Trends in the real estate market change constantly, and investors looking to sell their property are always on the lookout. For investors looking to get into the New Jersey real estate, information about the NJ housing market forecast for 2022 is a must-have.
Luckily, this article is here to help with all the pertinent information about the housing market in New Jersey. In the last year, New Jersey investors were faced with several challenges, as there wasn’t too much property available to buy, and the prices soared. The property’s main advantage in New Jersey was the record-low mortgage rates.
Since New Jersey was such a popular place to invest in 2021, we are here to determine whether that is the case with 2022, so make sure to continue reading.
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New Jersey Real Estate Market Forecast
In the New Jersey real estate market, the average housing prices are $454,982, according to Zillow, and they have increased 15.9% in the past year. The home prices are adjusted each couple of months to truly reflect the home price growth, including only the middle-priced housing inventory.
Thanks to multiple offers on housing units, the prices have gone up 7.2% compared to last year, and based on the current trends, the costs will only continue to grow.
Latest Trends in New Jersey Property Prices
Now, let’s check out the spring season prices for a home purchase in New Jersey, according to New Jersey Realtors. This platform provides information about NJ’s many markets, home value increases, inventory changes, and buyer or seller market situations.
Below, you will find the essential information about the current trends in New Jersey’s home demand and supply, using the year-over-year data for April 2021 and 2022.
NJ Housing Market Supply
- Single Family New Listings dropped 15.6% down to 9,521.
- Townhouse New Listings decreased 15% to 3,183.
- Months’ Supply for Single Family housing dropped 8.7% from 2.3 to 2.1 months.
- Months’ Supply for Townhouse also followed with a decrease of 20.7%, from 2.9 to 2.3 months.
NJ Housing Market Demand
- Single Family Closed Sales have decreased by 15.8% compared to last year’s same month.
- Townhouse Closed Sales have dropped 15.6% compared to April 2022.
- Single Family Median Sales Prices have increased 8.2% to $460,000.
- Townhouse Median Sales Prices have also increased from $315,000 to $349,490 in a 10.9% increase.
- Single Family Average Sales Prices have increased 10.9% from 2021, rising to $583,233.
- Townhouse Average Sales Prices have risen 11.4% to $443,971.
Market Forecasts for Selling a House in Jersey City
After Newark, Jersey City is the second-largest city in NJ by population, and the trends show that Jersey City is growing at outstanding rates. Jersey City grew 10% in the last decade, making it a rather popular place to live in. Being in such proximity to New York City, Jersey City lacks typical suburbs in the housing market – it only has to offer smaller, close-by cities.
We all saw the incredibly high prices last year and the bidding wars for the single-family detached homes; it can be difficult to predict what will happen in the NJ housing market forecast in 2022. The thing is, Jersey City is an attractive place to invest in real estate, and so many buyers are interested in buying property close to New York City.
Jersey City is located across the Hudson from Manhattan, and it has a lot to offer – for example, more affordable homes with a significantly lower median price. Jersey City is a suitable solution for many people if you cannot afford a property to purchase in NYC.
On Zillow, the typical price for a home in Jersey City is $598,653, and the home value has risen 7.3% in the past year. Being one of the largest cities in New Jersey, the demand for single-family homes is somewhat expected. It is also the largest city and the seat of Hudson County.
Housing Market Forecast for Cash Home Buyers in Hudson County
Now, let’s check out the most recent data on the entire Hudson County housing market. According to New Jersey Realtors, the median sale price in Hudson County is now $540,750, which is an 11.4% rise compared to last year, when the price was $485,000.
However, the drop in new listings is significant – there are 19.6% fewer homes available for purchase in Hudson County compared to the same month in the previous year. Home values have increased, continuing the streak of a seller’s market.
Main Points for Selling a House in the Hudson County:
- New listings have decreased by 19.6% a year through the year.
- Closed Sales have increased by 11.4% compared to the 2021 real estate market.
- Days on Market Until Sale has remained stagnant on 36 days until sale.
- The Median Sales Price has risen 11.5% to an astonishing $540,750.
- The Percentage of List Price Received has risen from 1.0% to 100.8%, meaning most homes sold for more than the asking price.
- Inventory of Homes for Sale has dropped significantly, falling from 316 to 230, which is 27.2%.
- Months Supply of Inventory has decreased by 27.8%, going from 3.6 to 2.6 months.
Jersey City Real Estate Property Market Overview
The housing market in Jersey City now comes with a top-dollar price, thanks to the soaring demand in the previous and current year, making it the hottest real estate market in NJ. The city has a population of 300,000 and over 100,000 properties.
Apartment complexes and high-rise buildings are the most common types of property and single-family homes. They are prevalent compared to duplexes, converted housing, small apartment buildings, and detached and attached homes.
Most of the city’s property is used for rentals, so investing in Jersey City, New Jersey, is a great idea for a positive cash flow. It is currently still a seller’s market, meaning that the demand is very high.
According to Realtor.com, the median listing price is $645,000, with $586 per square foot. The median sales price is $359,000, on the other hand.
Sale-to-list price is approximately the same, meaning that the home sales usually go through with the asking price. The average home is on the market for about 68 days before a sale, and it’s slightly down compared to last month and the previous year.
The Waterfront is still the most expensive place in Jersey City, with a median sale price of $947,000. However, Journal Square is the most affordable, with a median home value of $360,000.
Is the Real Estate Market Slowing Down in New Jersey?
Yes – the real estate trends in New Jersey show that the demand is slowly decreasing compared to 2021. As expected, the market is gradually becoming saturated, but it’s still a hot market.
Are Home Prices Dropping in NJ?
No, they are not – and the forecast shows that the soaring demand and seller’s market will cause the real estate prices to grow even more. With it, we can expect rising mortgage rates and increased rent prices.
Will House Prices Drop in 2022 NJ?
According to Zillow, the New Jersey properties’ price has only gone up in the past year, and they will continue to grow. The supply is still lower than the demand, and along with all the pertinent factors, it is highly improbable that the New Jersey market will see a decline in the remaining months of 2022.
Is It a Good Time to Invest in Real Estate in NJ?
In the competitive New Jersey real estate market, the best moment to buy a house is right now. Zillow has analyzed the best time to purchase a home in the NJ cities, and it’s always the summer, preferably the end of summer.
The supply is always better at the end of summer, meaning that the prices are expected to see a slight drop compared to spring. So, if you are buying properties in NJ, it’s time to find sellers or a realtor that will help you on your way!
Can You Sell a House Fast for Cash in NJ?
Yes, you can – houses sell relatively fast in New Hersey. On average, houses in New Jersey stay on the market for 68 days, but if you list it a little below the market price, you will sign the purchase contract in weeks!
If you have any issues selling your home, contact a realtor today for help!
Advantages of Investing in Homes in New Jersey
Being so close to New York City has its advantages, but living in New Jersey comes with a much lower cost of living. Below, we will discuss why you should consider buying properties in NJ’s largest cities.
Attractive Renter’s Market
New Jersey attracts plenty of renters with a few universities in the state. Even better, the students coming in from all across the country are renters that are somewhat not affected by the rent prices. So, New Jersey has a fairly steady rate of renters who are always looking for properties to rent, despite its cost.
Around two-thirds of all properties in New Jersey are rentals, and the most significant cities have seen an increase in rent compared to the last year. Slightly higher mortgage rates have accounted for higher rent costs, and it’s undoubtedly a good sign for buyers.
Traditional renting is what most buyers have in mind, but Airbnb rentals are a new venture that can increase your cash flow significantly. In New Jersey, cities are open to Airbnb rentals, while New York City is still generally against the idea.
In NYC, it’s common to be heavily fined for renting out a room, while NJ now builds apartment complexes with Airbnb in mind – so there are no zoning issues later on. Being so close to Manhattan, Jersey City has plenty of offers for Airbnb, and your new investment could be one of them. New York and Airbnb don’t work together so well today, and many people still risk and rent out a room just to make rent, which is much higher.
NYC’s Affordable Substitute
New York City may be the most fantastic city globally, but it’s not precisely welcome for buyers, only sellers. It’s the perfect place for those looking to get out of NYC while remaining close to the metropolitan area. Buyers who cannot afford to purchase something in NYC will look for the ‘next best thing,’ Jersey City.
Jersey City is now part of NYC’s metro area, and that alone has sent many buyers to make an investment in Jersey rather than NYC. It offers plenty of jobs in various branches while remaining perfectly close to the East Coast. The unemployment rate is relatively low, and in Jersey City, it’s the lowest compared to other cities in the Garden State.
The Proximity of Wall Street
Wall Street growth doesn’t only affect the average senior economist – it affects everything close by, including New Jersey. Expensive rent for offices in NYC has driven many businesses to New Jersey. This allows them to stay relatively close to the trade hub of NYC while saving on the insane rent costs.
Jersey City has millions of square feet dedicated to office space in Wall Street West. Many jobs are held in this block, mostly in securities, banking, and insurance. The city has invested plenty into redevelopment, making it more desirable for new people to relocate.
Rent is far cheaper for offices and apartments, while the median sales price grows steadily. The property appreciation rate is going through the roof, especially for the upscale parts of NJ. Older neighborhoods are becoming relevant, too, as they are being renovated into luxury and affordable housing.
Jersey City now enjoys more parks and favorable tax rates for new retailers, attracting them to open new businesses in the Garden State. However, what truly makes Jersey City stand out is the Shore, waterfront housing that enjoys a spectacular view of Manhattan.
New York City is among the cities that aren’t so landlord-friendly – it tends to be more protective of the tenants than the landlord. In New Jersey, the landlord is well within their rights to file for eviction when the tenant is a few days late on covering the costs of rent. In NYC, eviction is a lengthy process, and it can take months to file.
Moreover, in New York, the landlord can’t evict someone because the lease contract is up, and you cannot even collect late fees if that isn’t included in the contract, making you lose money. NYC landlords have to follow strict legal guidelines if they have tenants while renting out apartments in Jersey City is incredibly simple.
New Jersey protects the landlord and their assets, which is a critical factor to consider if you want to buy a property in a new area. If you decide to buy into a market that isn’t landlord-friendly, you could be faced with various difficulties along the way.
New Jersey now attracts young adults and families, as the Garden State has much better schools. Children are more likely to graduate high school and attend college in New Jersey than in New York, and it’s generally more affordable tuition-wise.
With everything going on in New Jersey, the home prices and population have been growing. Being close to New York City but away from the crowd has its advantages while having plenty to offer its residents.
The job market has plenty of jobs available and various amenities, and the reasonable housing prices are just a plus. Jersey City is the fastest-growing city in the Garden State, and it’s landlord-friendly, too – thanks to the fair share of renters in the city.
The forecast for 2022 is excellent – and the investors expect the home prices to continue to grow in the next decade. Thanks to the low-interest rates, whether you are a seller or a buyer, there must be something you can afford in New Jersey.
If you would like to learn more about selling your home in New Jersey, check out our other resources below:
- How can I sell my house fast in NJ?
- How to Sell an Older Home in New Jersey: Tips from the Pros
- Can you sell a house with mold in NJ?