The current condition of New Jersey and its real estate market during the COVID-19 outbreak and how they are dealing with it?
The global pandemic has shaken everyone to their core as it has impacted every household, business, and many countries worldwide negatively. COVID-19 has not only affected our health frontline workers but also influenced the financial markets on a larger scale. Many property owners, investors, landlords, and buyers find themselves in a predicament and are, therefore, doing their best to invest wisely to stay safe from the risks. Due to this life-endangering virus, the physical viewings have become quite an impossible task for the property owners and buyers; therefore, they turn toward the virtual viewings. There are many contributing factors that led to the fluctuations and shifts in the real estate market in New Jersey due to coronavirus. The question that arises in every businessperson’s mind is whether it is a good time to invest in or not.
How will the ‘new normal’ Real Estate Market look like this summer in New Jersey?
Let us first have a look at the past factual details about the financial activities that took place in New Jersey from 2005 to 2020. When it comes to the contract-Sales activity in New Jersey, you can understand that the initial two months of this year, the sales of the homes increased, but as soon as March set in, the percentage of the sales plummeted down to about 30% lower than the previous month.
After going through these inapt financial records of the sales, the researchers have already told people to get themselves ready for a bumpy and unwanted ride along with the unwanted circumstances.
The unfortunate yet truthful predictions for this April indicate that almost 70-90% fewer properties and homes will be sold this month that are much lower, compared to the increased percentage of sales in April 2019. Yes, it is quite an enormous change as the clients tend to be reluctant when it comes to buy and purchase properties and houses based on the online pictures, videos, or virtual tours on the websites.
The answer to the confusion of investors lies in the fact that their entire business and its nourishment and growth depends on the number of COVID-19 infections. Therefore, if the number of coronavirus infections and cases does not reach the summit, there are possible chances that businesses might begin their growth in July. As the experts firmly believe that once the businesses start nurturing and growing, there remains the probability that the sale rates might get equal to that of the rates of 2019 eventually. It will then, therefore, lead to an increased number of sales in September, and hence, the gradual increase in the growth of businesses will be observed slowly and gradually towards the end of this year. Although the complete list of impacts of COVID-19 on the financial markets is still kind of vague, through the research of these experts, informed as well as the real estate professionals, one can be optimistic about their financial job security.
What are the New Jersey aggregate mortgage interest rates?
As New Jersey is the densely populous state, therefore it has an enormous mortgage market from which you can anticipate the risen prices of its houses generally higher than that of the national averages. The average price of a house in New Jersey during 2019 was almost $310,950, which is approximately 21% higher than the national average of $257,000. Normally, 85% of the New Jersey house buyers tend to rely on the mortgage to acquire their property, as for them, the rate happens to be lower than the 86% national level.
A comprehensible and vivid downfall in the interest rates can be observed in the below mentioned researched and authentic information to assist the customers in the mortgage procedures.
- For a term of 30 years at a fixed mortgage rate, the interest rate last week was 3.45%, which has now reduced to 3.36% with a change of 0.09% per day.
- As for the loan term of 15 years at a fixed mortgage rate, the interest rate last week was 2.91%, which has now reduced to 2.85% with a change of 0.06% each day.
- Considering the 5/1 ARM mortgage rate, you can observe the last week’s interest rate as 3.2%, which has reduced to 3.19% with the change of 0.02% per day.
- Having the term of 30 years at a fixed jumbo mortgage rate, one can vividly notice the change in the interest’s fall. The interest rates of last week 2.47% have reduced to 3.36% with a change of 0.11% daily.
- Keeping the term of 30 years under notice with the fixed refinance rate, the interest rate last week was 3.47% that has now reduced to 3.32% with a change of 0.15% each day usually.
What are the current updates of New Jersey handling the real estate market in this global pandemic?
Although, it has become quite a difficult and tough methodology to buy and sell your properties online through virtual touring while organizing meetings between investors and clients on online video calling applications, it’s a great time to buy and sell your property. Let us have a look at how the real estate market of New Jersey is thriving and continuing the procedures of contract-Sales:
- One of the advantages which people take from the real estate market of New Jersey is that they are allowed to visit their properties and houses without any restrictions. Unlike other neighboring states i.e., Pennsylvania, the agent, and the client can organize a formal meeting to decide the proceedings.
- The virtual real estate market is also quite trending in New Jersey these days, as the clients get an opportunity to watch their property to their heart’s content without actually going there and exposing themselves to the deadly virus.
- The researchers and experts in this profession have deduced that there has not been observed any panic buying or selling at all in this state’s real estate market. According to their perception, people have taken this global pandemic as a little bump in the road. It is their optimistic nature and positive outlook towards this predicament that there has not been noticed any obvious and unfortunate fluctuations in the interest rates of the properties available in New Jersey.
What are the best places to buy and reside in New Jersey during this pandemic?
In order to get a comfortable, affordable, and convenient residential place during this global pandemic, one needs to keep in mind the top-rated places and areas in New Jersey. Some of them are mentioned below:
- Princeton Junction manages to take the lead on other competing areas and attracts a wider variety of clients due to its beautiful area filled with picturesque scenes of farm, gardens, and greenery. Its public schools and housing are also ranked above other areas, and therefore, this area has upheld its reputation as the best place in New Jersey.
- Monmouth Junction also consists of the admirable school and housing system and maintains to provide a safe and secure environment for the families to reside in during the outbreak of COVID-19.
- Glen Ridge, though, is a populated area but has successfully provided the housing, commercial, and schooling system to the next level. Although, it is expensive yet quite comfortable and convenient for a potential client looking for a place full of opportunities among this chaotic global pandemic.
If you are considering buying or moving to New Jersey, you can use this resource to find fun things to do.