The New Jersey real estate market is set for an interesting 2024. Although there are still challenges for both homebuyers and sellers, real estate trends suggest that the rest of the year could see an increase in transactions in areas such as Essex County. The biggest challenge is still high interest rates, however, there are indications that this will temper as the year progresses. When you include a rise in inventory in areas like Essex and Bergen County this could point to a rejuvenated market for the rest of 2024.
A Balanced Market
The real estate market in Essex County is balanced with generally enough homes to meet demand. At the start of the year Essex County saw a considerable increase in housing stock which rose 7.43%, which added 376 homes onto the market. This goes some way to address one of the biggest challenges for homebuyers, the lack of houses on the market for sale.
Interest Rates
High interest introduced in the first quarter of 2022 hit the US real estate market hard. A measure brought in to cool an overheating market, high-interest rates caused many areas to stagnate in appreciation and caused others to depreciate. However, many analysts predict that throughout 2024, interest rates will lower. The Federal Bank itself has predicted it will lower interest rates from around 5.50% in early 2024 to around 4.6% by December.
While still relatively high, this will have a massive impact on the buying ability of homebuyers. This means that Essex County will have the required housing stock at a time when interest rates are falling and buyers are more capable and willing to buy.
It is interesting to note that though the market is balanced, homes have sold for above their listed value, sometimes by nearly 3%. At the same time, there has been a leveling out in listed prices, which have sometimes wildly exceeded what buyers have wanted or been willing to pay. With listing prices more closely matching buyers valuations, we can expect to see greater interest and quicker closing times.
Knock On Effects
With interest in the Essex County real estate market likely to heat up throughout the year, there will be effects on other parts of the industry.
As we said the Essex real estate market is balanced, but is likely to become more competitive. Homeowners looking for an edge in the market or wanting to ensure that their properties go for top dollar may be looking to hire professional staging services. Showings and open houses will also become more digitized, so expect to see more 3D house tours, property drone videos, and digital staging.
Get to know more about these real estate trends for your property investment. I am Frank DeZao, a realtor specializing in properties for sale in Essex, Passaic, Bergen, and Sussex counties. With my expertise, I’ll show you the best neighborhoods that will suit your real estate needs. For property inquiries, give me a call at 201.953.9376 or send me a message here.