Residential Market Report Provides Context in Time of Change and Uncertainty
Shrewsbury, NJ: Resources Real Estate, Monmouth County’s award-winning luxury real estate firm, released the company’s most recent The Resources Report for 1st Quarter 2020 single-family residential sales in Monmouth County, NJ, which shows a market in flux even prior to the current Coronavirus shutdowns.
“In this moment of constant daily change in the economy, the public health situation and the world as we know it, it seems hardly meaningful to discuss business that occurred “B.C.” (aka Before Covid),” said Thomas McCormack, Senior Partner and Broker of Resources Real Estate, “And yet, even in times of change and uncertainty, context is helpful.”
The report indicates that while 2019 set new records state-wide for single-family unit sales, Monmouth County did not with 2/3 of the surveyed municipalities showing fewer sales than in the previous year according to Monmouth Ocean Regional Realtors Multiple Listing Service data. In the first quarter 2020 this situation improved with about half of towns showing flat or increased sales numbers; overall county-wide sales were up by over 4% in both units and average sale price for single-family homes.
“The increased demand seemed to indicate that our Spring market would be robust especially as inventory was on the rise,” said McCormack. “While low inventory was at issue in much of the state, we saw total available homes almost twice that of a year ago when many local professionals surmised that sales were down because there were not enough homes to sell.”
How this will play out throughout 2020 is yet to be seen with many sellers pulling their house from the rotation and many buyers observing the quarantine.
While some buyers previously in the market may drop out due to a change in financial ability, others may choose to enter. If transitioning to a buyer’s market, investors will likely enter the fray. Historically low mortgage interest rates will also promote a stronger buyer push.
Agents at Resources Real Estate believe the new market will favor some property types (e.g. spacious yards capable of both fun & social distancing) over others (e.g. high density developments) and pricing will be a key factor.
“The market will continue to be volatile,” said McCormack, “No one has a crystal ball and all will depend on how COVID-19 cases, treatments and vaccines progress. We are already seeing an uptick in buyer activity and expect a rebound of sorts but so many other factors are in play that we will monitor the situation daily and keep our clients well informed.”