Here’s your Real Estate Market Report for Ridgewood as of early January 2021. The market in Ridgewood stayed strong through Fourth Quarter 2020. Fortunately, with the help of low interest rates, the market still shows signs of strength moving into 2021. With the hot sellers market continuing in this new year, we expect some really exceptional properties to become available, which is great news for buyers, too!
Last year the traditional Spring real estate market in Ridgewood was delayed due to the pandemic and the partial shutdown in March and April. Then, once in-person showings and open houses resumed, the pent up demand pushed the market into overdrive. The market gained momentum through the Summer and continued through the end of the 2020.
Why is Ridgewood in Demand?
Since people have been working remotely, extra space and more square footage is now a real necessity for many – especially those living in apartments. Consequently, many buyers have accelerated their plans to move to suburbs in search of more space. As a result, demand for single family homes Ridgewood increased dramatically last year and continues in 2021.
Currently, Ridgewood home sales remain strong while the local housing supply struggles to keep up with demand. As a result, competition for the well priced properties has led to to multiple offers and bidding wars. 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
Although the very strong demand has created a sellers market, there is still good news for buyers with the exceptionally 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 homeowners shift their focus from the Holidays to the new year ahead, the supply of new listings for buyers will increase thus sustaining the strong market in 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 December was very low, only 0.81 (calculated in months). These very low absorption rates through the end of 2020 reflected the imbalance of supply and demand for homes and indicates a strong sellers market in Ridgewood. However, the absorption rate typically falls during the month of December due to 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 December when the 0.81 absorption rate was calculated, there were only 26 active listings. Therefore, based on the fact that 385 homes closed in the previous 12 months, there was less than one month supply of listings on the market at that time. (For comparison, at the end of November 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 a 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 – Some Exceptional Listings Hit the Market
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.
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 firstname.lastname@example.org.
Median Sale Prices in Ridgewood
Quarterly Median Sale Prices, Units Sold and Year over Year Comparisons
According to the New Jersey Multiple Listing Service (NJMLS), 102 single family homes in Ridgewood sold during Fourth Quarter 2020 (up significantly from the previous year during the same time period when only 64 homes sold). The median sold price for the 102 homes sold Q4 2020 was $805,500 which was 2% higher than the $789,000 median for the 64 homes sold during Q4 2019.
10 % Increase in Year Over Year Median Sold Price and 16% Increase in Units Sold
In addition, we track the median sold prices each year. The median of all 385 homes sold in 2020 was $848,000, compared to 331 homes sold with a median of $774,000 in 2019. That’s a 10% increase in the median sold price and a 16% increase in units sold from 2019 to 2020.
Looking back over this unusual year
The higher year over year median sold 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 2020.
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 Holidays are behind us, this is a great time to find 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 ever week as we head into 2021.
Just to be clear, not all homes are not selling for 10% more than they were last year. Instead, the increased median sale price indicates that more homes at the upper end of the market sold last year 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 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.
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