OK, this time of year again. New goals, new hopes and dreams. What are your resolutions? Just to share some of mine:
Release of all the hostages.
Real peace for Israel.
Health and happiness for my family, friends and community.
World to reawaken with clear logic who the real perpetrators are.
Stop antisemitism … we’re on your side of democracy.
Continued success.
On and on…
We have a new mayor in Teaneck, Mark Schwartz. Congratulations! And a new United States president as of Jan. 20. We all look forward to improving the lives of all constituents with overall guidance and solid leadership with visions of true democracy.
OK, the realtor in me seeps out, and I’m wondering if you plan to add to your resolution list to either buy or sell this coming year? Conditions in market trends are cyclical, yet housing needs are always an important fact of life.
Let’s talk about the transition where the tides are turning and the buyers are starting to see relief for purchases. Although I hate to sound pessimistic, the latest news is concerning yet there is a glimmer of hope on the horizon.
Nationwide, the year closed out with the strongest seasonal slump since January 2023. Homes actually lingered on the market for a surprising 70 days, up from 62 in November. Actually, December 2024 was considered nationwide the slowest festive season in five years. Inventory also plummeted 8.6% from November, which was the most drastic drop in nearly two years.
Mortgage rates reached a six-month high, hitting 6.91% for the average 30-year fixed home loan for the week ending Jan. 2. I did have a number of clients in the fall who insisted on waiting to purchase their home after the election was over with the proviso that they were convinced mortgage rates will drop if Trump is elected. Well, that prediction was incorrect since rates escalated afterwards. Mortgage rates, in fact, rose each of the first two weeks in January so the prediction of waiting was deflated. And I have cautioned to count our blessings since we dare reflect back to 1981 when mortgage rates were at 16.63% high. The delay with a plan proved to be counterproductive but maybe it was just an excuse to delay home ownership altogether.
The new barometer for household income affordability nationwide has evolved into a higher level of criteria. The new required income to afford the typical starter home is $70,164, up more than 50% from the year 2019. However, typical income levels have also risen proportionally, though not at the same pace. Median household income was $80,610 in 2023, up 17% from $68,700 without adjusting for inflation.
The inventory levels of home sales are projected to climb, even above the typical seasonal boost. Last year home prices surged at a 4% rate, up from 1.1% in 2023 despite the cumbersome high mortgage rates, while the median home price in December inched down by 1.8% year over year, and projects are being made (without guarantee) that mortgage rates will average 6.3% through 2025.
So, a new resolution to sell or buy? You can’t only count on market indicators. Purchasing a home is not a science or stock commodity, it’s an emotional passion of need with the right timing and financial factors driving your goals and dreams even after the new year.
Let’s consider our locale at this turn of the year time regarding the number of homes sold and the average sold price comparing 2023 to 2024.
In Teaneck, the average sold price from 2023 at $632,842 increased to $691,049, up 9.2%. In Bergenfield, 2024 versus 2023 is reported from 2023 at $601,767, which rose to $653,844 with a 8.7% increase. In New Milford, average price homes sold from $612,207 to $683,603, up 11.7%, and Englewood saw a whopping 32% increase from 2023 to 2024.
Countywide, the number of solds has decreased by 4.5%, with factors including lower inventory, reluctance to sell due to costs of another home, and high mortgage rate. And, statistics of number of solds have also decreased from 2023 at 7,898 to 7,539 homes, down by 4.5%.
In contrast, the number of homes sold in our locale of Teaneck decreased from 287 to 254, down 11.5%; New Milford, homes sold increased from 98 to 111, a 13.4% increase; Bergenfield, down from 156 to 143, an 8.3% decrease; while Englewood had an increase of 6.7% sold from 193 to 204 number of solds.
This is the bigger picture which may be helpful or not, depending on whether you are the buyer or seller and what locale of interest is another factor.
Your professional realtor can provide information on market trends, statistics and projections to help you make prudent decisions. Either this data is making you dizzy or encouraging your next move. Housing choices are yours to make with the right planning.
Are the tides changing somewhat? Next year at this time we’ll report the year’s data all over again, which can be good news or bad. Will buyers have a better shot at winning their bids this year? There seems to be relief on the horizon. And, remember, home is “where your heart is” … so go for it!
Ruby Kaplan is a realtor licensed in both New Jersey and New York. Visit rubykaplan.kw.com for more information. The Ruby and Bobby Kaplan/Keller William Town Life team will promote your home with the best of social media and create alerts for your criteria of housing needs. Your housing needs are our priority. Ruby can be reached at (201) 314-4152 or on her cell at (917) 576-4177 or at [email protected].
