Saturday, May 26, 2018

Bergen County, NJ Housing Market in Downward Spiral

(Click on the image to enlarge)

Median Sale Prices rose from $410K to $475K (the trendline suggests the July peak of $500K was an outlier) in mere six months. Obviously, this meteoric rise was not sustainable as it was not backed by reciprocated strengthening of fundamentals. Conversely, the trendline is also suggesting that the abrupt retreat to $410K was an aberration too ($425K is statistically more significant).

The normalized SPSF trend (bottom chart) amply confirms the primary trend, with very similar peak and trough outliers. Neither trend shows any emerging support, bottom formation or sideways consolidations yet, signifying clear and present downside risks.

- Sid Som, MBA, MIM
President, Homequant, Inc.
homequant@gmail.com

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