If you’re looking for information on the Ridgewood, New Jersey real estate market and a sales trend report for 2013, you’ve come to the right place. As the year comes to a close it is always good to look back and see what factors caused fluctuations in the market and what trends we can expect for the next year. At Tarvin Real Estate, we’ve created our market snapshot to give you the best idea of the community’s trends and think you’ll find this blog post to be a great supplement to that snapshot. Let’s take a look at the Ridgewood NJ 2013 home sales trends and how the real estate market fluctuated throughout the year.
Although existing home sales saw drops in the later part of 2013 (mainly in September and October) likely due to higher mortgage rates, the 16-day partial government shutdown and a limited supply of homes on the market, the overall report for Ridgewood NJ 2013 home sales trends was good. In fact, by September 30th, Tarvin Realtors led the prestigious Ridgewood market with $95.4 million in closed sales. This number represented 22 percent of the market share, with the nearest competitive brokerage closing $88.9 million.
Let’s take a look at some of the factors that came into play.
- Interest Rates vs. Home Sales: Mortgage rates began to rise during the last week of May and have continued to steadily increase all the way to the close of the year. While rates are still historically low, many economists believe that even slow rate increases would slow sales, and they did. During the fall, home sales began to slow with home sales falling 3.2 percent nationally in October alone. Interest rates will be important to watch in the New Year.
- Interest Rates vs. Prices: Particularly in more expensive home markets like Ridgewood, New Jersey, higher interest rates are testing sellers’ ability to ask for higher prices. More importantly, however, is how this affects inventory. As prices level out, inventory is becoming slimmer. We should watch for a blossoming buyer’s market in the New Year if this trend continues.
- Inventory: While inventory is declining, there is one high point to consider, and that is new construction. In fact, builders are on track to start the largest number of New Jersey homes this year since 2007. This signals the revival of new-construction, which was severely limited since the 2008 financial crisis. This is something that should be watched as the New Year approaches and will give buyers a breath of fresh inventory to choose from.
- Where are the Foreclosures? Nationally, the drop in the share of homes selling due to foreclosure is a big reason that price gains have come up this year. With a limited supply of foreclosure inventory, sellers were able to ask higher prices for there homes. One statistic from the National Association of Realtors indicates that distressed sales accounted for 15 percent of sales in June 2012, down from 19 percent in May, and the lowest since NAR began tracking this category in October 2008.
- Investors vs. the Housing Market: Investors have been taking advantage of the dip in the housing market since it began back in 2008. While they are primarily focused on foreclosure inventory - one of the reasons foreclosure inventory has lowered - they are also looking for great deals in the market. This trend has caused the inventory supply to shrink. We should expect investor buys to continue throughout the New Year.
These are just a few of the indicators that we watch at Tarvin Real Estate to ensure we are keeping up with the Ridgewood NJ 2013 sales trends - and sales trends for the surrounding communities. We always stay on top of market data and statistics to ensure that we can provide the most knowledgeable and comprehensive advice to our clients and colleagues, and look forward to sharing that knowledge and experience with you.
Whether you’re looking to buy or sell in the Ridgewood, New Jersey real estate market, please do not hesitate to contact us at your convenience to discuss your particular circumstances. We look forward to hearing from you and welcome the opportunity to earn your trust and lasting business. Connect with us today to get started and Happy New Year!