I have a few people that I show my articles to before I send them to the very capable Jewish Link editorial staff and, without fail, they have always blocked me from making predictions. “What can you possibly gain by making a prediction?” they will say. “If you’re right, no one will remember and if you’re wrong it may seem unprofessional or worse.” They may be right and I may come to regret this, but alas, I will be making a prediction about what I see taking shape in the 2022 real estate market.
It’s no secret that interest rates have only one direction to go. We have seen these low rates for so long, it’s hard to imagine another year going by where we don’t experience some type of increase. Every dollar counts, no doubt, but even a modest increase will leave the rates at historically low numbers. This may temper price increases to some degree, but with such high demand expected to continue it will hardly be a game changer.
Buyers in the entry and middle price ranges should continue experiencing more of the same logic-defying housing market, where correctly priced homes will sell out faster than the butter pecan croissants at Patis bakery on a Friday morning.
To me what is most interesting, and is the market range to watch, is the one to two million dollar market. A demographic shift that has long been talked about in the New York suburban market is moving to center stage. In many areas of Bergen County, the population, which moved in during the 60s and 70s, is approaching a post-retirement mindset. Those who are opting to stay, until they can no longer, are making the necessary adjustments to their homes so as to make life more accommodating for older knees and hips. But it’s the other group, the group that is looking to take their knees and hips elsewhere, that will be the market story for our area.
Countless homes were renovated in the 90s and early 2000s, homes with large additions and two story family rooms, homes with built-in desks and cabinets in every room. These homes will be coming on the market two at a time this spring. They won’t be cheap; they will be over one million dollars, but the value will be there. For what it would cost to build a similar house from the ground up given today’s prices, these homes will be a bargain. I don’t see lines around the block for showings in comparison to the entry level or starter home weekend open houses.
This upcoming real estate is certainly less affordable, but for the group of buyers who are currently in their starter homes and have been sitting on the sidelines talking about either new construction or renovations of their own—these buyers should really start paying attention. Your dream home may soon be coming on the market.
Nechama Polak is the broker of record and owner of V and N Group LLC located at 1401 Palisade Ave, Teaneck. 201 826 8809 [email protected]
