Wayne, NJ -- The beginning of the year always brings about a new gathering of enthusiastic buyers in the real estate market. While sales totals may start off slow due to current inventory concerns, 2017 is expected to be a positive year for buyers and sellers alike.
In Passaic County, the number of closed sales for single-family houses increased 30.2 percent to 224 in January, compared to 172 in 2016. However, the number of new listings has decreased by 9.9 percent while the average number of days that a single-family house remained on the market also went down by 13.6 percent to 89, compared to 103 days in 2016.
The number of new listings for townhouse-condos in Passaic County increased by 27.7 percent from January 2016. The number of closed sales saw a 92.3 percent increase from last year, further proving that townhouse-condos are starting to become more popular amongst buyers, especially millennials. While the number of closed sales increased, the average price for townhouse-condos decreased by 6.4 percent, which is encouraging news for buyers. In 2016, the median price was $240,500. Currently, it has decreased to $225,000.
In the adult community market, the number of closed sales increased by 100 percent, although the market is relatively small. However, the number of new listings have decreased by 33.3 percent, while the number of days on the market has increased by 3.3 percent. The median price has also jumped by 8.2 percent. In 2016, the average price was $300,00. In 2017, that number has risen to $324,500.
On a state level, the number of single family closed sales went up 11.8 percent to 1,740. The townhouse-condo closed sales increased by 3.5 percent to 358. The adult communities closed sales also rose by 104.2 percent to 49. While the median sales prices for both single family houses and adult communities increased respectively, the average price for townhouse-condos dropped 2.7 percent to $248,000.
With President Trump eliminating the .25 percentage point rate cut on mortgage insurance premiums for loans backed by the Federal Housing Administration (FHA), many are concerned about the future of the real estate market under the new administration. FHA loans were seen as a viable option for people who had restricted financial resources. However, experts from the NJ Realtors® Association believe that with increased wages and low unemployment rates, the real estate market is ready to bloom if more houses become available to sell in 2017.
*All information has been taken from a monthly NJ Realtor® Association report.
As part of the Passaic County community since 1909, The Passaic County Board of REALTORS® represents a diverse group of individuals who work together with their neighbors, community groups, schools and elected officials to help make northern New Jersey a place you want to live, work and play. The Passaic County Board of REALTORS® (PCBOR), the “Voice for Real Estate” in northern New Jersey since 1909, represents more than 2,000 members from all real estate specialties including commercial sales, development, property management, appraisal, auctions, and residential sales. For more information, visit pcbor.com.
Contact: Anika Nahar