Usually there are 120 to 140 homes offered for sale in Randolph this time of year. At the moment there are only 23.
This is a trend that agents and buyers across the country are partly driven by COVID-19 concern – and the intense competition for the few homes on the market.
‘The stock is ridiculously low. “Unknown,” said Missy Iemmello, office manager of the Weichert Realtors corporate sales office in Morris Plains. 120 real estate agents have businesses in Morris, Sussex, Warren, Bergen and Essex.
Across the state, there were only 23,011 single-family homes, townhouses and apartments and communal properties available in January. Last year in January, there was almost double the amount, 41,005 for sale, according to a report by New Jersey Realtors.
The low inventory and the high demand are pushing up the selling prices, causing homes to sell for tens of thousands of dollars over the asking price and offering wars.
The average selling price for a single family in New Jersey in January was $ 504,585, a 22% increase over the median price in January 2020.
Many other buyers had shares in their homes during this increase in the market, unlike in 2006, Iemmello said. “They are financially comfortable where they are. ‘Because of the operations and the rising prices, it’s a great time to sell, but where will they go,’ she said.
Those who sell are probably pensioners who move out of the state or people who have a second home, for example on the shore, where they can virtually go and live. “This is where we see people taking advantage of this market,” she said.
Another reason for the low inventory is a moratorium on negatives and evictions, signed by Governor Phil Murphy in March last year.
But Beth Kimmick, broker manager of ERA Central Realty in Robbinsville, does not think there will be a flood of listings on the market when the moratorium is lifted.
“Everything I read and hear shows that there is a small percentage of properties that are actually excluded,” she said. ” The majority of people will be able to make it up or sell their home and not become negative. ‘
So is this a good time to buy if you can find a property?
Eric Anderson of Alexander Anderson Real Estate Group in Hackensack says yes – if you are buying for the long term.
“What goes up must come down,” he said. “If you’re looking for a short term, it’s better to rent.”
Some other important findings from the latest trends, according to a report by New Jersey Realtors:
- Single homes sold for 100.2% of the listing price, compared to 97.3% in January 2020
- Single homes are on the market for only 44 days on average, compared to 72 last year
- Pending and closed sales on single-family homes in January are both 14% and 17% higher, compared to the same time last year
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Allison Pries can be reached at [email protected].