Bergen County Market Update – Investor Activity down 45% – 9/8/2023

Jay Costa

Agent
Investor
Builder

Investor Pull Back

As of the end of the 2nd quarter of 2023, investor activity is down 45% from the same time the year prior.This, of course, is when pending sales in general is down 31% nationwide, but it still out-paced the overall market activity trend by 14%.

These are national housing market figures, but I have seen similar pull backs in our local area. The reason for this is the interest rates are eating into the buying power of buyers, and therefore the potential profit of house flippers. In addition, the interest rates are eating into the monthly cash flow of long term rental property investors.

New Home builder sentiment also went down sharply recently when the 30 year mortgage rate spiked well above 7%.

Granted, the home builder sentiment index is based on the large national home builders like Toll Brothers and Pulte Homes. So the small local builders may feel differently.

In our market, it seems like there is certainly a pull back by rental investors, and house flips are very scarce. but new home building is slightly more active. We are definitely seeing less single family spec homes being built, but the demand for 2 family duplex properties, as well as townhomes is still very active.

As always, please let me know if there is anything I can do to help you.

Enjoy Your Weekend!
-Jay

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