The Spring Market Arrives
With cases of COVID-19 steadily declining in north-central New Jersey, the gradual re-opening of businesses and the return of warmer weather, our real estate market has shifted gears and continues to accelerate. As of the end of May, both contracts pended and new listings were on a very positive trajectory in all four regions we studied: Somerset County, Morris County, Hunterdon County and select municipalities within Essex County and Union County. With buyers returning to the market at a steady clip and inventory still well below 2019 levels, this market has some of the feel of frenzied spring markets of years past. As much as we love that feeling, we remain cautious in our optimism.
The Jury is Still Out
It is likely that the activity we are seeing now is the result of pent up demand that has been building for the past few months. When this initial flood of buyers moves through the system we will have a better read on market conditions. Massive unemployment is sure to have some impact on real estate, though we are hopeful that renewed interest in our region from more urban areas will help to offset that.
As always, and perhaps now more than ever, our market varies considerably from town to town. The insight and guidance of a professional real estate agent are more important than ever, and at Turpin we take that responsibility very seriously. Your Turpin agent welcomes the opportunity to discuss the particulars of your unique real estate situation at your convenience, by video conference or any other method of communication you prefer!
John D. Turpin
President
About this Report
Due to the significant shock to the economy caused by the coronavirus pandemic, we are supplementing our quarterly residential real estate market report for North Central NJ with an abridged monthly edition. We’ve studied county-level data in one-month increments to
deliver a more accurate picture of current market conditions, while at the same time providing a sample that is large enough to be meaningful.
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In residential real estate, the most telling metric we have is “Contracts Pended.” These are purchase offers that have been accepted during a given period.
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Homes for Sale” (e.g. “closings”) is a lagging indicator that typically reflects activity from 45-60 days prior.
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“New Listings” will impact inventory levels, creating a buyer’s or seller’s market, and may also reflect seller confidence.