The end of one year and the beginning of another is a time to look back and to make resolutions about the future. It is also a time to take stock of key situations, like the state of the real estate market.
So we turned to Lynne Mortimer, a broker/associate with Coldwell Banker Residential Brokerage who has three decades of experience with the Verona real estate market. According to the statistics her office compiled in late December, Verona is looking pretty good: Sales are up over 100% over November of last year, sale prices are up about 1% over prior year, inventory is down almost 20% and the sales price to list price ratio is almost 99%.
“On a hyperlocal level what we see is very positive,” says Mortimer, who was named the West Essex Board of Realtors (WEBOR) Realtor of the Year in both 2001 and 2016. “While we can’t forecast the future, we can look at the data and feel optimistic.”
Here’s why: Inventory–the number of houses and condominiums being listed for sale–is lower than the past few years, Mortimer notes, and the list-to-sales price ratio (what sellers ask vs. what buyers pay) is higher. The number of days that a listing remained active before being snatched up by a buyer was lower in 2016 than 2015. “This creates the environment for an appreciating market,” Mortimer adds.
Just before Coldwell Banker did its assessment of the Verona real estate market, the U.S. Federal Reserve raised its benchmark interest rate by a quarter point for the first time in a year, to a range of 0.5% to 0.75% from a range of 0.25% to 0.5%. The increase, though modest, could prompt banks to raise their mortgage rates and further increase demand for Verona real estate in the short term. “Talk of higher interest rates will often move buyers off the fence and, with reduced inventory levels, should cause home prices to rise in the short term,” says Mortimer.
While noting that too much of an increase in interest rates or “surprises” in national and world economics could stifle the market, Mortimer is optimistic about 2017. “Jeff Otteau is largely regarded as the guru of forecasting real estate trends. He has always been on point. His Otteau Valuation Group calls for a slow, steady, positive trend to the real estate market, with a levelling off in 2018, and then continued growth until 2022, putting us much closer to where we were in the height of the market in 2005 to 2007.”
Here’s what’s happening in Verona real estate this weekend, from lowest priced to highest in each category:
NEW LISTINGS
421 Bloomfield Avenue Apt. C4: 1 bed, 1 bath condo near Verona Park. Needs updating. $174,900.
2 Claridge Drive Apt. 3FE: 1 bed, 1 1/2 bath condo in full-service high-rise building. New windows, sliders to terrace. $249,000.
19 E. Lincoln Street: 2 bed, 2 bath ranch. Central air, close to NYC bus. $339,000.
1 Claridge Drive #518: 2 bed, 2 bath condo in full-service high-rise building. Renovated corner unit. $340,000.
111 Grove Avenue: 4 bed, 2 bath cape. Steps from F.N. Brown Elementary School. $399,900. Open house Sunday 1 to 4 p.m.
45 Oak Lane: 4 bed, 2 bath cape. Eat-in kitchen, sliders to patio. $499,900. Open house Sunday 1 to 4 p.m.
65 Mount Prospect Avenue: 5 beds, 3 1/2 baths. Master suite occupies entire second level. $629,900.
OPEN HOUSES
111 Grove Avenue: 4 bed, 2 bath cape. Steps from F.N. Brown Elementary School. $399,900. Open house Sunday 1 to 4 p.m.
48 Derwent Avenue: 4 beds, 2 baths. Expanded cape with updated kitchen. $429,000. Open house Sunday, 1 to 4 p.m.
8 Cypress Avenue: 4 beds 1 1/2 baths. Quiet street near F.N. Brown. $499,900. Open house Sunday 2 to 4 p.m.
45 Oak Lane: 4 bed, 2 bath cape. Eat-in kitchen, sliders to patio. $499,900. Open house Sunday 1 to 4 p.m.
41 Hillside Avenue: 3 beds, 2 baths. Updated kitchen, baths. For sale by owner. $573,299. Open house Sunday 1 to 4 p.m.
2 Old Farm Road: 4 beds, 3 baths. For sale by owner. Family room opens to patio. $580,000. Open house Sunday 1 to 3:30 p.m.
37 Gerdes Avenue: 4 beds 2 1/2 baths. Renovated throughout. Open floor plan. Price cut $20,100 to $699,900. Open house Sunday 2 to 4 p.m.
101 Harrison Street: 4 beds, 2 1/2 baths. Colonial with updated kitchen, main bath. New windows. $749,900. Open house Sunday 2 to 4 p.m.
PRICE CHANGES
37 Gerdes Avenue: 4 beds 2 1/2 baths. Renovated throughout. Open floor plan. Price cut $20,100 to $699,900. Open house Sunday 2 to 4 p.m.
