Amidst the uncertainty of the COVID-19 pandemic, the New Jersey real estate market has slowed down. However, activity in New Jersey’s real estate market has not come to a complete halt. As compared to last year, there has been an 8% drop in the number of homes sold in Burlington County, despite the shutdown of numerous non-essential businesses in the economy. This means that despite the slowdown, there is still activity within the real estate market, and people are still buying and selling property.
Property Sales in New Jersey
Although spring season is predicted to have the highest real estate activity annually, the pandemic has affected the New Jersey real estate activity. Buyers have put off their search for property until the situation gets better, and sellers are being extra careful by refraining from inviting people to view their homes.
In New Jersey, the list of essential services now includes real estate activity, thus allowing real estate activity to resume during this period. In addition, the governor of New Jersey has also authorized buying and selling of property during this period.
Regulations Implemented on Short-term Leases
In response to the pandemic, regulations have been implemented on short-term leases. Counties and towns of New Jersey are authorized to restrict motels, private residences, boarding houses, and hotels from accepting new tenants since April. This came after the rising number of people who have tried to relocate to areas that are less hit by the pandemic. The order intended to make the citizens of New Jersey remain in their primary residence during the pandemic.
As a result of the new regulations, owners of guesthouses such as Airbnbs are impacted by the lower rate of occupancy. However, it is likely that activity will pick up once the health crisis stabilizes.
Mortgage Payment Relief in New Jersey
The CARES Act signed by President Trump seeks to provide aid to those who are facing financial difficulty in paying bills and mortgages. Several major financial institutions and banks have come together to help by extending to homeowners a 3-month grace period for any mortgage payment, as well as relief from other fees and credit score charges during this period.
Furthermore, a new regulation signed prevents tenants from being removed from residences due if they are unable to pay rent. A federal fund has also been set aside for the Housing Choice Voucher Program. This program aims to help prolong stable housing for property owners and tenants and to keep the real estate market afloat.
Real estate agents say that although the New Jersey real estate market is still unpredictable in the near future, it is likely that activity in the real estate market will increase once the pandemic gets better. Property owners and prospective buyers interested in buying and selling property should watch the development of the pandemic, as well as stay updated on real estate market trends. If you are looking to buy or sell a property during this period, you are welcome to contact us at NJLux today.
