New Jersey still offers real estate buyers a value while a recent report on New York City real estate indicates that buyer demand for properties is in the middle of a major shift.
New York City has been one of the hottest real estate markets in the country.
The median sales price for a property in New York City in 2013 was $1,067,000.
In September 2017 that number hit $1.52 million period but since that time the average median sale price for property in New York City has fallen to $1.3 million.
In addition to that number of sales have fallen dramatically from 5 years ago to less than half of what they were in October 2013.
According to a story from CNBC, offers for properties have begun to come in at 20 to 25% below asking prices. This is clearly an anomaly.
What appears to be one of the reasons for the drop in buyer demand is a clear surge in the number of homes that are available for sale in the city. In addition to that the higher rent apartments are also coming down in price. The CNBC report indicates that days on market “are soaring.”
How does this affect New Jersey? Well, New Jersey has never been in, the overbought condition that New York City has been in. New Jersey’s properties have always tracked with New York values, making their values less exposed to the incredible emotional fluctuations that seem to affect New York City real estate.
According to the National Association of Realtors, Hudson County has also seen a decline in the number of new listings and in the number of closed sales, new listings down by 16% and close sales down by 16.3%. Yet the number of days on market has fallen dramatically by nearly 24% year-over-year. In addition to that, median sales price has increased 7.5% year-over-year. And it appears that the New Jersey inventory in Hudson County has fallen an equally dramatic 25% from 509 to 381. The month supply of inventory in Hudson County for August comes in at 4.4 months, which is a 27% decrease from 2017.
The bargain prices as presented for single family homes in Hudson County of $385,000 for median sales price represents a huge difference from the $1 million plus price tag for Manhattan properties.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.