Thursday, June 30, 2022

We often have to wait long periods of time before the repercussions of new economic policy become apparent, especially regarding issues as significant as the national real estate market. The newspapers and online sources will be quick to find a story (however remote or removed from the rest of the country) to share with you of a market that has begun a dramatic change from just a few months ago. However, by and large, in the Northern New Jersey suburbs demand in the market is still high and prices have not changed in any significant way. That is pretty much what I wrote two weeks ago when we ran the statistics reflecting an upward trend in inventory coupled with three straight months of increasing average list prices.

Something changed, however, when I ran the numbers this week. Inventory went up in Teaneck, Bergenfield and New Milford by almost 23% from only two weeks ago to 124 homes. While this is a continuation of the trend of increasing inventory, albeit in a more significant way than we have seen in quite some time, it was paired with a decrease in average list prices with the numbers coming down to about $766,000.

The story du jour of bidding wars on houses that are priced right is still correct, but we can find more and more narratives of the market returning to normalcy and homes remaining on the market for weeks and maybe even requiring a price reduction before ultimately attracting the right buyer and making a deal.

We will be following these numbers very closely during this time, especially as the Federal Reserve continues to make good on its word of raising the cost of lending until a noticeable decrease in inflation occurs.

Nechama Polak is the broker of record and owner of V and N Group LLC located at 1401 Palisade Ave in Teaneck. [email protected] 201 826 8809.

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