How hot is the market?
Well, in the last 2 weeks I have put in 5 offers and all were multiple bids, ranging from $375,000 up to $1,485,000.
It’s bad enough when you don’t win the home on the first attempt; but, a deal that we came in 2nd place came back to us 10 days later and we submitted our offer, only to get bested again and without being given an opportunity to even counter.
Why is this happening? Inventory is ridiculously low. In Maplewood, inventory is about 78 actives, but this is down almost 50% from last year’s levels of 138 homes on the market. In South Orange, inventory is down to 73 homes from last year’s 89 homes, a decrease of 18% over 2012 levels. Rounding out the immediate areas, Millburn and Short Hills have 10% less inventory. Springfield only has 51 homes versus 81 last year at the same time and Summit has 70 homes versus last year’s 101 homes.
Simple Economics tells us that the market is defined by supply and demand. With interest rates still at historical lows and inventories now equally low, the market has shifted into a Seller’s Market and bidding wars are now happening close to 40% (37% of the homes Under Contract sold within 30 days of their listing date) of the time.
If you are a buyer, please have patience.
If you are a seller, you are in luck.
If you are thinking of selling, get you home on the market quickly to take advantage of the pent up demand!
There are currently no listings in Montclair Township,Maplewood Township,South Orange Village Township,Glen Ridge Boro Township but please check out these great listings: