What’s up in the NJ Real Estate Market? 

When we look at the significant change in how long a home stays on the market now  compared to Jan of this year, we can easily identify some key strategies for sellers and buyers.

Back in Jan 2022 and the 2 years prior, while working with buyers I needed to be like the arcade game “Wack a Mole” and run to see the home seconds after it was released onto the MLS. 

It was so frustrating for buyers submitting offers significantly over the asking price and still losing the bid to buyers wildly more aggressive. 

Within days the home was no longer available. This was so common that it became the inspiration for jokes made by realtors with their social media referencing this crazy phenomenon. 

The term “highest and best” became the cringe worthy normal term to which everyone rolled their eyes. 

Compare that to now after 4 rate hikes impacting the buying power of the current qualified buyer pool and you will see a drastic change presenting 2 key strategies to be successful as both a buyer and a seller. 

What I am seeing now is that the inventory has increased…but has it??

In its simplest terms, the inventory is made up of two types of listings. 

Type one – The Overpriced listing

Type two – The perfectly priced listing. 

 The overpriced listing usually comes with a very reluctant seller who most likely doesn’t have a sense of urgency and won’t entertain offers that are far beneath their high list price. 

This listing either decides to not sell at all or decides to participate is a series of price reductions dancing with time and the alternating waves of qualified buyers. This dance goes from the Cha Cha to the Tango as the rates continue to climb. 

The perfectly priced listing is like a mosh pit concert where the winning bidder is surfing the crowd with their wildly aggressive serious offer presenting excellent terms for the seller to accept. 

The buyers swarm with excitement and relief at the value for the price! 

So the illusion of increased inventory doesn’t really count because overpriced listings are not really being seriously considered making the market tight and much more frustrating for buyers who are second guessing themselves about when to “bop” with all of their might for the house or when to let it slip away for lack of confidence in desired features and value. 

If there was only one strategy for sellers it definitely is to price it correctly. 

The formula for both sellers and buyers to make the best decisions is this; Recent comparable sales looking at days on market, comparing list price verses sold price, age of home, square footage, and calculating costs of added or missing features, lot size, and location. Save the rest for inspection time. Having the right agent to guide you is truly the key. 

As a seller, rather than dance with the price reductions I am seeing in the market now, it is best to start out right. 

Depending on who your agent is, “The client is always right” only holds very strong with the exception of “list price” 

List price becomes “wish price” if you do it correctly anyway. 

To learn more about my listing guide and buyer’s guide, please visit my homepage. 

The NJ Feng Shui Realtor/Life Coach serving NJ buyers and sellers with extreme genuine Care… 

@joannarenner_

@the_nj_fengshuirealtor