The impact of low interest rates on the Hoboken Real Estate Market

The impact of low interest rates on the Hoboken Real Estate Market


– Are you curious how
the lowest interest rates in over two years have impacted
the Hoboken housing market? Well if you’ve been on the fence about whether it’s time to buy, sell or rent, you’re not gonna wanna miss today’s video. I’m Chris Ozar with an all
new Real Estate Market Report. (upbeat music) Hey, it’s Chris Ozar with Liberty Reality, and in these videos I give you all the real estate data so you can make educated decisions around buying, selling and renting in Hoboken and Hudson County. So let’s just jump right into it. First in this video we’re gonna look at the median home value, and see how it’s changed year over year. Then we’ll look at supply versus demand. And finally we’re gonna
take a look at the impact the lower interest rates have
had on our market so far. So according to the
Zillow home value index, the year to date home values have dropped four and a half percent, from 770,000 as of July 2018 to 735,000 as of July 2019. And this can all really
simply be explained through the laws of supply and demand. So if you look at 2012 to 2017, we had a really good bull run where prices went up over 50%. And this was caused because the levels of supply and demand were very close. But something changed at the end of 2017. And what changed was the levels of supply. So if you look at the graphic next to me you’ll see in July of 2017, while prices were still rising, we had an inventory of
active listings of 153. Now fast forward to July of 2018, we see a significant jump,
up to 243 active listings. And if you fast forward to
as of filming this video on August 12th, we have
268 active listings. So that’s an increase in supply of 75%. And the laws of supply versus demand tell us that if supply goes up then demand has to go up with it, otherwise prices are going to slide down. So let’s take a look and see exactly what happened with demand. So as of July of 2017 we had 63 properties
that went under contract. Fast forward to July of 2018, we had bump, we went up to
74 properties under contract. And this year, in 2019 July, we saw properties drop back down to 63 going under contract. So demand has remained relatively stagnant over the last three years. So if we wanna go a little bit deeper, as of filming this video on August 12th, we’ve seen 22 properties
go under contract. Now if you look at the same time period of August 1st through August 12th of last year we had 28 properties go under contract. So even though we have
these interest rates at the lowest point in two years, they have not had an
impact as of yet on demand. So it’s really something
that we wanna keep an eye on. So what does this all
mean for home values? Well the laws of supply
and demand economics tell us that until supply comes down we’re gonna see prices continue to trend downward as all the inventory and supply continues to outpace demand. So we just have to give it time and let the market do its thing and just gobble up this
inventory over time, until we see the level
of supply come down. And once that happens, then we can see prices pick up again down the road. So what should you do now? Well if you’re thinking about whether it’s time to buy or sell, now more than ever it’s important to work with an agent
that not only understands this market, but has the skill set to get you the very best deal possible. And that’s exactly what I can do for you. So go ahead and click the link below, or reach out to me to schedule a quick 10-15 minute phone consultation so I can help understand
what your looking to do, and can guide you in achieving your goals. Thank you guys so much for watching. I’m Chris Ozar, and until next time.

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