Information About the New Jersey Real Estate Market
The recent economic changes caused by the subprime lending meltdown are changing real estate markets nationwide. In New Jersey, the average price of a home has changed dramatically in the last year, going from about $361,000 to $346,000 (according to Zillow.com). This is very significant because the market prior to 2006 was very positive, with the average price of a home increasing each year.
The number of foreclosures in New Jersey is drastically shaping the market. Of about 75,000 homes for sale in September 2008, over 27,000 (over one third!) are foreclosures. Foreclosures are generally selling for less than the average; while the average New Jersey real estate property sells for around $350,000, and a new home averages at $450,000, the average foreclosure sells for just over $275,000. In other words, it is truly a buyerâs market at the current time, with no signs that this will change in the next few months. Individuals who are looking to purchase a home for the first time would be well advised to consider purchasing now, while prices are lower than previously anticipated. Further, sellers who can wait to sell their home should consider holding on to their property for a few years. Experts anticipate that the market will rebound, though nobody knows for sure when signs of the market again increasing the value of homes will occur. For now, it is safe to say that it is unlikely that homes will gain much value in the immediate future.