Ask Elizabeth: Market View

Local Update 

Currently in Hudson County inventory remains low, prices remain high at record breaking levels, and we are starting to see an uptick in new listings which this season traditionally brings. The rental market remains strong with multiple offers and listings (for both rentals and sales) moving very fast. Current listings are going over list price and usually into bidding wars. 2 BR condos listed under $1M have been attracting multiple offers and in many cases are going into contract 2-12% above the list price in Q1. Brownstone listings are moving fast and even homes requiring a full renovation have gone into contract for 9% over asking. 

National View

At a Keller Williams seminar this month, Leadership reflected on the past few years and expectations for the future. 2021 was the strongest market volume year the real estate market has ever seen, with 2022 the second highest. KW predicts 2023 will be the third strongest year due to the fact that prices have increased so much that even with a “pull back”, volume should be very high.

Real estate investments on average yield 4% annually. At times, the investment may vary but it’s proven to be a wise long term investment.  Currently home prices are 12% above the trend, and we’ve seen years where prices are 22% above trend, as shown in the chart below. 

Interest Rates

Many buyers are currently concerned about higher interest rates than we’ve seen in recent years, but historically speaking, rates are still low compared to levels from the 1970s and 80s. Many buyers are buying a point to lower the interest rate. Investing in real estate has proven to build wealth over time. Investing in your home and secondary property are reliable and predictable assets to add to your investment portfolio.

The Rakela Team
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