Which towns will be the hottest in New Jersey the spring market?
The pandemic has hugely impacted the real estate market in New Jersey. As buyers become more eager to get out of cities, they desired more space and less congested areas, which turned the New Jersey housing landscape upside down.
Demand heavily outpaced the supply in New Jersey last Spring and homebuyers experienced intense bidding wars, which lead to many spending tens of thousands of dollars over the asking price. Or for many, they lost a home and it was snapped up by a more qualified buyer.
As the Spring real estate season nears, New Jersey is bracing to see more unusual trends for both buyers and sellers. Many are expecting the Spring 2021 market to be very busy and active, similar to how the market was in 2020. Buyer demand remains very high, and inventory very low. These factors, combined with exceedingly low home loan interest rates, will be the driving factor behind this market.
One this has changed since the beginning of the pandemic, and that is buyers purchasing homes sight unseen. This means that some have used digital mediums, such as videos, virtual tours, or Facetime, as the driving factor behind their decision-making.
The first part of the Spring Market, February to June, will have around the same levels of demand as 2020. With both winter and COVID being the main driving factors behind low inventory, homes that are priced correctly are selling quickly, often after an intense bidding war. TCS South Jersey expects to see this trend continue through these months.
There are a few things that buyers can do to differentiate themselves and improve their offer, whether that’s through price or terms of the agreement. Some of these terms are below:
- Putting a larger deposit down on the property. Generally, 20% is standard, but the more the better in this market
- Being pre-approved for a mortgage
- Closing on the date the seller chooses
- Adjusting the appraisal contingency by offering an appraisal “floor”
- If you don’t have to sell another property in order to buy the next/li>
A few other ways buyers can improve their offer is by modifying the appraisal and inspection contingencies or allowing the seller to stay in the property for a period of time after closing or extending the closing period. This may seem overwhelming to many, especially first-time home buyers. However, our TCS South Jersey agents can help you navigate these terms and deliver a competitive offer.
Have a property in mind or thinking about selling your home? Whether you have a home in mind and you don’t know how to get started, or if you’re thinking about selling reach out to our team. We’re ready to help you sell or secure your dream home.
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