December 3, 2020
With all the hype and the intense speed of the market this year in Bergen County, lots of folks are wondering just how high home prices rose. As is usually the case, the rumors have not proven to be true – at least not across the board.
Yes, the pace was intense – but the much-talked-about invasion of New Yorkers was not. Although there was certainly an increase in the number of buyers coming from the city, not everyone leaving Manhattan in 2020 came across the Hudson and purchased in Bergen County.
Demand was certainly greater. And the thing that balances this demand, and the low interest rates, is affordability. Prices cannot rise above what buyers can afford to pay. In a compromised economy, not everyone can keep pace with huge price increases. This tends to stifle rising home prices – at least in some areas.
Real estate is an extremely local affair. What is true in Alpine is not necessarily true in Ridgefield Park. What holds in Fort Lee may not be the same in Maywood, or Austin, Texas or Boise, Idaho for that matter. As is always the case, the specific market has dictated where prices have gone this year.
For example, here are some of the findings provided by The Otteau Group. The foremost appraisal firm in New Jersey, The Otteau Group provides cutting-edge analytics and reliable data on our local markets:
- Fort Lee – 1% price decrease overall projected for 2020
- Ridgefield Park – 7% increase for 2020
- Alpine – 1% decrease for 2020
- Bogota – 8% increase for 2020
What’s on the horizon for home buyers and sellers in 2021? We’ve seen a tiny bump-up in mortgage interest rates as the stock market has improved over the past several weeks. Predictions are that rates will continue to rise over the next couple of years, albeit very slowly. Will this cause a slowdown in the housing market? It should. Will prices follow suit? Only time – and location, location, location – will tell!
