This 4-Bedroom NJ Ranch Exposes the Imbalance in Today’s Housing Market

Earlier this year, two homes were listed for sale at comparable prices around the same time. One of them received 25 bids, whereas the other didn’t attract any offers.

Several elements influence demand, such as the property’s condition and the selling price established by the owner. However, at present, location stands out as an influential aspect.

The housing market in the Northeast and Midwest has a higher number of potential buyers compared to the availability of properties. However, certain areas within the Sunbelt region are experiencing an influx of homes listed for sale.

In locations such as Wyckoff, New Jersey, the disparity is evident. A four-bedroom ranch-style home listed at slightly more than $1.1 million went up for sale in early February and received numerous bids within a week. The successful purchasers ended up agreeing to pay approximately $200,000 above the original listing price.

However, in Miami, a six-bedroom property featuring an impressive staircase and a swimming pool has remained unsold for almost two months despite being on the market. In response, the sellers reduced the price by $9,000 to $990,000.

"There are significantly varied circumstances for vendors based on their location," stated Cara Lavender, who works as a research manager at John Burns Research and Consulting.

In recent years, almost all markets have been booming with limited deals available. Currently, those markets that experienced rapid growth are now seeing the steepest declines. Should this weakening trend extend further into the broader housing sector, it might hinder overall progress. The U.S. economy that has recently shown signs of deceleration .

Builders in South Florida are offering substantial enticements to offload recently constructed houses. Property investors, part-time residents, and those looking towards retirement are listing their properties due to storm-related damages and escalating insurance costs, as mentioned by Lavender. A study carried out by John Burns in March revealed that approximately 78% of real estate agents report an excess of home sellers over potential purchasers in this region.

In the northeastern region, new building projects face restrictions due to limited land access and zoning regulations. According to Lavender, numerous potential sellers are delaying their listings to benefit from current low mortgage interest rates. The study revealed that 81% of real estate agents reported having more buyers than sellers in this area.

Although each local housing market varies, the nation as a whole is experiencing an increasing diversity in how long houses remain listed for sale, as reported. Realtor.com An analysis across all states reveals that the one experiencing the quickest real estate turnover in February was Rhode Island, with homes staying listed for an average of 37.5 days. Conversely, the most stagnant market during this period belonged to Montana, where properties remained unsold for approximately 108.25 days on average. This marks the largest disparity observed between any two states within a single month of February since 2020.

Home sales rose nationally in February And generally, costs continue to rise. An index tracking prices in 20 metropolitan areas shows this trend. rose 4.7% From a year prior in January, New York experienced the largest yearly increase at 7.7%, whereas prices in Tampa dropped by 1.5%. According to S&P Dow Jones Indices, the disparity in price increases among the 20 cities has become more pronounced when compared to this same period last January.

Liz Ruckdeschel, an agent with Coldwell Banker Realty, believed that 539 Covington Place in Wyckoff, New Jersey, would attract significant interest from buyers.

In the northern New Jersey suburbs near New York City, which are renowned for their excellent educational institutions, bidding battles remain frequent, as per her statement. She mentioned that ranch-style houses similar to the property she’s marketing appeal particularly to young households and older individuals seeking to transition into smaller, single-story residences.

The selling points featured a substantial marble-topped kitchen island, the decorating scheme's muted hues, and a bespoke garden. Nonetheless, the roofing needs updating, and the entrance stairs require some fixing up.

Seller Kate Fishbein expected to attract a buyer eventually but was astonished by the unexpectedly intense interest.

"It was quite overwhelming," Fishbein stated, as she had anticipated receiving roughly ten offers. She and her spouse, Jordan Fishbein, purchased the property approximately thirteen years back for nearly $630,000. Over time, they have renovated and upgraded their residence.

They have signed an agreement for a bigger house in the same area, with their offer being selected among several others.

During the pandemic, Monica Cardoso, a Miami-based real estate agent from eXp Realty, noted that properties akin to 15210 SW 15th St. were highly sought after. Potential buyers would queue along the street for viewing opportunities, eager to submit their bids right away.

However, up until now, there has been just a single unofficial low-ball offer for 15210 SW 15th Street. An open house held recently drew merely a few potential viewers with no serious intent.

Cardoso is hoping a buyer will want a home that could accommodate a multigenerational family with a large family room, high ceilings and backyard Jacuzzi and pool.

This property comes with several disadvantages that could make it less appealing if it were located in New Jersey as well. Its rear side faces a bustling thoroughfare, and the interior design requires modernization.

Chastity Zaldivar, the owner, purchased the house along with her spouse, Rogelio Zaldivar, approximately 20 years ago for roughly $575,000, and she is eager to offload this property. They, together with their two grown-up boys, aspire to acquire a five-bedroom residence located around an hour’s drive away, priced at close to $600,000.

They intend to use part of the earnings from selling this house to reinforce their retirement savings and clear their son’s educational debts. However, they cannot put in a bid for the new property until they have sold this current one.

Given the sluggish market conditions, they remain optimistic that the new house will still be accessible.

Send the letter to Veronica Dagher. Veronica.Dagher@wsj.com