Clifton NJ housing market update

We last checked in on the Clifton single family home market in 2014, At the time the market was gradually appreciating at an average rate of just over +1% per month (+13.2% year over year).

Checking back in just over 2 years later, we find that single family pricing continues to appreciate.

The rate of change has dropped, though to an average rate of +0.4% (or +4.8% year over year).

This reason for this is likely two fold. In 2014, foreclosure and distressed properties made up a greater percentage of the total sales volume than we are seeing in 2016 and the first couple of months of 2017.  Looking back to 2013 and 2012, the market was affected to a much greater degree by short sales and REO property than in late 2014. The rate of the decline in this ratio probably contributed to the average price increases seen over the period analyzed as we progress to a more normalized market which is less influenced by REO and short sales. Additionally we saw some slight upticks in mortgage interest rates which may have played a role in what we’ve observed.

What does this mean? Well, for one it seems like the short sale and REO overhang on the market has increasingly worked its way out of the Clifton market and the changes we see going forward will be increasingly tied to more normal market influences such as the economy and interest rates.