the staff of the Ridgewood blog
Trenton, N.J. (Jan. 31, 2020)—Demand outweighed supply in the 2019 housing market, according to the year-end numbers provided by New Jersey Realtors. The inventory of homes for sale in the state was down more than 20 percent in December 2019, a continuation of what was seen in 2018.
The demand of buyers outmatched seller activity this year, leaving a slightly unbalanced, but nonetheless strong, market. Affordability has improved with lower mortgage rates, which has helped to offset higher prices. The big question for 2020 is will higher sales prices entice homeowners to list and increase available inventory on the market.
As the number of homes for sale decreased, prices increased, though not at the same rates. The median sales price for all properties in 2019 was $307,000, up 5.9 percent over 2018. Properties are moving at the same rate as 2018, 64 days on the market, and agents report multiple, fast offers on desirable listings.
“We are, of course, concerned that buyer demand slightly outpaced seller activity last year,” said Angela Sicoli, 2020 President of New Jersey Realtors. “But much of what we are seeing in the market is positive—properties moving quickly at competitive rates. We consider 2019 to be a successful year for housing.”
Closed sales for 2019 stayed static, with 117,343 sales in 2019, a hair above the 117,178 sales in 2018. Pending sales are up 3.3 percent year-over-year, a promising sign. Still, along with tight inventory, new listings dipped a bit, down 1.6 percent to 179,306.
Single family homes had a 4.8 percent rise in median sales price, sitting at $330,000 for 2019. But this market segment was also hit hardest by tight inventory, dropping 22.8 percent for December 2019, with just 25,717 homes for sale that month.
Realtors will always paint a picture that suits them.
Realtors will tell you it’s always a good time to buy/sell. They make a commission either way so they are always happy.
In Ridgewood there has been a decline in home values for houses over $1 million dollars. They sit longer and need multiple price cuts. Buyers can get a good deal if they are willing to pay $45k in taxes. Newspapers say that housing prices have recovered from the crash but that’s not true for us. Houses that cost $2 million in 2004 are still sold at a loss – in spite of home renovations. Realtors need to maintain the notion that Ridgewood homes are desirable and have buyers (they love their Commissions!). I would love to hear a realtor explain what he/she sees as the reason for the decline. High taxes? No SALT deduction? No one wants a big house anymore?
How many more tax appeals will the Village have? The Village has to pay their bills so the tax burden will eventually be shared with the under $1 million homes. Be careful what you wish for with high density housing, Parking garage, Library “Reimagine” and the High School PAC. The developers will benefit the most from these projects and the residents are on the hook for the bills.