Historic and upscale, Ridgewood is a community that has been hailed as one of the best places to live in the United States. Ridgewood, New Jersey, located just about 20 miles outside Manhattan, offers the kind of peaceful suburban living that, for many, is what dreams are made of. From the historic homes throughout Ridgewood to the welcoming parks and community areas, Ridgewood has charm to spare.
For decades, Ridgewood has been known as a haven for affluent individuals and families. However, after the COVID-19 pandemic, Ridgewood has become even more popular. Real estate in Ridgewood has become intensely competitive. It's not uncommon for buyers to enter bidding wars over certain Ridgewood properties. However, you can start your real estate journey with confidence and precision by understanding the economic factors that affect the Ridgewood real estate market and what the market currently looks like.
The real estate market in Ridgewood
Ridgewood has one of the highest concentrations of high-income individuals
in the United States. Home to more than a dozen historic places and graced with a booming local economy, thanks in part to the high number of commuters that come in from New York City, Ridgewood has something for everyone. Homes here are spacious and luxe, with the best amenities and large yards.
The real estate market is going strong in Ridgewood, echoing the state of the industry in many cities and states around the world. Buyer demand is strong
, even outpacing the available homes on the market. Still, things are stabilizing a bit compared to the influx of buyer excitement that took place during COVID-19. Buyers generally aren't buying properties sight unseen and, in most cases, are still wanting to negotiate with sellers.
What are the economic factors that affect real estate in Ridgewood?
Many experts believe that the wealth of a nation can be judged based on how many people can buy and sell real estate. There are a lot of factors that go into the overall health of the real estate industry, from home availability to the demographics of buyers. These specific factors play a strong role in shaping real estate in Ridgewood.
Historically, interest rates have always greatly impacted the real estate industry. Interest rates affect how easily many people can buy homes. Buyers could be dissuaded from investing in real estate if interest rates are too high. Conversely, if interest rates are too low, mortgage rates tend to be lower, which can create greater demand for properties.
The overall economy
If the economy isn't in a good place, almost every industry suffers, including the real estate market. Certain economic indicators can signal the real estate market is healthy, including employment data, the price of goods and services, and manufacturing activity. If the economy slows, home sales numbers tend to lag. People generally feel more comfortable buying homes when the economy is doing well.
The real estate market naturally slows if there aren't enough properties for buyers to purchase. Demand outpaced supply in most cities during and immediately after the COVID-19 pandemic, with buyers racing to purchase homes in quiet, residential areas. While the market has normalized compared to 2020, certain high-demand cities and states still struggle to meet buyer demand. Ridgewood is one such area, with homes selling almost immediately after hitting the market and, in many cases, multiple buyers vying for the same property.
Shifts in the demographics of an area, including the age, gender, and income of homebuyers, can impact the real estate market. Population growth can also play a significant role. For example, if many families with children move out of a specific area, there might not be much demand for single-family homes. Demographics in cities and states are constantly shifting over time. By paying attention to local statistics, real estate investors can get a solid sense of the real estate market and where it could be heading.
Predictions for the future of Ridgewood real estate
Real estate in Ridgewood might be intensely competitive at present, but there are signs that the market is starting to normalize. According to Newsweek
, some experts predict that home prices might start dropping but that the historically low inventory will likely prevent a total crash. This might help more new buyers get the homes they're looking for, even as most sellers can still profit from their properties.
For months, the real estate industry nationwide was plagued by short supply and frantic bidding wars. Recently, with things steadying, investors and anyone hoping to buy or sell property in the near future might be able to look at those trends in the rear-view mirror.
Work with an agent to buy or sell property in Ridgewood
Even if the market cools, look for things in Ridgewood to remain competitive for some time. This is particularly true for historic or luxury properties, which tend to go very quickly and often for higher than the asking price. If you're looking to buy or sell property in Ridgewood in the near future, plan on working with a local realtor to maximize your chance at success and get the best deal.
An agent can give you deep local insights into the Ridgewood market, helping you navigate the landscape and understand what buyers and sellers are looking for. A realtor can also act as your advocate throughout the process. Whether you're buying or selling, there are a lot of intricacies involved and a lot of unique deadlines to keep track of. With the assistance of a realtor, you don't have to go the distance alone. Understanding the real estate market in Ridgewood can be a time-consuming task. Count on an expert realtor to help you gain the knowledge you need.
The Ann + Melinda Group can help with real estate in Ridgewood