New Jersey, like much of the rest of the country, has been experiencing significant amounts of growth within its housing market.
Home prices have risen over the last few years, but it is expected that the New Jersey housing market will be slowing down over the rest of 2018.
Influencing Factors Within the New Jersey Housing Market
There is a lot to be said about the New Jersey housing market and the surrounding circumstances that are influencing the things that are happening.
Vacancies of industrial proportions are at all-time lows, which is especially significant because this has not been the case in years prior. Reasons for this improvement seem to come from the way that landlords are updating existing infrastructures, thereby encouraging businesses to set down roots in New Jersey.
As a result, the industrial market is growing, increasing jobs. The increase in employment is leading to a strong job market, which in turn boosts the economy and housing market.
Limitations of the New Jersey Housing Market
NJ Lenders makes a good point when discussing the limitations of the New Jersey housing market. They explicitly state that while the latest forecast is stronger overall, when examining specific towns, metro areas, and cities, the real estate varies a lot.
Keep in mind that home prices are pushed by local economic conditions which vary greatly across the state of New Jersey. The amount of diversity in local real estate markets has a significant impact on the overall housing costs.
With that in mind, the housing market is expected to slow down and eventually balance out due to affordability as well as location.
It is also expected that mortgage rates are going to increase to more than 4% and possibly up near 5% by the end of 2018.
A Few Different Places to Live in New Jersey
New Jersey is located in a prime spot as it offers easy and quick accessibility to New York City among other top destinations. Add a low cost of living, and New Jersey becomes appealing very quickly.
Trenton is the capital of New Jersey and is one of the most inexpensive cities to live in for the area. The housing prices are roughly 20% less than the national average which makes it an attractive option.
Despite the lower cost of housing, other costs of living tend to be higher than the national average by as much as 12% depending on the expense.
As Trenton borders Philadelphia, it is also considered as part of the New York metro area as per the U.S. Census Bureau. Unlike other cities that are part of the metro area, this city is much lower by comparison when considering the various costs of living.
Englewood Cliffs, NJ
On the other end of the housing cost spectrum lies Englewood Cliffs. The housing costs here are more than five times the national average, so expect to pay a pretty penny to live among the swells in this small town.
With a population of just over five thousand people, Englewood Cliffs boasts low taxes and close proximity to major metro areas like New York City.
Buyers can expect price tags like $1.7 million and up to $3.85 million. Even with the steep price, the demand is still high to live in this prime piece of suburbia.
Englewood Cliffs makes Hoboken look like a steal at only just over 2.5 times over the national average. Located in Hudson County, it is also considered to be part of the New York metro area.
The median home value in Hoboken is right around $790k with home values continuing to increase. The median price per square foot is approximately $750. Buyers can expect to find homes on the market listed at a median price of around $800k.
With a market health score of 6.4 according to Zillow, the growth is expected to continue over the next year. Being part of the New York Metro area, it’s easy to see why Hoboken commands such high price points.
Statistics for the New Jersey Housing Market
Housing in New Jersey has a median price value of just over $313k with home values having increased by more than 10% over the previous year. Zillow is predicting that it will rise another 4% over the coming year.
The current median price per square foot is $171 with a median listing price of around $300k. Zillow reports that market health has gone down with an average of 136 days on the market for available housing.
New Jersey has a wide range of housing prices that start around $90k in Trenton and go to up near $350k in Edison, and even up to over three million in Englewood Cliffs.