Where is the action in this Real Estate Market?

Is the market slow or busy?

We are in a strong seller’s market in Northern New Jersey. On a weekly basis Weichert Realtors Summit office performs an in depth study of each town. Based on the number of new properties for sale and the ones that have sold we are able to determine the vibe of activity.

For example, in Berkeley Heights there are currently 35 houses on the market, of these several have received offers and are in the attorney review phase of a contract. Over the past several years the inventory of homes for sale in Berkeley Heights has ranged from this low point to up to 100. As with any economic equation, the lower supply has created a higher price per home. This is an excellent situation for sellers, but challenging for buyer’s since they may need to exceed the asking price or lose out on a home due to higher bids.

To the buyer’s advantage, there are still low interest rates. Today we discussed the analysis of Springfield, NJ which shows that the monthly payment on a home of average price at the average 2013 30 yr fixed interest rate would have a monthly mortgage payment of $1,383. In 2012 that payment would have been $1,324. Prior to 2012, you would not have that combination of price and interest rate to give you a lower payment until you go back to 1999. So todays’ earned dollar invested in monthly mortgage investment is as powerful as it was in 1999, at typically much higher salaries.