Residential real estate market heating up | Katonah Real Estate

Are you thinking about jumping into the real-estate market, but don’t exactly know what the temperature of the market is right now?

While commercial properties are lagging in value and the ability to rent them, this home, located at 110 Mountain Ave. in Pompton Plains section of Pequannock, listed for $519,000 but sold for $525,000.
While commercial properties are lagging in value and the ability to rent them, this home, located at 110 Mountain Ave. in Pompton Plains section of Pequannock, listed for $519,000 but sold for $525,000.

Those at the Pompton Plains Weichert Realtors office have been gauging the temperature of both the commercial and the residential real-estate market.

“The commercial real-estate market in our service area of Morris and Passaic counties is not recovering at the rate of the residential real-estate market,” explained Aileen Williamson, SRES and Relocation Certified broker/manager of the Pompton Plains Weichert Realtors office.

“Commercial space for sale and for rent is moving at a slow pace. Days on market is an average of 242 days. Price per square foot must be very competitive and ‘location’ is key in order to secure an ‘intent to purchase’ or an ‘intent to lease’ in a short amount of time,” said Williamson.

She continued, “Our office area of expertise includes Pequannock (Pompton Plains), Lincoln ParkRiverdalePompton LakesWayneWanaque (Haskell), RingwoodBloomingdale, lower West MilfordButlerKinnelon, and Jefferson. Our service area currently contains approximately $22 million of available commercial property, of which we are seeing a two-year supply.”

But on the flipside, the residential market tells a different story, according to Williamson.

“In all but two towns (of the office’s service area of expertise), we are in varying degrees of a seller’s market, in residential real estate sales: meaning the absorption rate is under five months’ supply. We are seeing our listings receiving multiple offers, which are resulting in full asking price or higher in some cases. Inventory is low and the still very attractive interest rates are starting to rise, which is driving more buyers into the market at this time,” said Williamson.

“The residential real estate market is ‘hot’!” said Williamson. “Buyers realize that now is the time. Savvy buyers realize the need to offer asking price with a willingness to pay over asking price in areas of a ‘seller’s market.’”

Williamson added, “Although prices are edging up, the price of homes in our area can still be considered discounted. Savvy sellers that could not sell in the downturned market are listing their homes slightly below FMV (Fair Market Value) and reaping the rewards of top dollar and over asking sales prices. These closings are just beginning to drive up appraised values in our market area. Appraised value has been a huge concern over the past seven years; this is improving.”

So what would be a good investment for someone trying to get into the market and trying to make a possible profit?

– See more at: http://www.northjersey.com/realestate/214564271_Residential_real_estate_market_heating_up.html#sthash.YeCBg9KH.dpuf

 

Residential real estate market heating up – NorthJersey.com.

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