(Published on - 2/23/2021 3:03:10 PM)
How Did Covid-19 Change The Trajectory Of The Real Estate Market In Nutley NJ?
How Long Will It Stay This Way in Nutley New Jersey?
The covid real estate market in Nutley has definitely changed, while covid has kept up locked down and we are all experiencing the side affects of the new real estate market place the question that I have been asking is this a temporary change is it it a pivot point for residential Real Estate in Nutley or not?
It was early March 2020 when everything came to a grindig halt, and for two weeks we didn't even know if we were in business any longer, all the brokers and realtors in Nutley where wondering how we were going to handle our business and sell homes in towns, the state also shut us down for several weeks we were not allowed to show homes at all or go into our offices.
But then like a thundering boom the Real Estate market in Nutley came roaring back, mostly in part because people from the more congested areas of Northern NJ & NYC wanted more space, they wanted a yard now and a pool and an extra rom to become a work at home office/classroom and we are still experiencing this type of market at the moment, especially any homes in that $400k-$500k range, they move rather quickly sometimes in the first day.
Now just because homes are moving fast right now does not mean they will keep doing that in the future, we have several things that could slow down the heated real estate market right now, if the government decides to raise interest rates (which they may have to, to control inflation) as the vaccines roll out and herd immunity starts to take affect and people feel more comfortable and as jobs start to come back and so on, don't forget there are a 2.9 Million people still in forbearance, so I don't want to give everyone a false sense of security that the value of their home today will be the same in 9-14 months from now.
What will the long term effects of Covid-19 have on the Nutley Real Estate Market?
Well for one I think the proximity of NYC down the road may not influence the values of our properties in town as it has in the past 70 yrs, because employers have figured out how to make 80% of their workforce work remotely and it is a big cost savings especially if you have a huge lease in NYC, I don't think the telecommuting worker will ever go away it is here to stay as far as I can see, we were headed this way and Covid kind of forced this upon us.
Think about it, I am a business owner in NYC, I need to hire someone that is working 100% remotely, that persons salary from Northern NJ is $90k per year, meanwhile I have a person in Toledo who can do the same job for $60k a year you see it doesn't matter where you live today, you can work from anywhere and big employers know that.
My snapshot of the market is that we will see a busy Spring & Summer, Homes in that $400k-$500k range are the homes in most demand at the moment, but I do see a shift coming in 9-14 Months, we go through these cycles all the time every 10-17 years for the past 100 years but this time it's a little different because of Covid, we need to watch Inflation in the next couple of months and watch how it affects the interest rates on mortgages that is key right now this will directlty impact real estate in Nutley NJ.