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.