Home prices in New Jersey have risen steadily over the last couple of years, following a broader national trend. But there's a chance we could see slower growth in the months ahead. New forecasts from the housing research team at Zillow suggest that home price growth could slow down in most cities and towns over the coming months.
But first, a look at current prices. According to New Jersey REALTORS, the median sale price for single-family homes sold across the state rose to $330,000 during the summer of 2017. The median for condos and townhouses rose to $260,000.
Zillow's forecast for the New Jersey real estate market suggests smaller gains over the next year or so. By their estimation, home prices in the state rose by around 5% over the last year (from Sept. 2016 to Sept. 2017). Looking forward, they expect the state's median home value to rise by a more modest 1.5% over the next year. This forecast was issued in September 2017 and extends into the same month of 2018.
That's the statewide outlook. When you zoom in to the individual towns, cities and metro areas, New Jersey real estate market predictions can vary quite a bit. That's because home prices and other real estate trends are driven by local economics, and these conditions vary by region.
For example, the latest forecast for the Jersey City, NJ housing market is much stronger than the broader statewide outlook. Analysts have predicted that home prices in Jersey City would rise by around 9% over the next 12 months (through September 2018)
This underscores the importance of doing localized research before buying a house or condo in New Jersey. There is a lot of diversity and variance among local real estate markets in the state. So you'll want to spend some time researching trends within the specific area where you want to buy.
Shifting to a Seller's Market?
The latest monthly snapshot from New Jersey REALTORS offered a succinct but insightful overview of current trends in the New Jersey real estate market. Their July 2017 report stated:
We are about two years into a national trend of dropping housing supply and increasing median sales prices. There are some regional variations to the story, but the shift to a predominantly seller's market is mostly complete. Multiple-offer situations over asking price are commonplace in many communities, and good homes are routinely off the market after a single day.
From this assessment, we can also shape some forecasts for the New Jersey real estate market extending into 2018. Home buyers can probably expect prices to continue rising, due to strong demand and (in some areas) limited supply.
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