Overview
New Jersey’s real estate market is currently a seller’s market, due to the increased demand and lack of inventory of houses. Nevertheless, the Garden State is one of the most popular places to live in the country.
If you’re looking for a spot to either find your dream home, or build it with new construction, we’re going to help you navigate the New Jersey housing market. The key is to focus on the areas that work best for you.
We’ll evaluate the top emerging markets in various regions, identify local market trends, and give you insights into which major cities, towns, and suburban areas made the grade.
In recent years, the real estate market nearly everywhere has exploded with unprecedented growth. Sellers are happily enjoying significant returns on their properties, often selling them for higher than expected sales prices.
The current median sales price is $560K for single family properties. Over the previous year, closed sales of all properties in New Jersey rose 12.5%, showing continued growth. The housing demand is high from potential buyers, while the inventory of single family homes declined by 6.1%.
Market Trends
New Jersey’s housing market has shown steady growth in home prices, which are up by 11.7%. Some of the current trends include finding property in mixed use developments, adult communities, and townhouses and condos. This is in addition to the evergreen demand for the traditional single family home.
The biggest recent growth in New Jersey’s housing market has been in townhomes and condos. They have slightly better affordability, with the median price at $430K.
Of course, these home values are subject to regional variations. Adult communities offer even more affordability, with a current median price of $360K.
Rising Interest Rates
The New Jersey housing market is a bit daunting for some potential investors. Along with rising home sales prices, interest rates have risen sharply. Now, more and more buyers are facing affordability challenges, mainly due to the unprecedented rise in prices and interest rates.
In New Jersey, for a 30-year fixed rate mortgage, the current interest rate is 6.834%. If you take out a 15-year fixed rate mortgage instead, the rate decreases to 6.028%. This is only a starting point, as interest rates are different for everyone, depending on a myriad of factors.
For example, your credit score, how much of a down payment you’re investing in the property, and your debt-to-income ratio. Each lender will require different things. The New Jersey market is a terrific place to find a wide range of prices on real estate, depending on your budget.
Many of today’s buyers are interested in investing in places that offer a unique blend of amenities. The New Jersey real estate market has a lot to offer, including good schools, easy access to beautiful beaches, and a vibrant cultural scene.
Investing in real estate is also an investment in your future! Let’s talk about specific emerging markets you might want to invest in.
Location, Location, Location!
The New Jersey real estate market has many different prime locations in high demand, from first-time buyers to seasoned investors. Sellers can afford to be choosy, and properties are selling faster than expected. If you’re looking at the New Jersey real estate market, here are some ideas.
Jersey City
f you’re looking for cultural diversity and a thriving nightlife, you’ll fit right in with Jersey City residents. The real estate market here is made up of more renters than homeowners, which offers an opportunity to invest in multi-family properties.
Home prices here are currently at a median property value of $534,500, and median rent is $1,902. It also has a dazzling arts scene, and it’s an easy commute to NYC from many neighborhoods here.
Ocean City
The market in Ocean City is highly competitive, and is ranked as one of the best places to live in New Jersey, according to Niche. Selling property here happens quickly, as they don’t stay on the market long.
Prices are higher, with the median home price at $719,100, and most residents own their homes. Additionally, there are high quality public schools, a low crime rate, it’s good for families, and there’s lots of outdoor fun to be had!
Atlantic City
The real estate market in Atlantic City, New Jersey is quite different, in terms of property prices. Here, the median sale price is $189,600, a stark difference when you’re a first-time buyer or investor. The median rent is $1,084, and 70% of its population rents their properties.
It’s primarily a seaside resort town on the Jersey shore, sometimes called the “East Coast Vegas.” Atlantic City’s nightlife is vibrant, with casinos, amusement parks with illuminated rides, and shopping and entertainment on the famous boardwalk!
However, some factors you may have to compromise on. For instance, the crime rate is on the rise, and good jobs are hard to come by. The current unemployment rate is 13.94%. The thing is, here you can find homes in all different price ranges, depending solely on the neighborhood.
South Jersey
South Jersey, New Jersey is also considered a suburb of Philadelphia, and is an easy commute. Its neighborhoods include some of the most coveted property and real estate in all of New Jersey, and home values here are expected to increase over time.
Take Cherry Hill Township, a town in South Jersey ranked as one of the best places to live in New Jersey. The current median home price in Cherry Hill is $335,700, which is quite a bit more affordable than other “top spots” in New Jersey.
New Jersey Cash Buyers
We are NJ Cash Buyers, and we specialize in facilitating quick home sales in unique selling situations. We cut out all the middlemen and their commissions and fees, too. We charge NOTHING for our services, and they are top-notch. We’re dedicated to revitalizing and improving NJ neighborhoods.
The best thing about our locally-based New Jersey company is that we pay homeowners fair, all cash offers. So if you find yourself in an unusual situation where you need to sell your house fast, simply fill out this short form for a free, no obligation cash offer.