A Seller’s Market: What it means for you
March 3, 2021 | Dwell JC
One thing we can all agree on is that we are in a seller’s market, and it’s a good market for both sellers and buyers because interest rates are super low, and cash buyers are ready to spend their bonuses on their next home.
Realtors measure the market activity in terms of “months of supply”. If the months of supply is below 6 months, we are in a Seller’s Market. Six to seven months is considered neutral, and above 7 months is a Buyer’s Market.
Last year downtown Jersey City started with about 3.6 months of supply, which is a strong Seller’s Market. Then in April because of the pandemic that soared to 21.2 months. But by January, the Otteau Group reported that the absorption rate in downtown dropped to a 1-year low of just 3.3 months.
What Does this Mean for You?
If You’re a Buyer:
Be patient during your home search. It may take time to find a home you love. Once you do, however, be ready to move forward quickly. Get pre-approved for a mortgage, be prepared to make a competitive offer from the start, and know that a shortage in inventory could mean you’ll enter a highest and best situation. Calculate just how far you’re willing to go to secure a home and lean on your real estate professional as an expert guide along the way. The good news is, more inventory is likely headed to the market soon, with many units throughout downtown JC underway.
If You’re a Seller:
Realize that, in some ways, you’re in the driver’s seat. When there’s a shortage of an item at the same time there’s a strong demand for it, the seller is in a good position to negotiate the best possible terms. Whether it’s the price, moving date, possible repairs, or anything else, you’ll be able to request more from a potential purchaser at a time like this – especially if you have multiple interested buyers. Don’t be unreasonable, but understand you probably have the upper hand.
The housing market in Jersey City, especially downtown, is off to a very strong start and is expected to remain strong throughout 2021. Know what that means for you, whether you’re buying, selling, or doing both. Contact me with any questions or for a comparative market evaluation.