Here’s your Ridgewood Real Estate Market Report as of early November 2020. The heated sellers market continues in Ridgewood during this very eventful last quarter of 2020. At the same time, this busy market means some exceptional properties have become available which is good news for buyers, too!
Delayed Spring Market Drove Sales through October
The partial shutdown in March and April (caused by the pandemic) delayed the traditional Spring real estate market in Ridgewood. Once showings and open houses resumed in late Spring, the pent up demand pushed the market into overdrive. The market continued to gain energy and momentum through Summer and into the Fall. Currently, the heated market continues to drive forward fueled by the low interest rates and steady demand.
Why is Ridgewood in Demand?
Since people have been working remotely, extra space and more square footage is now a real necessity for many – especially those living in apartments. Consequently, many buyers have accelerated their plans to move to suburbs in search of more space. As a result, demand for single family homes Ridgewood has increased dramatically over the last few months.
Currently, Ridgewood home sales remain strong while the local housing supply strives to keep up with demand. As a result, competition for the well priced properties has led to to multiple offer situations and some bidding wars. Not surprisingly, many homes have gone under contract very quickly and sold at list price or above.
Sellers Market, but Good News for Buyers, too
Although the very strong demand has created a sellers market, there is still good news for buyers with the exceptionally low interest rates for the foreseeable future. Additionally, homeowners are now very motivated to list their properties for sale as soon as possible to take advantage of the busy market. Hopefully, as homeowners accelerate their plans to sell, the supply of new listings for buyers will increase thus sustaining the healthy market through the end of 2020.
A look at the Housing Stats for the Ridgewood Real Estate Market
Supply vs. Demand – The Absorption Rate
As a reflection of the heightened demand and the very limited inventory of homes, the absorption rate by the end of October was still very low, only 2.15 (calculated in months), but slightly up from September’s absorption rate of 2.04. These very low absorption rates reflect the imbalance of supply and demand for homes and indicates a strong sellers market in Ridgewood. However, the slight increase from September to October reflects additional listings coming on the market which is good for buyers.
At the end of October when the 2.15 absorption rate was calculated, there were 65 active listings. Therefore, based on the fact that 362 homes closed in the previous 12 months, there was still just over a two months supply of listings on the market. (For comparison, at the end of September the absorption rate was 2.04 months based on 59 active listings and 347 homes closed the previous 12 months).
By looking at absorption rates (the mathematical representation of supply versus demand) you can better understand how many homes are available in a give market and how long they are taking to sell. A six month supply of homes is considered a balanced market – when the number of listings roughly equals the number of buyers. Rates over six months generally represent a buyers market while those below represent a sellers market.
What does this Ridgewood real estate market data mean?
Sellers Market Continues but Some Signs of Loosening
With only 2.15 months worth of inventory, Ridgewood continues to experience a sellers market. (Remember, anything less than 6 months of inventory is considered a sellers market). Although, the slight uptick in the absorption rate from September to October may signal a trend of more listings and/or less competition from other buyers for the same properties. If you’ve been thinking about selling your home or looking to move to a new one, now is a really good time. Don’t wait to take advantage of this market.
Opportunities for Buyers – Some Exceptional Listings Hit the Market
While the sellers market has been good for homeowners in Ridgewood, buyers have also seen some benefits from the fast paced market. Those who have acted quickly have been able to take advantage of the selection of high quality, renovated homes for sale, and amazing listings continue to come on the market every week.
Some gorgeous properties have come on the market in the past few months – but they’ve gone really fast. Believe it or not, some listings are sold before they go to Zillow or Realtor .com or other websites. Plus, there are a few exclusive listings not even advertised on the MLS. For this reason, it’s really important to work with a good local Realtor who really knows the market – I can help you!
Do you want a real advantage during your home search? Don’t Miss the Good Listings
Do you want the advantage of knowing about the hot new listings and exclusives? Call or text me, Elizabeth “Liz” Thauer, Realtor at Tarvin Realtors at 201-207-3900, email at firstname.lastname@example.org.
Median Sale Prices in Ridgewood
Monthly Median Sale Prices and Units Sold and Year over Year Comparisons
According to the New Jersey Multiple Listing Service (NJMLS), 34 single family homes in Ridgewood sold during the month of October (down slightly from 38 in September and 56 during the month of August). The median sale price for the 34 homes sold during October 2020 was $815,500 which was 3% higher than the $794,500 median for the 22 homes sold during October 2019.
Year to Date Median Sale Price
In addition, we track the median sale prices for the year. The median sale price of all 317 homes sold so far this year is higher than it was at the same time last year. As of November 1, 2020, the year to date median sale price was $851,000. Last year, for comparison, the median sale price was $765,000 based on the 289 homes that sold from January 1, 2019 to November 1, 2019. That was an 11% YoY increase in the median sale price.
Looking back over this unusual year – Especially 3rd Quarter 2020
When comparing 2020 3rd quarter to the same period in 2019, the dramatically higher median sale price revealed a very heated market through this September. For example, during the 2020 3rd quarter, 137 single family homes sold. This unit sold number was up over 16% from the 2019 3rd quarter when only 118 homes sold. In addition, the median sale price for homes sold in the 2020 3rd quarter was $925,000. For comparison, in 2019 3rd quarter the median price was $758,125. This significant year over year median sale price increase of 22% reflected heavy demand for homes in the Ridgewood during the 3rd quarter of this year compared to 2019 3rd Quarter.
As reflected on the chart titled “Ridgewood Median Sale Price”, by the end of the 2020 3rd quarter the 2020 median sale price climbed to $858,250 (homes sold from 1/1/20-9/30/20). For comparison, the median sale price during the same period in 2019 was $760,000 (homes sold from 1/1/19-9/30/19). This was a 13% YoY increase in median sale price.
As a refresher: the median sale price is the middle value in the list of all the sales prices in Ridgewood. (Half the properties were more expensive than the median and half were less expensive). On the other hand, the mean sale price is the average of all property sales taking into account both the very high and the very low sale prices which can sway the mean while having little effect on the median number. Therefore, the median sale price is a better indicator of the market.
Information based on data supplied by the New Jersey Multiple Listing Service (MLS), which does not guarantee its accuracy. Data may not reflect all real estate activity in the market.
What does this mean if I’m buying a home?
Some Amazing Properties have been Hitting the Market
While increased sale prices benefit sellers, home buyers should not be discouraged from jumping into the Ridgewood real estate market. In fact, this is a great time to find your dream home because sellers are really motivated to list ASAP to take advantage of the busy market. Great listings are still coming on the market everyday – even as we approach the holiday season.
Just to be clear, not all homes are not selling for 11% more than they were last year. Instead, the increased median sale price indicates that more homes at the upper end of the market are selling this year. Plus, it’s important to remember that the traditional Spring market was delayed for at lease a month due to the pandemic. As a result, the real estate sales season has continued later into the Fall. Even though the homes are selling at a rapid pace, the Fall market is continuing to provide a steady flow of new listings. Plus the low interest rates are offering buyers more purchasing power in the market.
Wondering what your home might be worth now? Find out instantly with our 15 second home value calculator.
In addition, I’m always available to talk about the Ridgewood real estate market. If you are interested in finding out what your home might sell for in this market, don’t hesitate to reach out! Call or text me, Elizabeth “Liz” Thauer, Realtor at Tarvin Realtors at 201-207-3900 or 201-444-0690, email at email@example.com