Bergen County Real Estate Update

August 20, 2015

Mortgage

As America continues to pull itself out of our most recent financial crisis, the housing market is being watched very closely as an indicator of successful recovery. As supplemental services such as junk removing and painting are gaining steam, we can tell that the housing market won’t be far behind. Across the nation’s builders are back at work. People are beginning to move again and houses are indeed selling. It does seem however, that these effects are still finding their way to us here in Bergen County.

 

Average Home Price: $413,700

Average Home Price

(Source: Zillow)

The average home price in Bergen County is down 1.6% since last summer. This drop is not meaningful enough to encourage selling but it does make for an optimistic buyers market. According to the same website, the price is about to drop another 1% in the next year. That means that buyers should keep an eye on the market and be ready to purchase before the market follows the national trend upwards.

Within Bergen County, the city of Ridgewood has houses selling the highest at an average of $691,100. Fair Lawn is coming in last place within the county with the average sale price of $355,500.

Average Rental Price: $2,100 Per Month

The average single bedroom unit price in Bergen County currently costs $1,661 per month to rent while the average rate for a 2 bedroom unit is $2,693. Both rates are about, on average, $400 cheaper per month than their equal sized counterpart in New York City.

This means that although the market is somewhat stagnant with homes slowly losing value, home owners should be taking advantage of their proximity to New York and capitalizing on their ability to command lower rental rates. Renting out a home you are not living in for the next year or two will definitely cover your mortgage payment while you wait for home values to begin climbing back upwards.

Average Time on Market: 81 Days (Activerain)

In Bergen County, houses are on the market for an average time of 81 days. Being below 3 months is not indicative of a high demand market. Obviously houses that are priced to sell quickly are moving at a higher rate, but this is also directly affecting both the average sale price and the average time on market. If you are listing your house to sell before the end of the year be prepared to wait in order to get the price you are looking for.

Average Mortgage Rate: 3.75% APR

market average

(Source: Zillow)

The average mortgage rate in New Jersey is currently 3.75%, which is actually dead even with the national average. The rate has dropped about .25% since this time in 2014 and is currently dropping. This is a motivating factor for purchasers but with prices sloping downwards they may wait for a better price.

Summary

In Summary, Bergen County is currently in a stable environment. Home values may be slightly declining however signs from around the country indicate that better days are ahead (for sellers). Buyers should heed my advice and aim to purchase before values start increasing. Renting your home always comes with complications such as property management and renter’s insurance but if it is feasible, home owners should consider renting their house out and see what happens in the market over the course of the next year.

Matt Lawler

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