http://www.sellingbergen.com
6/5/25
As always, local real estate markets aren’t autonomous systems impervious to outside factors; rather they are an amalgam of local, regional & national factors. 2024-2025 has seen a stunning & unprecedented election & re-election of Donald J Trump. We have had complete & total over-haul of former economic & geo-political trade agreements, unprecendented audits of national budgetary spending & renewed committments to rebuild manufacturing infratructure, within the US.
In the wake of a post-pandemic migration out of cities into suburban areas, the country saw real estate prices surge with high demand & low inventory levels.
The usual inverse relationship between interest rates & home values no longer exists, as both prices & interest rates have soared since the pandemic.
Interest rates as of today, 6/5/2025 are 6.79, a drop of 2 basis points, although still more than double the mortgage interest rate from 4 yrs ago in 2021. The current administration is lobbying the Federal Reserve to lower interest rates to stimulate the housing market, as volume has stagnated in major areas compared to historic data.
The stock market has seen mild gains & moderate volitilty thus far in 2025, further impinging on the real estate market to perform better than it is.
Regionally, there are downturns in the job market & real estate markets due to unprecendented environmental disasters. States like Florida, California, Kentucky & North Carolina have seen unusal & catastrophic events, whose impact stretches beyond the real estate. As a result, their has been an unforseen stress on the insurance industry, which in turn, further negatively imapacts home-owners & prospective buyers.
HOA’s have been a hotbed of controversy, as things like legacy inspections, assessments & increased fee’s are harshly burdening home-owners in those related communities. The aformentioned has caused continued migration but not necessarily resulting in home buying. The rental markets, intergenerational & alternative living arrangenments have also impacted real estate.
Locally & specifically throughout New Jersey, we have seen an unprecedented boom in multi-unit residential or mixed use developments. This has had a major impact on local real estate markets. In the Northwest region of Bergen County, the current average list & sold price of a home is currenly inching towards $900,000.
This coupled with a near 7% interest rate has knocked out first time home-buyers & many from other areas with lower medium priced homes who would’ve been potential purchasers.
What has been the result? Although sold inventory is holding at 104% yr over date, the overall days on market has increased, which is causing inventory to increase.
Typically the increase of inventory portends lower “sold” prices.
We will see.
As always, when looking for a Realtor Extraordinaire, who knows the ins & outs of several markets throughout Bergen County & who has been buying & selling properties here, since 2012, call Beverly Knapp: 201-800-2119
http://www.sellingbergen.com
Bergen County Real Estate 