January Purchase Activity – Highest Levels in 4 years

As the seasons change and Autumn turns to Winter, many realtors and sellers go into hibernation for a few months until the Spring buying season comes to fruition, and the Earth thaws out.  The Winter slowdown is almost 60% due to the cold.  Nobody wants to trek through cold, snow, and slush, nor do they have an interest to move their furniture during this time.  This year is proving to be very different and we can thank the unseasonably warm weather for it.  Here we are in Mid-February when the cold should be piercing through the heaviest of coats, however today I think I will take my son to the pier to play since it will be like the tropics topping 60 degrees today on Feb 22.

As an example, over the last 30 days, buyers placed 61 condos under contract from January 22 to February 22.  Aside from a single month in 2010 during the First Time Homebuyer Tax Credit, February will see higher DABO’s or Under Contracts than any other winter month over the last 4 years.

At the moment there are only 216 condos for sale in Hoboken.  In comparison to 36 months past, we have the lowest inventory level of all of those 3 years.  Why?  Weather, low rates, increased confidence, positive NJ job growth, etc… Buyers are buying like crazy right now and sellers are expected to price their homes more aggressively then ever in 2012 then they have over the last few years.

In the suburbs, Montclair Pendings have shot up 31% Year over year.  Montclair sales volume was down in January but buyers have been going crazy putting over 35 homes under contract in the last 30 days.  Even with a 15% fallout ratio, those numbers for February or March closings would help push those months to highest levels in years.

I mentioned in my “End of Year” blog that this winter, regardless of the weather, would be stronger then recents past.  My expectations have been exceeded and I am expecting a really strong Spring season, with buyers starting to buy in droves……NOW.  Now is the time to get with us and preview some homes or get us in your house to figure out a good listing price to get you out of your house and into a new one.

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