Here’s your Real Estate Market update for Ridgewood as of early February 2023. The local housing market usually takes a brief break in January. Then the Spring Market begins to ramp up in February – earlier than usual due to the continued high demand for homes from buyers.
In our local real estate market, inventory shortages will likely keep home prices moving upward as buyer demand continues to outpace supply, plus the drop in mortgage rates will continue to motivate people to move. This is somewhat contrary to what many experts predict on the national level – that US home sales will slow and housing prices will soften. Here in Ridgewood and NW Bergen County, housing prices are not softening, if anything they are continuing to rise. The outlook for sales of single-family homes over the next few months is very positive due to the extremely strong demand for homes.
Low Inventory – High Demand for Homes
Many new listings are being prepared to hit the market soon, so we expect a strong early Spring Market this year. Keep in mind, the “Spring Market” usually begins before Winter is over – even as early as February (especially if the weather cooperates).
Fortunately, we’ve seen multiple drops in the mortgage interest rates over the past few weeks. After experiencing the largest and fastest rise in mortgage rates ever last year, the recent rate drops this year are very welcome news for both buyers and sellers. While mortgage rates are not expected to return to their lows of 2021 and early 2022, many experts believe the interest rate peak is behind us.
With the hot sellers market continuing, some really exceptional properties will become available. Homeowners who have been waiting for the perfect time to make a move are finally realizing that the time to sell is now, and more good inventory is always great news for buyers!
Why a high demand for homes in Ridgewood?
Ridgewood continues to be one of the most desirable places to live outside of New York City. Just 20 miles from Manhattan, Ridgewood is an easy commute by train, bus and/or car. Since more people are working remotely, the need for extra space and more square footage at home is really apparent – especially those living in apartments. Consequently, many buyers have chosen to move to suburbs like Ridgewood in search of more space. As a result, demand for single family homes in Ridgewood has increased dramatically over the past few years.
Currently, the local supply of homes for sale in Ridgewood is historically low while demand remains very high. Many buyers are closely watching the real estate websites and just waiting for more new listings. Therefore, when well priced properties hit the market, many buyers are interested and they know to move quickly. As a result, the increased number of buyers wanting the same property leads to competition and multiple offer situations are very common. Not surprisingly, many homes have gone under contract very quickly and have sold at or even higher than the listing price.
Sellers Market, but Good News for Buyers, too
While we continue to experience a sellers market, there is still good news for buyers with the interest rates dropping over the past few weeks and hopefully continuing to stabilize this year. Additionally, homeowners are very motivated to list their properties for sale as soon as possible to take advantage of the busy sellers market. Hopefully, as we head into the Spring Market, the supply of new listings for buyers will increase significantly thus sustaining the strong market through 2023.
A look at the Housing Stats for the Ridgewood Real Estate Market
Supply vs. Demand – The Absorption Rate
As a reflection of the heightened demand and the very limited inventory of homes, the absorption rate by the end of January was very low, only 0.48 (less than half of one month). These very low absorption rates through the end of January 2023 reflect the imbalance of supply and demand for homes and indicate a strong sellers market in Ridgewood. However, the absorption rate typically falls during the months of December and January as sellers hold off on listing and sometimes withdraw their homes to avoid showings during the holidays. We expect more new listings to come on the market over the next few weeks which is good news for buyers.
At the end of January when the 0.48 absorption rate was calculated, there were only 12 active listings. For comparison, at the end of October 2022 the absorption rate was 1.06 months since there were more than twice the amount of active listings at that time.
By looking at absorption rates (the mathematical representation of supply versus demand) you can better understand how many homes are available in a given market and how long they are taking to sell. A six month supply of homes is considered a balanced market – when the number of listings roughly equals the number of buyers. Rates over six months represent a buyers market while those below represent a sellers market.
What does this Ridgewood real estate market data mean?
Sellers Market Continues to be very strong
With less than one month supply of inventory, Ridgewood continues to experience a very strong sellers market. (Remember, anything less than 6 months of inventory is considered a sellers market). If you’ve been thinking about selling your home, now is a really good time. Don’t wait to take advantage of this strong sellers market.
Opportunities for Buyers – Exceptional Properties
While the sellers market has been great for homeowners wanting to sell in Ridgewood, buyers have also seen some benefits from the fast paced market. Those buyers who have acted quickly have been able to take advantage of the very high quality selection of homes for sale, and more listings will continue to come on the market every week as we head into this year. Check out the current homes for sale in Ridgewood.
Some amazing properties have come on the market in the past few months – but they’ve gone really fast. Believe it or not, some listings are sold before they go to Zillow or Realtor .com or other websites. Plus, there are a few exclusive listings not even advertised on the MLS. For this reason, it’s really important to work with a good local Realtor who really knows the market – I can help you!
Do you want a real advantage as a Buyer? Don’t Miss the Good Listings
Do you want the advantage of knowing about the hot new listings and exclusives before they’re gone? Call or text me, Elizabeth “Liz” Thauer, Broker Associate at Tarvin Realtors at 201-207-3900, email at firstname.lastname@example.org.
Looking at Past 12 Months
Number of Units Sold Down Over 12%
According to the New Jersey Multiple Listing Service (NJMLS), 302 single family homes in Ridgewood sold during the past 12 months (2/1/22-1/31/23) which is lower compared to the same 12 month period last year (2/1/21-1/31/22) when 346 homes sold. That’s a 12.7% year-over-year decrease in the number of units sold. This decrease in number of homes sold was due in part to the fact that many homeowners wanted to move but couldn’t find a new home to buy. This contributed to the lack of inventory in our area over the past year.
Median Sale Price Up 7%
The median sale price for the 302 homes sold during the past 12 months (2/1/22-1/31/23) was $960,000. This is 7% higher than the $897,500 median sold number from the same time period the previous year (2/1/21-1/31/22).
Looking back over this unusual year
The higher year-over-year median sale price and decrease in number of homes sold reflected the continuation of a very heated, demand driven market (with very low inventory) through the end of 2022. Even with fears about inflation and the rise of interest rates, there was still very strong demand for homes in Ridgewood during all of 2022, and we expect this demand will continue in 2023.
As reflected on the chart titled “Ridgewood 2022 Median Sale Price”, the median sold price has climbed to $960,000. For comparison, the median sale price during the same period in 2021 was $897,500.
As a refresher: the median sale price is the middle value in the list of all the sales prices in Ridgewood. (Half the properties were more expensive than the median and half were less expensive). On the other hand, the mean sale price is the average of all property sales taking into account both the very high and the very low sale prices which can sway the mean while having little effect on the median number. Therefore, the median sale price is a better indicator of the market.
What does this mean if I’m buying a home?
Some Amazing Properties Will Come to Market this New Year
While increased sale prices benefit sellers, home buyers should not be discouraged from jumping into the Ridgewood real estate market. In fact, now that the Spring Market is ramping up, this is a great time to start your search for your dream home because sellers are really motivated to list ASAP to take advantage of the busy market. Great listings will be coming on the market every week.
Just to be clear, not all homes are not selling for 7% more than they were last year. Instead, the increase in the median sale price indicates that more homes at the upper end of the market have sold compared to the previous year. The Spring Market will likely come early this year with a steady flow of new listings. Plus, the lower interest rates are offering buyers more purchasing power in the market than they had at the end of last year.
If you are interested in finding out what your home might sell for in this market, don’t hesitate to reach out! I’m always available to talk about the Ridgewood real estate market. Call or text me, Elizabeth “Liz” Thauer, Broker Associate at Tarvin Realtors at 201-207-3900 or 201-444-0690, email at email@example.com or fill out the form below!
Here are the most recent listings just added to the database in the average price range for Ridgewood. All homes here are priced at $1M or less:
Information based on data supplied by the New Jersey Multiple Listing Service (NJMLS) which does not guarantee its accuracy. Data may not reflect all real estate activity in the market.
Thinking about moving?
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You’ve come to the right place – I’m here to help!
As a Realtor and a long time resident, I know the community very well, and my extensive real estate experience can benefit you, too! I’ve worked with many homeowners to successfully market and quickly sell their properties, and I’ve helped many buyers find their dream homes.
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Call or text me, Elizabeth “Liz” Thauer, Broker Associate at Tarvin Realtors at 201-207-3900 or 201-444-0690, email at firstname.lastname@example.org or fill out the form below!
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