Typically, at this time of year, in Randolph, there are 120 to 140 homes listed for sale. There are currently only 23.
It is a trend that agents and buyers are seeing across the state due in part to the concerns of COVID-19 – and intense competition for the few homes that are on the market.
“The stock is ridiculously low. Unprecedented, ”said Missy Iemmello, manager of the corporate sales office at Weichert Realtors in Morris Plains, which owns 120 real estate agents in Morris, Sussex, Warren, Bergen and Essex counties.
In the entire state, there were only 23,011 single-family homes, condominiums and condominiums, in addition to community properties for adults available for sale in January. Last January, there were almost double that amount, 41,005 listed for sale, according to a report by the New Jersey Realtors.
Low inventory and high demand are pushing up selling prices, causing homes to sell for tens of thousands of dollars above the asking price and sparking bidding wars.
The average selling price for a single-family home in New Jersey in January was $ 504,585, an increase of 22% over the average price in January 2020.
Many more buyers have a stake in their homes during this increase in the market, unlike in 2006, Iemmello said. “They are financially comfortable where they are. Because of activity and rising prices, it is a great time to sell, but where do they go, ”she said.
Those who are selling are probably retired people who are moving to another state or people who have a second home, for example, on the coast, where they can virtually stay and work. “This is where we see people taking advantage of this market,” she said.
Another reason for the low stock is a moratorium on foreclosures and evictions, signed by Governor Phil Murphy last March.
But Beth Kimmick, managing broker at ERA Central Realty in Robbinsville, doesn’t think there will be a flood of foreclosure listings hitting the market when the moratorium is lifted.
“Everything I read and hear shows that there will be a small percentage of properties that will actually be foreclosed,” she said. “Most people will be able to do this or sell their home and not go into foreclosure.”
So, is this a good time to buy, if you can find a property?
Eric Anderson, of the Alexander Anderson Real Estate Group in Hackensack, says yes – if you are buying for the long term.
“What goes up must go down,” he said. “If you’re looking for a short term, it would be better to rent.”
Some other important findings from the latest trends, according to a New Jersey Realtors report:
- Single-family homes are being sold for 100.2% of the list price, up from 97.3% in January 2020
- Single-family homes are on the market for just 44 days on average, compared to 72 days last year
- Pending and closed sales of single-family homes in January increased 14% and 17%, compared to the same period last year
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Allison Pries can be contacted at [email protected].