[Waldwick, NJ – May 26, 2020] – COVID-19 has made a huge impact on the real estate industry in the last couple of months, forcing society to adjust to different ways of conducting business, not to mention the number of people who have lost their employment due to this pandemic crisis.
While the stock market recovered significantly in March, the effects of COVID-19 to the economy continue to build. In just the last four weeks, more than 20 million people nationwide filed initial unemployment claims according to the United States Department of Labor, including nearly 600,000 claims filed in the State of New Jersey alone. In the face of these challenging times, real estate activity in April slowed significantly.
During the month of April, Single Family Closed Sales decreased 22.5 percent to 375 from March which was a 5.3 percent decrease to 426. Townhouse-Condo Closed Sales decreased 39.3 percent to 116; Adult Communities Closed Sales increased 50.0 percent to 6.
Single Family Median Sales Price on the other hand was up 12.6 percent to $535,000; Townhouse-Condo Median Sales Price was up 9.7 percent to $395,000, and Adult Communities Median Sales Price was down 55.5 percent to $299,500.
While the effect of COVID-19 does vary across the state, it is expected that social distancing, higher unemployment, and lower overall economic activity is likely to continue to constrain real estate activity in the near term. At the same time, the industry is adapting to the current environment by conducting business using technologies such as virtual showings and e-signing to help buyers and sellers with their housing needs in the face of these challenges.
“While the ‘stay-in-place’ executive order throughout New Jersey has soften the real estate market as per recent market stats, we are still seeing activity. One-on-one showings, houses selling and coming on the market.” Stated, 2020 Greater Bergen Realtors President, Gene Amsel. “Buyers are now more inclined now to look to move out of populated areas and into areas that are less populated with schools and other amenities for families,” he continued.
There seems to be a pent-up demand for housing, as a result we will see more buyers looking to change their lifestyles, we will also see this change in inventory as well. The Spring market may be starting in July and August.
Data as of May 20, 2020. All data from New Jersey MLS and Hudson County MLS. Margin of error for reported statewide numbers is +/- 4% at a 95% confidence level. Provided by New Jersey REALTORS®. Report © 2020 ShowingTime.
Greater Bergen REALTORS® provides invaluable information, programs and services to ensure the success of its members in everyday business. As the leading voice of real estate in North Jersey, we advocate for the public to protect private property rights as well as the right to home ownership. The association is a highly influential and important member of the local, state and National REALTOR® family. Greater Bergen REALTORS® represents over 7,800 in northern New Jersey. For more information, please visit www.GreaterBergenRealtors.com.