Are you looking for a new state to move to? Well, if you’re interested in New Jersey here are some things to consider. On Saturday July 31, the Biden Harris administration’s extension of the federal eviction moratorium ended. The moratorium was initially set to end June 30 but was extended another month nationally. In New Jersey, Governor Phil Murphey wrote numerous executive orders that would also provide relief to renters, mortgage holders and landlords. Executive Order 106 prohibits removing tenants from residential properties during covid-19 state of emergency and judgments for possession, writs of possession, and warrants of removal may not be enforced during this period. Executive Order 106 will not expire until January 1, 2022, and the state has also announced other initiatives to support renters and homeowners. However, the eviction moratorium may end earlier than the current deadline of Jan.1, for families with higher incomes.
According to Nj.com, low inventory and eager buyers are what is affecting the market the most. Buyers are trying to take advantage of low interest rates, but low inventory is causing biding wars as well as sight unseen offers. Some buyers are also forging certain contingencies like home inspections and appraisals to win the bid wars. In North Jersey, buyers have been moving from urban areas to suburb areas. Some buyers have experienced long lines at open houses and homes that needed upgrades have been selling above their value. Teaneck, Upper Saddle River and Sparta have seen the highest increase in home value in this post pandemic market. In South Jersey, it seems older houses tend to sit on the market longer than new construction, while move in ready homes are the quickest to sell. Covid has also jacked up the price of lumber and other building materials and builders cannot keep up with the demands of the housing market.
Furthermore, down at the Jersey Shore, the housing market is like North and South Jersey but there seems to be more inventory. According to NJ 101.5, housing values have increased 16% since last year and values could increase another 9%. There seems to be land and commercial properties available as well as new apartment complexes being built. One would assume that the Jersey shore is taking advantage of the buyer demand and are working on building up the area. I can see the North and South Jersey markets to slow up more this year but down at the Jersey Shore I would assume the market will continue to grow. However, in this “supposed” post pandemic era, I would be cautious in all movements, especially when it comes to buying property. I think buyers who skip home inspections are brave. I can understand skipping an appraisal, but home inspections can reveal the true condition of the property. I believe it is important to buy a house that has good bones. The only way I would skip a home inspection is if Yahshua Hamashiach guided me to that house.
“He is like a man building a house, who dug deep and laid the foundation on the rock. And when a flood arose, the stream broke against that house and could not shake it, because it had been well built.”
Overall, for the rest of 2021, I believe that the housing market is going to have high tides and low tides. Just like the beautiful beaches that are attracting buyers to coastal areas in New Jersey. 2022 will probably bring new changes to the housing market as political races commence. Everything in our society seems to change daily. There are many forces influencing these changes and I would take the time to research things thoroughly. I would also encourage people to reach out to Yahshua Hamashiach, he has all the knowledge needed to move sight unseen.
Housing Market Predictions 2022-2025: Real Estate Crash?