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REALTORS® have seen a lot of uncertainty from consumers considering buying or selling a home in today's market. It can be hard to make a decision with everyone offering you a different opinion. For most people, buying or selling a home is one of the most important financial decisions they will make it their lifetime. Knowing all the facts about local real estate trends is crucial to making a sound financial decision.
The Garden State continues to offer real estate opportunities that are worth exploring.
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While other states have seen home prices decrease dramatically, homes in New Jersey have generally maintained their value. The charts below compare the first and second quarter median sales price of existing single-family homes in 2007 and 2008 within New Jersey metropolitan statistical areas (MSA) to other areas throughout the nation.
|
MSA |
2nd Quarter
2007 |
2nd Quarter
2008 |
Percent
Change (%) |
|
Akron, OH |
$125,300 |
$106,500 |
-15.0 |
|
Allentown-Bethlehem-Easton, PA-NJ |
$270,200 |
$251,500 |
-6.9 |
|
Atlantic City,
NJ |
$259,900 |
$255,900 |
-1.5 |
|
Camden,
NJ-Philadelphia, PA |
$243,000 |
$235,700 |
-3.0 |
|
Cape Coral-Fort
Meyers, FL |
$266,200 |
$178.100 |
-33.1 |
|
Edison, NJ-NY |
$385,100 |
$373,000 |
-3.1 |
|
Grand Rapids, MI |
$132,300 |
$112,500 |
-15.0 |
|
Las
Vegas-Paradise, NV |
$307,900 |
$235,300 |
-23.6 |
|
Los Angeles-Long
Beach-Santa Ana, CA |
$593,000 |
$417,800 |
-29.5 |
|
Newark-Union,
NJ-NY-PA |
$451,100 |
$420,000 |
-6.9 |
|
Northern
NJ-NY-Long Island |
$478,800 |
$453,400 |
-5.3 |
|
Phoenix-Mesa-Scottsdale, AZ |
$264,800 |
$205,100 |
-22.5 |
|
Sacramento-Arden-Areade-Roseville, CA |
$356,500 |
$229,500 |
-35.6 |
|
Trenton-Ewing,
NJ |
$313,900 |
$318,900 |
1.6 |
|
Wayne,
NJ-NY-White Plains |
$558,700 |
$498,500 |
-10.8 |
|
MSA |
1st
Quarter 2007 |
1st
Quarter 2008 |
Percent
Change (%) |
|
Allentown-Bethlehem-Easton, PA-NJ |
$247,300 |
$237,000 |
-4.2 |
|
Atlanta-Sandy Springs- Marietta, GA |
$170,400 |
$154,000 |
-9.6 |
|
Atlantic
City, NJ |
$264,600 |
$277,400 |
+4.8 |
|
Camden,
NJ-Philadelphia, PA |
$222,500 |
$220,900 |
-0.7 |
|
Edison,
NJ-NY |
$363,500 |
$361,200 |
-0.6 |
|
Grand
Rapids, MI |
$129,700 |
$102,800 |
-20.7 |
|
Las
Vegas-Paradise, NV |
$310,100 |
$247,600 |
-20.2 |
|
Miami-Ft.
Lauderdale-Miami Beach, FL |
$385,300 |
$318,900 |
-17.2 |
|
Newark,
NJ-NY-PA |
$423,700 |
$409,300 |
-3.4 |
|
Northern
NJ-NY-Long Island |
$463,700 |
$445,400 |
-3.9 |
|
Phoenix-Mesa-Scottsdale, AZ |
$262,500 |
$222,200 |
-15.4 |
|
San
Diego-Carlsbad- San Marcos, CA |
$595,200 |
$459,000 |
-22.9 |
|
Trenton-Ewing, NJ |
$283,800 |
$288,200 |
+1.6 |
|
Washington-Arlington-Alexandria, DC-VA-MD-WV |
$427,800 |
$371,800 |
-13.1 |
|
Wayne,
NJ-NY-White Plains |
$521,400 |
$491,900 |
-5.7 |
Source: National Association of REALTORS®
Buying a home now is good move.
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A recent
Reuters/Zogby poll concluded that a majority of Americans
think now is a good time to buy a home. A survey of 1,049
likely voters found that 53.8 percent of participants
believe now is a good buying opportunity.
Source: The Reuters/Zogby
Index
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According to
the Federal Reserve Board's Survey of Consumer Finances, the
average homeowner has a net worth of $184,400 while the
average renter has a net worth of $4,000.
Source: Federal
Reserve Board's Survey of Consumer Finances
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Interest
rates are very low compared to years past, making it more
affordable to become a homeowner. If you wait to buy a home
thinking prices will fall you run the risk of interest rates
climbing higher. In the end, waiting to buy might not pay
off.
To check out
current mortgage rates or to calculate the cost of different
financing options, go to the NJ.com Mortgage Center at
www.nj.com/mortgagecenter.
Despite all the conflicting reports, real estate continues to be a smart long-term investment.
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According to the
2007 New Jersey Home Buyer and Seller Profile, the typical seller has lived in their home 7 years. A June 2008 report issued by the NATIONAL ASSOCIATION OF REALTORS® (NAR) found that within those seven years the typical New Jersey homeowner will have accumulated nearly $156,300 in housing equity.
Source: National Association of REALTORS®, June 2008
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Home prices in New Jersey have experienced strong growth over
the last five years.
|
Year |
Median Sales Price of
Existing Single-Family
Homes in NJ |
|
2003 |
$291,400 |
|
2004 |
$312,900 |
|
2005 |
$344,300 |
|
2006 |
$362,900 |
|
2007 |
$363,500 |
Source: National Association of REALTORS®
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The seven year appreciation rate for New Jersey homeowners is
80.4 percent, more than double the national rate of 37.8 percent.
Source: National Association
of REALTORS®, June 2008
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Look at homeowners' equity accumulation over the years in the
following metropolitan regions:
Atlantic City,
Edison region,
Newark/Union region and
Trenton/Ewing region.
Every market, every situation and every transaction is unique.
Truly, all real estate is local.
- Below is a chart that shows the market trends different areas throughout New Jersey experienced during the
second quarter of 2008
.
(Click for larger image.)
Click for first quarter, 2008 statistics.
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Over time, local housing markets may experience different
trends. The chart below compares the median sales price of
existing single-family homes for selected New Jersey
metropolitan areas in 1997 and 2007.
Click here to view the change in sales price over the last
ten years.
|
Metro Area |
1997 |
2007 |
|
All US |
$129,000 |
$217,900 |
|
Atlantic City, NJ |
$105,000 |
$269,700 |
|
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD |
$123,500 |
$234,900 |
|
Trenton-Ewing, NJ |
$137,700 |
$307,100 |
|
Edison, NJ |
$155,500 |
$380,300 |
|
Newark-Union, NJ-PA |
$198,400 |
$443,700 |
|
New York-Northern New Jersey-Long Island, NY-NJ-PA |
$173,600 |
$469,700 |
Source: National Association of REALTORS®
The real estate industry is a major economic engine fueling the
overall economic health of New Jersey.
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The real estate industry accounted for more than $97.2 million
or 21.5 percent of the gross state product in 2006.
Source: Bureau of Economic Analysis; National Association of
REALTORS®, April 2008
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As of 2006, nearly 70 percent of New Jersey residents enjoy the
satisfaction of owning their own home. According to the U.S.
Census Bureau, the rate of homeownership in New Jersey has gone
up 5.6 percent since 1984; whereas the United States the rate
has only gone up 4.3 percent in that same time period.
Source: US Census Bureau Housing Vacancies and Homeownership
Annual Statistics Report
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