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The Lloyd Law Monthly Report on North Jersey Real Estate - April 2020

Posted by James Lloyd | Jun 16, 2020 | 0 Comments

Each month, the New Jersey Association of Realtors publishes key metrics of the real estate market for every county in the State.  This data compiles a great number of useful data points including new listings, closings, and median sale price with a comparison to prior year data.  The Lloyd Law Office regularly reviews these reports to stay up to date on trends in the market so that we can better advise our clients and referring realtors.  We primarily look at the five counties of Union, Essex, Bergen, Passaic and Morris that we regularly work with buyers and sellers of real estate.  This information is available to the public on the website of the New Jersey Association of Realtors at  http://njar-public.stats.10kresearch.com/reports

Single Family Homes –April 2020

Key Metrics

New Listings

% 2019 Month change

New Listings YTD

Closed Sales

% 2019 Month Change

Closed Sales YTD

Median Sale Price

%  2019 Month Change

Median Sale Price YTD

Bergen

419

-70.6

3,124

420

-24.2

1822

549,500

+15.7%

$510,000

Union

288

-66.1%

1,940

308

-17.4%

1,228

449,500

+21.9%

$389,000

Essex

313

-65.9%

2,041

314

-23.0%

1,266

485,000

+13.8%

$425,000

Passaic

152

-71.4%

1,133

167

-24.4%

730

$365,000

+10.9%

$351,250

Morris

343

-68.9%

2,277

343

-2.3%

1,289

$460,000

+4.5%

$435,000

Hudson

48

-70.0%

331

39

-51.9%

208

$365,000

-6.4%

$390,000

Sussex

222

-45.2%

1,115

178

+6.0%

650

$269,950

+8.6%

$256,400

Total

1,785

 

11,961

1,769

 

7,193

     

April 2020 was the first full month of quarantine and social distance during the global pandemic from the COVID19 Coronavirus in Mid-March.  Federal Guidelines issued by President Trump's Coronavirus Task Force along with Executive Orders issued by Governor Phil Murphy have effectively shut down the State.  We learned terms like social distance and essential businesses.  Many North Jersey Counties have deemed the County Clerk's Office and its vault as non-essential and therefore closed.  The national and local economy was roaring into the beginning of 2020.  As reality set in of the impact of the pandemic, we saw double-digit percentage drops in both the number of new listings and closed sales from April of 2019.  Even still, transactions were closing.  It is puzzling that home sales were not considered "essential" by our state and local governments.  It does, however, remain clear that this slowdown is quite unlike the market collapse in 2007-2009.  This is truly all the result of stay at home orders and not an indication of market bubble.

The shortage of listings in April have actually driven a hot market in May and June.  In the first week of June, a friend received multiple offers on the first day of listing their home in Ridgewood.  A recent Bloomberg News article predicts that suburban New Jersey homes are set for the biggest price increases since 2004.  Two Rivers Title in Tinton Falls, NJ is expanding its operations and awaiting the influx of transactions.  Anthony Coppolla, recently promoted to Two Rivers Regional Sales Director, predicts a record-breaking summer of real estate transactions.    Joe Bucci from Chancellor Closing Services in Fair Lawn, NJ knows that a giant wave of real estate transactions is heading toward North Jersey as people flee New York City and as New Jerseyans flee south and west. Coronavirus has changed the way that people think about their homes and their quarantine friendly environments.  Deborah Citarella, a super agent from Coldwell Banker in Westfield, NJ (Union County) has already seen explosive demand from sellers and buyers and has benefitted from her investment in innovative 3D technology to allow contactless virtual showings of properties.  

The Lloyd Law Office is both fully virtual and fully present in its physical office.  We have adapted our practice to meet the needs of home buyers and sellers during the pandemic with cloud based transaction management systems for client portal access as well as flexible signing and closing procedures.  With more than 1,700 closings in North Jersey during the most devasting month of the pandemic, North Jersey real estate is a strong investment and projects to see explosive growth in the third quarter of 2020.

About the Author

James Lloyd

Jim Lloyd is a husband, father and attorney. A graduate of Tulane University School of Law, Jim brings over 25 years of legal experience to help clients make strategic estate planning choices and to make buying or selling a house easier.

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