Zillow, an online real estate site, recently released a study that listed the markets for sellers and buyers in the United States. The study showed that there is an east/west divide. Basically, if you’re on the West Coast, it’s a seller’s market. If you’re on the East Coast (or Midwest), it’s a buyer’s market. Obviously, if you compare New Jersey to California, there’s a lot of difference, and not just in terms of miles. Things are different out there. But why is one coast showing one market, and the other coast an entirely different market?
For starters, there are relatively strong job markets on the West Coast, which is helping to create more demand. Since there is a limited supply, this is causing a rapid appreciation for homes and giving sellers the edge. And, housing prices and interest rates are still favorable, so some buyers want to buy NOW. They’re willing to pay a bit more for a home because they know it’s still a great deal, and the sellers get to take more of a profit than they would have a few years ago.
Here in New Jersey and our surrounding areas, however, the housing market is appreciating more slowly. Homes are staying on the market for a bit longer, and this gives buyers the edge. If a seller wants to take advantage of the market and sell off their existing home, they’ll be much more willing to take a little less and move on rather than holding onto the property. This isn’t the case in every township, but it is the picture for things at large.
So, what can you be looking at this fall? It depends on who you are. If you’re the buyer, then you can expect to have the upper hand, and you may be able to land your NJ dream home by asking the seller to come down in price. If you’re the seller, on the other hand, expect to have your home on the market a little longer and perhaps have to lower your asking price. Or, you could always wait for that perfect buyer to come along, which isn’t asking too much in this market. New Jersey does, after all, have unique, one-of-a-kind homes.