Here’s your Real Estate Market Report for Ridgewood as of early February 2021. The market usually takes a brief break in January, but the outlook for the single-family home sales going forward is very positive and the Spring Market is expected to start earlier this year due to the 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 is Ridgewood in Demand?
Since people have been 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 been accelerating their plans to move to suburbs in search of more space. As a result, demand for single family homes in Ridgewood increased dramatically last year and continues into 2021.
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 move quickly. As a result, the increased number of buyers interested in the same property leads to competition and multiple offer situations. Not surprisingly, many homes have gone under contract very quickly and sold at list price or above.
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 low interest rates continuing into the foreseeable future. Additionally, homeowners are very motivated to list their properties for sale as soon as possible to take advantage of the busy market. Hopefully, as we head into the Spring Market (which really begins in February/March), the supply of new listings for buyers will increase significantly thus sustaining the strong market through 2021.
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 0.79 (less than one month). These very low absorption rates through the end of January 2021 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 0.79 absorption rate was calculated, there were only 26 active listings. For comparison, at the end of November 2020 the absorption rate was 1.77 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 and starting to look for a new one, 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 in Ridgewood, buyers have also seen some benefits from the fast paced market. Those who have acted quickly have been able to take advantage of the selection of high quality, renovated homes for sale, and amazing listings will continue to come on the market every week as we head into the new year. Check out the current homes for sale in Ridgewood.
Some gorgeous 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 their gone? Call or text me, Elizabeth “Liz” Thauer, Realtor at Tarvin Realtors at 201-207-3900, email at email@example.com.
Looking at Past 12 Months
Units Sold Up Over 20%
According to the New Jersey Multiple Listing Service (NJMLS), 397 single family homes in Ridgewood sold during the past 12 months (2/1/20-1/31/21) which is significantly higher compared to the same 12 month period last year (2/1/19-1/31/20) when only 330 homes sold. That’s a year-over-year increase in units sold of 20.3%.
Median Sale Price Up Over 8%
The median sale price for the 397 homes sold during the past 12 months (2/1/20-1/31/21) was $838,000. This is 8.27% higher than the $774,000 median sold number from the same time period the previous year (2/1/19-1/31/20).
Looking back over this unusual year
The higher year-over-year median sale price and increase in number of homes sold reflected very heated market through the end of 2020. There was heavy demand for homes in Ridgewood during most of 2020 and will continue in 2021.
As reflected on the chart titled “Ridgewood Median Sale Price”, the median list/sold price has climbed to almost $900,000. For comparison, the median sale price during the same period in 2019 was $775,000.
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.
Information based on data supplied by the New Jersey Multiple Listing Service (MLS), which does not guarantee its accuracy. Data may not reflect all real estate activity in 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 coming soon, 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 8-10% 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. Plus, it’s important to remember that the traditional Spring Market was delayed for at least a month due to the pandemic. As a result, the real estate sales season last year was extended and is expected to pick up again in the next few weeks. The Spring Market will likely come early this year with a steady flow of new listings. Plus, the low interest rates are offering buyers much more purchasing power in the market.
Wondering what your home might be worth now? Find out instantly with our 15 second home value calculator.
In addition, I’m always available to talk about the Ridgewood real estate market. If you are interested in finding out what your home might sell for in this market, don’t hesitate to reach out! Call or text me, Elizabeth “Liz” Thauer, Realtor at Tarvin Realtors at 201-207-3900 or 201-444-0690, email at firstname.lastname@example.org 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.
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