Stability Has Come to Bergen County Real Estate
My projection for Bergen County real estate is right on target - our housing market is improving. New Jersey MLS data, bank appraisers and housing reports all say the same thing: We have clearly bottomed out and are in a period of stabilization.
Today’s ratio of homes for sale to under contract is 4 to 1; early in the year it was in double digits. Last spring Bergen County was classified by the mortgage industry as an “area in decline” meaning that values were falling. Appraisers were deducting 1% per month of value; if a home appraised at $200,000 and was closing 2 months later, the appraisal was fixed at $196,000. Bergen County’s housing market is no longer classified as “in decline” and a Valley National Bank appraiser on Monday told me that price depreciation has ended.
Jeff Otteau in his latest real estate newsletter termed the NJ real estate market’s performance “remarkable” and forecast continued improvement. The monthly Credit Suisse agent survey said that for the first time in a long time a majority of agents reported positive home buyer traffic and houses selling quicker.
With all time low interest rates, prices no longer dropping and falling inventory levels, there should be no surprise to find stability in the Bergen County real estate market.
