My wife and I are looking to purchase property to hold for 5 years then relocate to another state. In North Jersey area it seems like home are way over-valued. We're looking in Morristown area and bid on one home for it to go $90k over asking. It appears to be a clearly defined sellers market due to pent-up demand over Covid, lack of inventory in general for homes in $450k - $600k range, low interest rates and many people moving out of NYC area into suburbs.
Our lease is due to renew in 2 months and I've heard that it may be better to wait till 2021 when prices could drop. Just curious what people think in terms of buying now vs waiting a year when trends could favor buyers more. We're looking to hold onto house for 5 years then potentially sell or rent as rental property when we move out of state.
Currently, yes, prices are overinflated. However, Northern NJ real estate has always been on the higher side. But I wouldn’t bet on the idea that they will correct to pre-pandemic levels next year. While I’m sure there will be some kind of correction, I expect it to be minor as NYC is not going to fully recover next year. We just don’t know the extent of the shift that is taking place in Northeast region.
If you are looking at a multi family, inventory is very low and you will most likely pay a good premium over a single family, which are still overpriced given the current situation. Unless you find a deal, I would hold off on purchasing right now and make an assessment again sometime next year.
Prem, did you or are you in the process of finding property to purchase, if you are let me know.