If you are one of the thousands with plans to buy or sell a property in 2020, (and if are were, I'd love to assist you with that!) you might find yourself wondering just how quickly will we see the real estate marketplace recovery from the previous three months?
A great deal of the time frame will depend entirely on the emotional recovery buyers and sellers experience from the after-effects of shut downs. The speed and efficiency with which businesses have safely reopened and began resuming normal business practices, hours and sale levels will also come into play in determining the trend moving forward.
Another large influencing factor is that the real estate market in our northern NJ area has been experiencing low inventory for over a year, which directly affects sales volumes. This certainly will be part of the length of time it will take to build back up to year-over-year levels. The strength of our ongoing real estate activity, along with the new home building market makes it likely that recovery time will be short.
Other trending influences include historic low mortgage interest rates. Although it is likely that many current owners may look more favorably on refinancing rather than selling and moving up, the strength of our buyer pool could change many minds with the summer season opening. We hope this will prove to be the case; otherwise, we will continue to see restricted inventory levels. That will surely have an impact on the rental market!
All of these conditions taken collectively will definitely effect sale prices for the remainder of this year. If the buyer market remains strong, most sellers should see nice equity gains when they sell. However, if we do see continued lack of inventory that discourages enough buyers from venturing into the market recovery may still occur, as long as small business resumes activity, consumer spending returns to pre-virus levels and the building market ramps up production to assist with increasing housing inventories to entice buyers.
You may be interested to discover how the value of your home is impacted, or explore the homes available for sale? Please visit https://njrealestatehomesearch.com