August 2022 Market Update

These past few months I stepped away from marketing to focus on my client’s needs and getting my son off to college. But I have not forgotten about you. I am sure you have been watching the news. The main theme: low inventory and higher interest rates. The question is how will it affect you?

As a seller, you still have a desirable asset that is in high demand and inventory is not increasing. I expect this trend will continue into the spring (and even with rumors of a recession looming, I doubt there will be a mortgage crisis like we saw in 2007 ). We simply do not have enough homes for people who want them. We had about 200 less homes on the market this year than last. In addition, Essex County is not known for its wide-open spaces, thus there is limited new construction to increase inventory. That being said, the rising interest rates have reigned in the crazy bidding wars, so manage your expectations when placing your property on the market. And, because buyers are feeling like they are paying a premium for homes, their expectations are high. So, plan on freshening and staging if you are looking for that premium payout. 

As a buyer, the rising interest rates (up again 75 basis points) may help to dampen the competition. The Fed won’t drop interest rates and may consider raising them once more so buying sooner than later may get you more space in the long run. It is unlikely for prices to drop, they may flatten. Where prices are dropping, is in the nation’s Sun Belt or in regions where there is space to build. But here in the NYC-metro area, land is limited, we are fresh out, and we don’t get the kind of development that Florida, Michigan, Texas or Arizona experience. If you are budget sensitive, I would seriously think about buying in the off season if possible. The late summer months are great opportunities – especially since everyone is away. People are always moving – and you must be willing to look at every property you can. I would also be flexible about location. Reconsider looking in name brand towns. If you do not have to be in a NYC office 4-5 days a week, consider towns that are not on a train line as this pushes up prices. Finally, it’s the “done house” that boosts prices, so use your vision and consider the space and not the finish of the properties. Painting the interior of a house will cost you 15K, buying a painted house will cost you 50K. 

I’ve included the most recent 4BR listings that sold in the past few weeks for some if the towns in my territory. If you want additional information, please do not hesitate to reach out.

So rare to find modern in Essex County! This home hugs the property in the best way possible..A lucky buyer snapped this up after a tough bidding war.

Many home dwellers are quick to transform their basements into gyms, home theaters, or play areas for their little ones—and as you make these decisions, it's important to consider the style and flow of the space. After all, with the right modifications, your basement just might become one of the most trafficked areas in your home. So, shouldn't it look it's best, too?