January 2023 Housing Market Update

Bergen County Housing Market Update for January 2023

Bergen County Market Overview

If you live in Bergen County and have been getting your housing market update from the national news then you are misinformed because what is happening in our area is not reflective of the rest of the nation and vice-versa.

When interest rates were drastically lowered during covid, the whole nation became a seller’s market overnight, it was amplified in our area where we already had an inventory shortage, but we were experiencing what the rest of the country was. Interest rates are not location specific, so when interest rates began their climb many buyers in other parts of the nation halted their search. The sudden drop in demand started to balance sale prices and the cost of homes began to decline elsewhere. Unfortunately, in Bergen County we still have tremendous demand, so we did not experience this reduction in sale price.

Looking at the data below which was compiled by the NJMLS as of December 12, 2022, you can see year over year November experienced a -18% and October experienced a -24.8% reduction in listings. This means there was less inventory than there was the year before. You can also see that homes sold for more (4.1% in November and 7.1% in October) than the previous year. In Bergen County, inventory is on the decline and prices are still on the rise. Yes, the rate at which home prices are increased slowed dramatically, however, they are still on the rise and we have yet to see them fall like other parts of the country have.

View the full 2021 vs 2022 housing market statistics as per NJMLS dated 12/12/22.

Inturperting the Data

Buyers

Yes, interest rates have gone up significantly. However, if you can afford to purchase, even if it is to purchase a smaller home or a home in a less desirable neighborhood than you had been looking at, this is a great opportunity because you have less competition. While we are still seeing bidding wars we are not seeing homes go for as much over asking as they had before. More importantly, the terms have changed, it is not automatically expected that buyers will waive appraisal and partial inspection, and completely give in to the seller’s every demand the way it was in the past. When rates drop, you can always refinance, but remember if you are waiting for rates to drop to purchase, so is everybody else.

Sellers

While it is still a strong seller’s market we have already seen the terms shift in favor of buyers. Based on the rest of the nation and expert predictions, it is logical to believe that increased rates and economic struggles will lead to decreased home prices in the future. If you are looking to sell, specifically if you are looking to move out of the area, let’s get your house on the market ASAP!

Renters

Rent has increased over 50% since the pandemic. You are paying 100% interest and building 0% equity. Give me a call and let me get you in touch with a loan officer. Once you understand your options it most likely makes sense to buy.