Relief in Sight from Market Plagued by Low ? Inventory
April 8, 2021
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May 20, 2021
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10 Waterbury Road Montclair, NJ
Advice for Real Estate Buyers and Sellers in this Tumultuous Market
Even with the challenges of this real estate market, there are opportunities for home buyers and sellers.
Low inventory continues to plague the Montclair real estate market, but we are not alone. The phenomenon seems to be nationwide, creating a bottleneck preventing would-be sellers from finding their next home.
Sellers have been slow to come to market because they have been having trouble finding their next home due to low inventory or the inability to travel outside the area.
In terms of Montclair housing market results for this past April, I will compare April 2021 results to April 2019, as the data from April 2020 was an anomaly due to covid shutdown.
The average sale in April was $910k vs $893k in 12 months ending 4/30/21, and $737k in 12 months ending 4/30/20.
Sales data reflects three main factors for the latest real estate market results:
- low inventory
- price appreciation
- more large homes sold
Despite demand, there were only 63 new listings in April, up slightly from 58 last month, vs 91 in April 2019. As a result, there were only 115 active listings in April vs. 185 in April ‘19.
At the same time, buying activity has not fallen off much; 63 houses under contract in April 2021 vs. 70 in April 2019. (vs 17 in 2020, just to highlight Covid effect).
Yes, it is a difficult market for both buyers and sellers, but there are opportunities for both parties, nevertheless.
My Advice for Real Estate Buyers:
- If you anticipate an appraisal report coming back below contract price, set a floor for an appraisal that you are comfortable with if you have the cash to fund the additional equity needed.
- Provide CLEAR proof of funds and your liquidity from the outset.
- Spell out your expectations for inspection items and any other major items or events.
My Advice for Real Estate Sellers:
- Consider negotiating a Lease Back after close. This would allow you to stay in your home for a certain amount of time post close, while giving you the funding and timing flexibility to conclude the purchase of your next home.
Questions on how to apply these tips to your specific situation?
Contact me to discuss.
Best, Rich
Rich Stanton
Principal Broker
3rd Generation Owner
