Thomas McCormack Senior Partner - Broker tom@resourcesrealestate.com
In this moment of constant daily change in the economy, the public health situation and the world as we know it, it seems hardly meaningful to discuss business that occurred “B.C.” (Before Covid) and yet, even in times of change and uncertainty, context is helpful. Market forces that were at work prior to the shutdown do not entirely disappear even while it feels like everything has shifted.
due to a change in financial ability, others may choose to enter: changing markets mean changing players. If transitioning to a buyer’s market, investors will likely enter en masse. Historically low mortgage interest rates will also promote a stronger buyer push.
The new market will favor some property types (e.g. spacious yards capable of both fun & social distancing) over others (e.g. With that preface, we present our market report for 1Q2020. high density developments) and pricing will -- as always -- be a key factor. One thing is certain: despite all the components While 2019 set new records state-wide for single-family unit of “the new normal”, real estate transactions will continue... sales Monmouth County did not with ²/³ of the surveyed Facetime inspections, curbside closings and all. municipalities showing fewer sales than the year previous. In first quarter 2020 this situation Although initially there is an expectation of improved with about half of towns downward pressure on property values, this showing flat or increased sales numbers; is likely to be temporary -- albeit it may take a overall county-wide sales were up by year or two to fully rebound. There is also the over 4% in both units and average sale prospect of a market surge as shelter-in-place price for single-family homes. restrictions lighten and more parts of our dayto-day world reopen. Whether this is a surge due The increased demand seemed to . to the changing conditions or simply a delayed indicate that our Spring market would “Spring” market may be hard to gauge but we be robust especially as inventory was expect renewed market vigor to come by midon the rise. While low inventory was Summer or perhaps Fall. at issue in much of the state, we saw total available homes almost twice that of a year ago when many local professionals Of course, no one has a crystal ball and all will depend on surmised that sales were down because there were not how COVID-19 cases, treatments and vaccines progress. enough homes to sell. As always, your home and your market is specific and as such How this will play out throughout 2020 is yet to be seen with requires specific attention. Proper pricing, market preparation many sellers pulling their house from the rotation and many and marketing tools to facilitate the new virtual sales process buyers observing the quarantine. The shift may favor buyers, are key and we are here to help with all of the above as well at least in the short term, particularly if negotiating with as observe safety protocols throughout. sellers under pressure to sell. Questions? Whether you are looking to buy or sell, we’ve got While some buyers previously in the market may drop out answers. Please contact us and let us know how we can help.
Even in times of change and uncertainty, context is helpful
resourcesrealestate.com Cover image, 88-2 Portland Road, Highlands, new constrution with amazing views, mobile website: bit.ly/88-2Portland
