Homebuying Today Is Not About Rates….

The recent drop in Interest rates did not bring undecided  buyers off the fence…A monthly survey of real estate agents by Credit Suisse found, “The recent move lower in rates (that has already partially reversed) did not drive incremental demand, though this could change over time if low rates persist.”

How can this be? Because home buying today is not about rates; it’s about price and supply. The two are inextricably linked, and both have been moving more dramatically than normal lately. Buyers are either facing sticker shock or not finding what they want.

As the national housing recovery drones on, local market dynamics are changing at a rapid clip. In fact a full return the price levels see in 2007 is not expected to take place before 2018 according to a recent survey by Zillow.

While national data can point at  general trends, every local market has its own dynamics .  In Eastern Bergen County in towns such as Tenafly, Demarest, Alpine , Closter and Englewood  inventory levels are relatively high pointing to a slower market than the one in 2013. The one segment that is doing better than  others is new construction. While inventory around towns like Tenafly may be high suggesting a big selection to chose from, buyers are shying away from what is perceived as older or dated homes,  in favor of new construction and, at the expense of larger property or better location.

NJ Inventory

Supply of unsold inventory is a projection of how many months it will take for the local housing market to absorb the inventory of unsold homes (Unsold Inventory) . A healthy number is around 6 months supply of unsold homes. A lower number than 6 indicates strong demand while a higher number indicates a slower market.

Here are the quarter up to date  cumulative months of supply  for select towns as well as for Bergen County

Tenafly – 9.1 months

Demarest – 15.6 months

Alpine – ?

Closter – 9.5 months

Englewood – 8.4 months

Bergen County – 6.8 months

To See What is Selling in Each Town And for How Much Click Here