequence of this action? While people stay permanently in similar locations, the result is a low supply of homes to buy in the market. In an attempt to solve this problem, the government reduced the mortgage interest rates. It was a platform for people to move. However, the provisions served both ways. Most homeowners preferred to refinance and stick to their old homes. It is far cheaper to stay where you are since moving on its own is costly, thus avoiding it. The few that decided to sell their houses didn’t increase the number of dwellings needed within the market. Most of them end up buying newer homes in a similar housing market.

Buyers.

By the end of 2020, mortgage interest rates had hit a new low level like never before. The numbers will be historical. In mid-December, the rate for a 30 year fixed mortgage was 2.67%. The figure was more than one percent lower compared to the numbers in 2019. Surprisingly the situation led to a demand for homes. The pressure was almost blowing roofs. The need for better homes kept increasing. With children homeschooling and most folks working from home, everyone wanted sufficient space to go about their activities. The trend was positive, but unemployment made most people worried. How were buyers going to settle the mortgages with no income? Buyers started shifting areas. Instead of paying more in urban centers, most of them opted to buy in the suburbs. These spaces have similar houses but with more space required and a much calmer environment. With the demand, sellers are going to benefit more in 2021. Buyers are still clinging on to their old house, but the wise ones have already moved. The coming trends might make the tables turn.

Renters.

The rental market in New Jersey has suffered the most from the effects of the pandemic. The impact spread to the larger parts of the country. Property owners had to lose more as the lockdown meant shutting down the retail stores, restaurants, malls, and other departmental stores. Offices had to shut down, letting go of employees while others embraced working from home. The situation led to a cut in the flow of money coming from rental properties. While some business owners could manage to settle their dues in time, many suffered and struggled to meet these demands.
A few had to move out, a more difficult situation. According to the national statistics, only 75.4% of renters managed to make full payment in the last month of 2020. The result for the rest was evictions. The state government in New Jersey embraced the eviction moratorium; otherwise, every renter would get thrown to the street with their property. The case is not permanent, though. When it gets lifted, what becomes of their property? The case will not be different in 2021. Financial struggle is still looming around as normalcy hasn’t returned yet. The speculation of a new wave of the virus will make the situation even worse. The government will have to intervene further. Everyone is clinging tightly to the idea of a vaccine.

Upcoming Projects.

Developments are always a positive sign in any sector. It means there is progress in the real estate market. Through new construction, new urban centers will crop up, leading to a shift in the market. Buyers, sellers, and renters get affected by this situation. All the parties require new projects for them to meet their goals. Builders have not yet relaxed. They have risen to the occasion, and the parties can attest to this fact. As 2021 begins, more buildings are due to come up. There is a level of consistency in this part of the real estate market in New Jersey that is amazing. With the pandemic, most businesses have learned to work with private spaces. Builders are focusing on this direction since the demand is also high. However, the rise of more apartments will decline. The idea has changed as most people don’t have the luxury to move.

Real Estate Trends.

With all the occurrences, there are specific trends to expect in 2021. While some might be favorable, some will hit these key players negatively. However, with an open mind, you can overcome these challenges. If the year 2020 ended, it is proof that nothing lasts forever.

•Growth Of Real Estate Services.

The New Jersey market has numerous real estate services. These firms allow buyers to browse homes and sellers to list the property they want to sell. One of the most renowned is Long Branch. It has endlessly served the market with numerous properties from all over the location. Since most of the work involved physical meetings, the pandemic wasn’t favorable for this approach. With social distancing, every other business had to go online. There are varying ways to go about this course. The first is by working with a virtual agent. The gadget is like a robot but offering the assistance you would get for a much lower price. The second way is settling for mobile closings. Improvements in technology have made it easier to manage documentation relevant to real estate. There are electric signature platforms and online notarizations to make the process efficient. The last way out is working with third-party buyers. They get the house from you, handle any other aspects like inspection and repairs then sell it at an increased price featuring their profits. It results in less hassle.

•Sky Rocketing Home Prices.

The prices for properties are still increasing by the day. While sellers are smiling, buyers are having a bad day after another. Well, nobody has to suffer in the process. For buyers who are looking into investing, the only way is to work with what you have. Buy a house you can afford. It is safer to work with no debts since none can predict the future. Despite how good these new developments might look, do not think about it. Stick to your lane to avoid problems. Your house payments shouldn’t be more than 25% of your monthly income in 2021. Opt for a fixed-rate mortgage for 15 years. The charges for this option are lower than any other offer you will get. Although sellers have a walk in the park, the situation can change at any moment. There is a potential for better profits, which can help you when you want to make purchases. If you are selling your house, ensure you work with a professional real estate agent.

• Limited Options For Buyers.

As the pandemic came, it meant more people had to focus on priorities. The rate of new developments decreased as the turnover of money was also reduced. What this means for buyers is that they have to go with whatever is in the market. Inventory is and will become scarce for the next few months. Money is tight in fees and other payments that are more important. The slim pickings mean that the best options will go before you know it. If you are thinking of buying a house, better act on it fast. The best in the category will attract huge prices. How do you come up with the money to meet this need? Sacrificing some wants is a gateway to making it happen. Give up on the things that aren’t necessary but take a considerable chunk of your income. Also, have an open mind and look in locations outside your borders. You might find a cheaper property. Once you spot something that interests you, get preapproved immediately. Wastage of time means giving the house to other buyers in the market.

With the above trends, maneuvering the real estate market in New Jersey becomes a smoother and straightforward process. Take note of any changes that might come up, though.

Best Neighborhoods to Live in Long Branch

Best Neighborhoods to Live in Long Branch

When you are looking for a town in New Jersey to live in that avoids all the hustle and bustle of the larger cities then Long Branch should fall into your consideration. Here you get access to all the amenities that the east coast has to offer but you’ll also avoid the chaos that is associated with larger cities. You might think but why Long Branch and exactly where in Long Branch should I set up my roots? There are specific neighborhoods that better advantages than the others in the cozy town of Long Branch.

Branchport

First off is the neighborhood of Branchport. If you are looking for a place that is listed in the $300,000+ range then Branchport is your place. The median prices of Branch port for housing purchases comes in at $371,378, while rentals come in at just around $2,000 per month. These prices aren’t too shabby for this being a coastal neighborhood. Branchport might also fall into one of your top spots due to it’s lower crime rate and the older demographic that occupies this area.

Broadway

Next worth mentioning is the Broadway area. If you aren’t afraid of new development areas then this could be something you might like to look into. This area was just granted around $200 million for redevelopment that is going to be allocated to apartments and stores alike. The centralized location will give you access to stores as well as giving you access to the water.

Elberon

If you are looking for a more historic part of Long Branch then check out Elberon. This community gives close access to the beach but has a ton of history behind it. First off is the local train station that’ll give you access to the coast of NJ. It was a hotspot for many past presidents and has the rightly named Seven Presidents Park and the Church of Presidents. Now this is a very higher end part of the town with houses ranging from $500,000 to the millions. You can’t really put a price on the amount of history in this area or the access to the beach.

No matter where you end up in Long Branch, there is definitely a little piece of heaven that’ll suit you. You’ll have access to the beach, ocean activities, and not to mention you are just a hop skip and a jump from major cities like New York City. Long Branch is a hidden gem with much to discover.