Why Now is a Great Time to Sell Your New Jersey Home

Why Now is a Great Time to Sell Your New Jersey Home

Thinking of selling your home in New Jersey? Now is a great time to sell. There are far more strong buyers than there are great houses on the market right now.

Local experts agree that New Jersey real estate is recovering strongly. After years of market devastation and a sluggish recovery, we now see that sales volume is sharply up, and prices are rising. And now... it’s a great time to sell a home in New Jersey!

New Jersey Home Sales on the Upswing

In 2013, the median home sales price of homes in New Jersey grew by a projected 5% statewide, according to East Brunswick based market analyst Jeffrey G. Otteau, publisher of the Otteau Valuation Report. The growth took place in the face of Superstorm Sandy, which dragged down the selling price in devastated Jersey Shore communities by as much as 7% in 2013.

Furthermore, the 4th quarter of 2013 was on pace to be the most robust sales periods in the New Jersey since 2007. In October alone, home sales were up 19% compared to October 2012, despite the 16 day government shutdown that month.

Otteau says these positive trends (more homes selling and prices rising), should continue for at least 12 to 24 months. Still, he warns that uncertainty in the national economy and the potential reduction of federal stimulus programs could sour the marketplace.

The Hottest Markets in New Jersey

The hottest markets this past year have mainly been the traditionally desirable suburban towns in North Jersey, like Chatham, Glen Ridge, Glen Rock and West Caldwell, each of which, according to Otteau, saw selling prices for homes increase 8% on average over the past 12 months. Tight inventories in these communities are helping drive up prices. Glen Ridge has only 1.7 months of inventory in the past year (homes for sale in relation to anticipated demand). Glen Rock has 2.2 months of inventory; Chatham, 2.1, and West Caldwell, 2.8. Other North Jersey towns with limited inventory of homes for sale (2.9 months or less) include Summit, Montclair, Wyckoff, Maplewood, Midland Park and North Arlington. Central Jersey as a whole has not been as active as North Jersey and the market is slowest in South Jersey. Overall, the most in-demand homes tend to be in the most highly regarded school districts. 

Search All Essex County Homes for Sale

Why NOW is the Time to Sell Your New Jersey Home

As incredibly hot as the market is, some potential sellers are still holding off, hoping to take further advantage of rising prices. This is not always the best strategy. Otteau feels that New Jersey is in a "window of opportunity" right now, a period when homes are affordable. "It's counter-intuitive," Otteau says, "but the time when a seller can capture the most value is much more likely to be now than later when prices normalize at a higher level that is less affordable to the average buyer."

Buying power, coupled with sustained low interest rates, has fueled a 2 year surge in home sales across the state of New Jersey. Sales volume for the past 12 months ending September 30, 2013 was up 18% compared to the previous 12 months according to the New Jersey Association of Realtors. Otteau says sales volume over the past 2 years increased by an unbelievable 43% over the previous 2 years.

But the window of affordability could sharply tighten before the end of 2015 as prices and mortgage rates make a slow but unavoidable climb. The next year or two will be the best time to sell… unless you can wait a really long time (5 years at minimum) for prices to rebound to the peak level of 2006. The bottom for prices has passed. Buyers who want to move up had better to do so now, rather than wait until prices inevitably go up. Sales prices are predicted to rise roughly 5% again in 2014.

But new concerns could be waiting in the wings. Proposed federal tax reforms could eliminate all second-home income tax credits. Federal stimulus programs could be halted, possibly slowing economic growth nationwide. These dark clouds could provide more reasons to sell soon. Contact us for a free home valuation of your home in New Jersey and learn why now is the time to sell your home!