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Bidding Wars are Back!
If you’ve been sitting back, waiting for the housing market to improve, it’s time to get your ducks in a row. The housing market is advancing, and there’s real proof to be seen. It’s not just in the numbers, but also in the bidding wars that are taking place across the U.S. These wars are bigger and badder than ever, with some homeowners watching their homes being sold for more than what they asked for.
What’s the big deal with bidding wars in the first place?
Currently, there is very low inventory out there, so for people looking to buy, there’s not much to choose from. Homeowners are still holding on to their properties and waiting for a better market, contributing to the limited inventory. When a family finds the house they want, they’re not afraid to fight for it, which may mean paying more for it. They know they can’t just turn around and find something comparable within a few days or weeks, so they have to be aggressive.
That’s where the bidding wars come in. And, for homeowners, this can mean more money in their pocket as well as a quick sell time.
Bidding wars are also beneficial for the housing market at large. These bids create buyer activity; after all, only one person wins. That means the other two or three or five people bidding on the house will continue looking for another comparable home, and this continued activity pushes more people to list their homes and ask higher prices.
It’s not uncommon for homes in New Jersey to see five, six or even seven bidders on a house. Since New Jersey has a prime location, with some counties a mere 20 minutes from NYC, the suburbs remain a great place to buy a home. And, this is what fuels bidding wars even more. Interest rates and housing prices are slowly climbing back up, which means the “best time to buy” is behind us. Buyers know that their window of opportunity is short, so they must buy NOW to get the best rates and home prices.
Bidding wars are created whenever demand is high and supply is low, and this can quickly change at any time. So, whether you’re interested in selling or buying, the market is hot right now. It’s a win-win for everyone, and we can only hope this trend will continue.
With Manhattan Homes on the Rise, More People are Looking to Buy in the NJ Suburbs
For the first time in decades, U.S. cities are growing faster than the suburbs. And, it’s no surprise why. With a tough economy and even tougher job market, it makes practical and financial sense to stay close to the city where job opportunities are more plentiful. But, just because this idea may seem great in theory doesn’t necessarily mean it makes sense for all people. Living in a city like NYC is costly, and fortunately, it’s not the only smart choice. Thanks to the surrounding suburbs of New Jersey, it may be the best financial choice to live outside the city, getting the most for your money.
According to a recent survey by Miller Samuel, it’s becoming more difficult to purchase a non-luxury home. (Non-luxury homes are those that cost less than $3 million.) The number of non-luxury homes has dropped by more than 36 percent, leaving people with far less to choose from. For instance, the average one-bedroom apartment in Manhattan is $1.35 million, and the average two-bedroom apartment is $2.63 million. Basically, any apartment with three bedrooms or attractive features will be included in the luxury market, which accounts for the majority of Manhattan homes.
There is a better option, and that is living in New Jersey. Consider that the median price of a single family home with all the bells and whistles is $360,000 in New Jersey. And, with counties like Essex and Hudson, you can live just 30 minutes from NYC, making it possible to take advantage of job opportunities in the city. Even though the cities are seeing growth, New Jersey counties are still experiencing steady growth because of their accessible location to New York City.
In addition, the average one-bedroom Manhattan apartment has gone up 7.8 percent from year-to-year, while the average two-bedroom has gone up 10 percent. New Jersey properties are climbing as well, but as with any city-to-suburb move, you can get so much more for your money. Those looking to relocate may find that moving to the suburbs of New Jersey makes both financial and practical sense, and the commute to work is very doable. It’s definitely something worth considering, especially since now is still a great time to invest in a home thanks to low interest rates and housing prices.
