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With more U.S. states reopening for business this summer, and as people start to return to work, we can expect the economy to begin improving. Most expert forecasts indicate this economic recovery will start to happen in the second half of this year . As we get back to work and the financial landscape of the country begins to turn around, many experts also agree that real estate has the potential to lead the way in the recovery process. According to Ivy Zelman of Zelman & Associates: “Housing will fare better than expected during this severe downturn.” In addition, CNBC notes : “Mortgage demand from home buyers shows unexpectedly strong and quick recovery…The quick recovery has surprised most forecasters.” Robert Dietz, Chief Economist and Senior Vice President for Economics and Housing Policy of the National Association of Home Builders (NAHB) says : “Overall, the data lend evidence to the NAHB forecast that housing will be a leading sector in an eventual economic recovery.” One of the big reasons why housing has the potential to be such a driving force is the significant impact it has on the local economy. This impact is particularly strong when a newly constructed home is built and sold. According to a recent study by the National Association of Realtors (NAR), the average new home sale has a total economic impact of $88,416. As outlined in the graphic below, this is a combination of income generated from real estate industries, expenditures, and new home ...
Located in Northern New Jersey, Hudson County has made a name for itself as the “Gateway to America”. Situated across the Hudson River from New York City, the area is one of the world’s largest media market and a recent hot spot for growth. The county’s popularity is no surprise due to its extensive transportation system, close proximity to New York City, and growing hospitality industry. Home to premier medical and higher education centers, Hudson County real estate boasts attractive views of the Hudson River and an urban lifestyle that promises frequent corporate and sporting events. In light of the COVID-19 pandemic, the press has pointed to residents fleeing the city in exchange for suburban and rural living options. However, we’re here to speak on the positive aspects of an urban lifestyle and how Hudson County has benefited as people are moving away from New York City. We sat down with Nicole Kopec of Nest Seekers International as well as Michael Hern of Prominent Properties Sotheby’s International Realty and CEO of Luxury Living by Michael Hern to discuss the Hudson County Urban Market. Fleeing to the Suburbs? In response to recent press about those fleeing the cities and taking to the suburbs, Kopec commented that, "This is a natural progression. Families outgrow their homes in urban cities all the time. They sell and move to the suburbs but guess what, while they're on their way out another is always on their way in.” New Jersey “Gold Coast” cities such as Jersey City, Hoboken, and Weehakwen offer a blend of both lifestyles. With many clients ...
As we enter the summer months and work through the challenges associated with the current health crisis, many are wondering what impact the economic slowdown will have on home prices. Looking at the big picture, supply and demand will give us the clearest idea of what’s to come. Making our way through the month of June and entering the second half of the year, we face an undersupply of homes on the market. Keep in mind, this undersupply is going to vary by location and by price point. According to the National Association of Realtors (NAR), across the country, we currently have a 4.1 months supply of homes on the market. Historically, 6 months of supply is considered a balanced market. Anything over 6 months is a buyer’s market, meaning prices will depreciate. Anything below 6 months is a seller’s market, where prices appreciate. The graph below shows inventory across the country since 2010 in months supply of homes for sale. Robert Dietz, Chief Economist for the National Home Builders Association (NAHB) says : “As the economy begins a recovery later in 2020, we expect housing to play a leading role. Housing enters this recession underbuilt, not overbuilt. Estimates vary, but based on demographics and current vacancy rates, the U.S. may have a housing deficit of up to one million units.” Given the undersupply of homes on the market today, there is upward pressure on prices. Looking at simple economics, when there is less of an item for sale and the demand is high, consumers are willing to pay more for that item. The undersupply is also prompting bidding wars, which ...
The pandemic has convinced many urban-dwellers that it’s finally time to give up on living in the city. Renters and owners alike are feeling cooped-up and uncertain about the future. As a response, many are making plans to leave the city and not just for short-term stays in weekend houses, as was seen when the pandemic first occurred, but for more permanent housing in the suburbs. While some of the recent moves have been a product of accelerated plans that had been living on the back burner, others may have acquired a taste for suburban (or even rural) living while sheltering with their parents in spread-out neighborhoods or log cabins. And even after decades of apartment living, those that have called the city their home are seriously considering trading their small rental for their own white picket fence. A Rise in Desire for Suburban Living The Harris Poll recently surveyed 2,000 Americans to determine if the COVID-19 crisis had sparked a desire for people to move. Of those currently living in urban areas, 39% indicated that the pandemic had caused them to consider moving to a less densely populated area. According to FlatRate Moving, between March 15 and April 28, there was a 74% increase of moves from New York to Connecticut, 38% increase of moves from New York to New Jersey, and a 48% jump of moves from New York to Long Island compared to the same period last year. And while some are renting temporarily to try and escape the worst of the pandemic, a considerable number of those renters are converting to buyers. However, others are transplanting with the immediate intention to buy. Unsure of whether or not ...
One of the more recognizable side effects of the COVID-19 pandemic is the dramatic increase in the number of people working from home. The shift to remote work has caused many of us to look at our current homes in a whole new light. And whether you’re logging hours from your couch or still searching for a Zoom-appropriate workspace, it’s not uncommon to be looking for a home office upgrade. Our “New” Normal: The Realities of Working From Home Global Workplace Analytics conducted an online survey between March 30 and April 24, 2020 asking over 2,600 global employees on their feelings towards working at home. Of those surveyed, over 77% of the workforce recorded that they would like to continue working from home at least weekly once the pandemic has ended. Some employers are embracing the reality of their employee’s responses. Steve Ozonian, CEO of Williston Financial Group, believes that the remote workforce will have a dramatic impact on our ‘new normal’. Citing that the shift to remote work will, “make it less stressful for people because the commute is one of the worst parts of working and we are going to have cleaner air because of it”, Ozonian also predicts that the need for commercial office space and the average commute is going to plummet. When speculating on the future of remote work, Ozonian went on to state, “I believe it will be 50% -- that's probably the average amount that will stay at home because it is working so well. You are going to have happier employees and as long as they are productive and the quality of the work product is as good or ...