New Jersey Housing Market Trends and Forecast for 2024 – Norada Real Estate Investments

10 minutes, 48 seconds Read

The recent data suggests that the New Jersey housing market is currently exhibiting characteristics of a seller’s market. Despite a decline in closed sales, the substantial increase in median sales prices indicates a demand that outweighs the available supply. Sellers may find favorable conditions, given the rising property values.

While the market has experienced a decline in closed sales, there is currently no indication of an imminent housing market crash. The stability in median sales prices, coupled with the ongoing demand, suggests that the market is undergoing adjustments rather than facing a catastrophic downturn.


Buy/sell, rent/lease residential &
commercials real estate properties.

How is the New Jersey Housing Market Doing Currently?

The New Jersey housing market has experienced notable shifts in various segments, as indicated by recent data released by NJ REALTORS®:

  • Single Family Closed Sales: The number of closed sales for single-family homes witnessed a decline of 17.5 percent, totaling 4,293.
  • Townhouse-Condo Closed Sales: This segment also experienced a decrease, with closed sales down by 12.2 percent, reaching 1,503.
  • Adult Communities Closed Sales: The closed sales in adult communities saw a 9.2 percent reduction, amounting to 571.

These figures provide insights into the current market dynamics, highlighting shifts in demand across different types of properties.

Median Sales Price Trends

Examining the median sales prices across different housing categories reveals interesting trends:

  • Single Family Median Sales Price: Despite a decrease in closed sales, the median sales price for single-family homes increased by a substantial 9.6 percent, reaching $515,000.
  • Townhouse-Condo Median Sales Price: The median sales price for townhouse-condos experienced a notable surge, rising by 12.4 percent to $380,000.
  • Adult Communities Median Sales Price: Despite a dip in closed sales, the median sales price for adult communities increased by 3.2 percent, reaching $335,250.

These price trends indicate a potential impact on property values, influencing both buyers and sellers in the market.

Are Home Prices Dropping in New Jersey?

Contrary to expectations, the median sales prices for various housing types in New Jersey have shown an overall increase. The single-family homes, townhouse-condos, and adult communities have witnessed positive growth in their median sales prices. This suggests that, at least for now, home prices are not dropping but rather experiencing an upward trajectory.

Is Now a Good Time to Buy a House?

Considering the data, the decision to buy a house depends on individual circumstances and preferences. While the market may lean towards sellers, potential buyers should carefully assess their financial readiness and explore opportunities. The increase in median sales prices implies a competitive landscape, requiring strategic decision-making for those looking to make a purchase. Consulting with real estate professionals can provide personalized insights based on current market conditions.

Current Jersey City Housing Market Trends

The Jersey City real estate market has experienced a significant transformation in recent years, becoming one of the most sought-after areas in the region. With its proximity to New York City, excellent transportation infrastructure, diverse cultural offerings, and growing job opportunities, the demand for housing in Jersey City has continued to soar.

Jersey City is the second-most populous city in the U.S. state of New Jersey, after Newark. It is the county seat of Hudson County as well as the county’s largest city. The following are the latest trends in the Hudson County housing market (Source).

New Listings: A 20.7% Increase in 2023

In November 2023, the market experienced a 20.7% increase in new listings compared to the same period in 2022. Looking at the year-to-date data, however, there was a 19.1% decline, signaling fluctuations in the market’s overall inventory.

Closed Sales: A 27.0% Decrease in Year-to-Date Transactions

The number of closed sales witnessed a notable 18.5% decrease in November 2023 compared to the previous year. This trend extends to the year-to-date figures, revealing a substantial 27.0% decline in overall closed transactions. This dip could be attributed to various factors influencing buyer and seller behavior.

Days on Market Until Sale: Slight Increase in 2023

While the days on market until sale showed an 11.8% decrease in November 2022, there was a slight increase of 2.5% in November 2023. This shift suggests a nuanced pattern in the time it takes for properties to be sold, which could be influenced by factors such as buyer demand and property condition.

Median Sales Price: Stability Amidst Minor Fluctuations

The median sales price in November 2023 slightly increased by 3.9%, reaching $530,000 compared to $510,000 in 2022. However, in the year-to-date comparison, there was a marginal 0.4% decrease. This indicates relative stability in the median sales price with minor fluctuations throughout the year.

Percent of List Price Received: Marginal Increase in 2023

There was a notable 2.0% increase in the percent of list price received in November 2023, reaching 100.7% compared to 98.7% in 2022. Looking at the year-to-date figures, there was a slight 0.3% increase, emphasizing a competitive market where properties are fetching close to their listing prices.

Inventory of Homes for Sale: A 25.6% Decrease in 2023

The inventory of homes for sale experienced a substantial 25.6% decrease in November 2023 compared to the same period in 2022. This decline could contribute to the challenges faced by potential buyers in finding suitable properties, potentially impacting the overall market activity.

Months Supply of Inventory: A 9.8% Decrease in 2023

The months supply of inventory decreased by 9.8% in November 2023, reflecting the tightening of the housing market. A lower months supply suggests increased demand relative to supply, potentially leading to a more competitive environment for buyers.

New Jersey Housing Market Forecast for 2024

The New Jersey housing market has experienced notable changes over the past year. The data and forecasts suggest a resilient housing market in New Jersey. Factors such as increasing home values and competitive selling conditions contribute to a scenario less prone to a sudden crash.

According to Zillow, as of December 31, 2023, the average home value in the state stands at $495,287, reflecting an impressive 8.3% increase over the past year. Homes are swiftly entering the pending status within an average of 20 days. The inventory as of December 31, 2023, shows 17,432 properties for sale, with 5,528 new listings.

Delving further into specific metrics, the median sale to list ratio as of November 30, 2023, is 1.015, underscoring the competitive nature of the market. The median sale price in the same period is $441,667, slightly lower than the median list price of $483,000 recorded on December 31, 2023. Notably, 58.8% of sales in November 2023 exceeded the list price, while 28.9% fell below it.

NJ Regional Housing Forecast

The regional forecast for New Jersey provides additional insights. Cities like Trenton, Atlantic City, Vineland, and Ocean City show varying growth rates. For instance, Trenton is projected to experience a 0.4% increase in housing prices by November 30, 2024, marking a steady upward trajectory. On the other hand, Atlantic City is anticipated to see a more substantial 3.2% growth during the same period, indicating a potentially lucrative market for sellers.

Is It a Buyer’s or Seller’s Housing Market?

The New Jersey market, with its 8.3% year-over-year increase and competitive dynamics, leans towards being a seller’s market. The swift turnaround in pending statuses and a high median sale to list ratio underscore the favorable conditions for sellers.

Contrary to a downward trend, the New Jersey housing market showcases positive growth, with the average home value experiencing a notable 8.3% increase over the past year. This indicates a robust and appreciating market rather than a decline in home prices.

New Jersey Housing Market Forecast for 2024
Source: Zillow

New Jersey Real Estate Investment Overview

Investing in New Jersey’s real estate market is an attractive proposition with a steady upward trajectory.  Projected growth in various Metropolitan Statistical Areas (MSAs) suggests positive prospects. Regions like Trenton, Atlantic City, Vineland, and Ocean City anticipate growth ranging from 0.7% to 9.2% by mid-2024.

One of the most significant trends in the New Jersey real estate market is the continued demand for homes in the suburbs. The COVID-19 pandemic has caused many people to re-evaluate their living situations, leading to a surge in demand for larger homes with outdoor spaces. Additionally, many people are now working from home, leading them to look for homes with extra rooms or dedicated office spaces.

New Jersey offers several investment opportunities for real estate investors. One of the most popular options is rental properties, particularly in the urban areas of Newark and Jersey City. Both cities are experiencing significant growth and redevelopment, with several new residential and commercial projects underway. These developments are driving up demand for rental properties, particularly in neighborhoods with good transportation links and amenities.

Another investment opportunity in New Jersey is commercial real estate. The state is home to several major corporations and industries, including pharmaceuticals, finance, and transportation. Commercial properties in these industries, particularly those located near major transportation hubs or in desirable office districts, can offer a steady stream of rental income.

As with any real estate investment, there are potential risks to consider when investing in New Jersey. One of the primary risks is the state’s high property taxes, which can eat into potential profits. Additionally, the state’s regulations can be complex and time-consuming, particularly for landlords and property managers.

Another potential risk is the state’s vulnerability to natural disasters, particularly flooding. New Jersey is located in an area prone to hurricanes and tropical storms, which can cause significant damage to homes and businesses. Investors looking to purchase properties in New Jersey should carefully consider the risk of flooding and invest in properties that are located in less flood-prone areas or have flood insurance.

Jersey City Real Estate Investment Overview

Jersey City is one of the hottest real estate markets in New Jersey, with a population of around 270,000 people. Jersey City is known for its vibrant downtown area, diverse culture, and booming economy. It’s located just across the Hudson River from Manhattan, making it a popular choice for people who work in New York City but want to live in a more affordable area.

Jersey City’s real estate market has been on the rise for several years now, with home values increasing by an average of 3.2% over the past year. The median home value in Jersey City is currently around $578,416, which is higher than the average home value in New Jersey. However, with its proximity to New York City and a booming economy, many people see investing in Jersey City real estate as a wise choice.

One of the factors driving Jersey City’s real estate market is its diverse mix of properties, from modern condos to historic brownstones. This diversity appeals to a broad range of buyers, from young professionals to families. Jersey City’s waterfront area is a popular location for luxury condos and high-rise buildings, offering stunning views of the Manhattan skyline. The city is also home to many historic neighborhoods, such as Paulus Hook and Hamilton Park, where charming brownstones and rowhouses can be found.

Another factor driving the growth of Jersey City’s real estate market is its strong economy. The city is home to many large companies, including Goldman Sachs and JPMorgan Chase, which provide a stable job market for residents. Additionally, Jersey City has a thriving small business community, with many restaurants, shops, and art galleries. The city is also investing in its infrastructure, with new transportation options and development projects that aim to attract more businesses and residents.

Investing in Jersey City real estate can offer excellent returns for investors, with rental properties being particularly attractive. The city’s population is growing, and many people are choosing to rent instead of buy, creating a strong demand for rental properties. With the right property management and marketing strategies, investors can earn significant rental income and build long-term wealth.

The above data tells us that New Jersey’s real estate market offers a range of investment opportunities for both local and international investors. The state’s diverse mix of properties, strong economy and convenient location make it an attractive place to invest in real estate. And for those looking for more urban investment opportunities, Jersey City offers a unique blend of historic charm and modern amenities that make it a standout market to watch. With careful research and guidance from experienced professionals, investors can find success in New Jersey’s real estate market.

Another market that we suggest is the housing market in Colorado Springs, CO. The Colorado Springs real estate market contains several large populations of renters, many practical reasons for people to move here from the surrounding area and across the country, and long-term factors that will drive growth for years to come. Forget the Mile High City and invest in the Colorado Springs real estate market. The Colorado Springs real estate market is notable for how affordable it is compared to many other cities in the Rockies.

Let us know which real estate markets you consider best for real estate investing! If you need expert investment advice, you can fill up the form given here. One of our investment specialists will get in touch with you. Norada Real Estate Investments helps take the guesswork out of real estate investing. We can help you succeed by minimizing risk and maximizing the profitability of your real estate investments.


References

  • https://www.njrealtor.com/research/10k/
  • http://njar-public.stats.10kresearch.com/reports
  • https://www.zillow.com/jerseycity-nj/home-values
  • https://www.neighborhoodscout.com/nj/jersey-city/real-estate
  • https://www.redfin.com/city/9168/NJ/Jersey-City/housing-market                 
  • https://www.realtor.com/local/Jersey-City_NJ
  • https://www.zumper.com/rent-research/jersey-city-nj

This post was originally published on 3rd party site mentioned on the title of this site

Similar Posts

X
0
    0
    Your Interest
    Your Interest List is emptyReturn to Buying
    ×