The real estate market has garnered much media attention over the last several years. Record-breaking median home prices, soaring inflation, and the dramatic rise in interest rates have certainly made following the real estate industry an interesting experience — and one that is likely to continue for some time. While the trends and forecasts on the national level paint a broad picture for real estate, how local markets are performing is a bit more complicated. The national economy certainly impacts median home prices in all major markets. Still, many other local variables can affect why homes in your neighborhood are rising in value while prices in a neighboring city are dropping. Keeping that in mind, let’s evaluate the current real estate market in Bergen County’s Fort Lee, NJ, and look at what experts say about this city's market forecast.
The national market began to cool in early 2023
The short supply of homes dramatically increased the demand for available housing during the early months of the 2020 COVID-19 pandemic. In every major market, buyers were competing against one another, often paying well over the list price for homes. The median home value in the United States hit an all-time high in June of 2022 before declining.
This drop was due to the Federal Reserve's increasing interest rates. April 2023 saw the first year-over-year decline in median home prices, making some speculate that buyers were about to get some breathing room. This drop in prices was only temporary, however. Home prices are already beginning to rebound, with many experts speculating that the record median home prices set last summer will soon be exceeded.
Forecasters are also predicting two significant occurrences that will likely impact the national real estate market for the remainder of 2023. The first is the continued increases in the interest rates, which are already over 7%. The second is a recession, which 50% of economists say is likely — a percentage down from May’s 61%. Indeed, this news will impact the Fort Lee real estate market.
The current trend in Fort Lee still strongly favors sellers
The demand for housing in Fort Lee hasn’t decreased in the wake of higher interest rates. While the number of home closings in Bergen County and Fort Lee has certainly dropped from last year, the short supply of homes is keeping the real estate market in Fort Lee a great one for sellers. But will that continue?
If interest rates continue to rise, it could undoubtedly drop the demand for housing in Fort Lee. Fort Lee remains one of the most desirable communities to buy a home in the New York metropolitan area and will likely continue to be for the foreseeable future. Even if interest rates tick up several hundred more basis points, it won’t stop all buyers from wanting to live there. Rather than a severe cooling effect on the Fort Lee real estate market, it’s possible that median home prices may slightly dip over the rest of 2023.
As of July 2023, Bergen County saw a slight uptick in median sales prices, with homes reaching an average of $707,500. Housing inventory dropped significantly by 47.4% to 965 homes. The amount of time homes spent on the market also decreased, indicating plenty of buyers in the Fort Lee real estate market.
What to keep in mind if you are considering selling property in Fort Lee
If you’re considering selling property in Fort Lee, you’ll probably be paying attention to what the Federal Reserve will do with interest rates the next time they meet. Market analysts predict continued increases, which might make your home less valuable tomorrow than it is today. Does this mean you should immediately sell?
While you can make reasonably accurate market predictions in real estate, there’s no such thing as a sure bet. Many factors outside of the economy’s control mechanisms (like adjusting interest rates) can impact the market at a moment’s notice. Selling today might very well mean taking advantage of the Fort Lee real estate market’s rising home values, however.
How the market trends in Fort Lee will impact your buying decision
If you’re a buyer and reading this post, you might be thinking about holding off until the market cools and median home prices decrease. But before you make your final decision, there are a few key points you should consider.
It’s evident that if you buy a home today, you’ll likely be paying much more than you would have two years ago. However, this shouldn’t be a deterrent. While market prices could certainly drop in the next few years, it’s not likely that interest rates will fall to the historic levels seen in 2020 and 2021. While you will pay more for a home now than you would several years ago, you’ll save much more money by locking in on today’s interest rate than if you wait.
Hesitation is a typical action when it comes to buying a home. After all, purchasing a house is the single largest investment the average U.S. consumer will make in their lifetime. But don’t let concerns paralyze you from making a decision. The Fort Lee real estate market is booming, and buying a home now will allow you to immediately begin generating equity, creating long-term wealth for you and your family.
Ready to buy or sell in Fort Lee?
The decision to buy or sell real estate in any market is one that should be carefully planned. With the current real estate market in Fort Lee taken into consideration, it’s more important than ever to seek the expertise of a real estate professional. An agent with Scott Selleck’s experience will be invaluable as you look to buy or sell a home. Scott has represented buyers and sellers in luxury real estate, providing white glove service to his clients from the first consultation to closing day. Contact Scott to look at Fort Lee, NJ, homes for sale today.
