The Impact of Coronavirus on the NJ Real Estate Market

With the whole world seemingly coming to a standstill amid the 2020 coronavirus crisis, the New Jersey real estate market is starting to show signs of distress. Buyers are uncertain about leaving the house and sellers aren’t keen on letting strangers into their home. With the financial crisis destabilizing the economy on top of the current health crisis, many buyers and sellers are deciding to sit tight until this is all over. It can be hard to make confident decisions about real estate plans in the midst of all these unknowns. Here is what you need to know about the NJ housing market going forward.

Exactly how the coronavirus crisis will impact the real estate market is yet to be seen. The overall U.S. housing market saw a good start at the beginning of 2020. The virus has caused the real estate market to take a slower, more cautious pace. As the situation develops, there has been a significant slowdown in real estate listings at a time of the year when listings are normally at their highest. Another sign that the housing market is likely to slump: mortgage applications are down 24% from this time last year, despite mortgage rates being at an historic low. Refinance applications, however, are up 168% from where they were this time last year.

Despite this, those looking to enter the real estate market this spring are not totally out of luck. While the number of potential buyers is lower than normal, they are still there. And while some sellers are nervous to let outsiders into their homes, many sellers are adapting to the coronavirus challenge by asking potential buyers to follow additional hygiene rules. Buyers and sellers can wear masks, booties over shoes, and be mindful of keeping their distance. Frequent cleanings of a property can also help ease the minds of sellers and buyers during a transaction.

On the other hand, buyers can expect fewer bidding wars and more time to negotiate a better deal. As investors flee stocks for the safety of US bonds, buyers will notice that mortgage interest rates are increasingly favorable. We have already started to see this with some of the lowest rates in the history of the housing market. If you are looking to buy a home, now might be THE BEST time to do it if you can work through the logistics of social distancing.

For buyers, sellers, and realtors, there has been a big shift towards online real estate platforms to combat logistical issues caused by the coronavirus. People are utilizing real estate tools like Zillow, Trulia, and Realtor.com for their housing searches now more than ever before. Virtual tours, digital walk-throughs, and video conferencing are temporarily replacing traditional in-person interactions.

The full impact of the crisis is not yet known, but as long as you are making informed decisions and remain flexible, you should not be afraid to move forward with your plans to buy or sell a house in New Jersey this spring. Veitengruber Law will remain available throughout this crisis to offer expert advice and help you achieve your real estate goals.

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