Real Estate Prices Point to Strong 2018
What’s good for Brooklyn is good for Jersey, or at least that is how market trends have tracked over the last decade. We should see if New Jersey continues to track in this direction, since the numbers for December, 2017 are expected to post on January 23-4.
The outlying boroughs of New York City are benefiting from Manhattan’s hyper-priced properties. This is clearly having an effect upon the New Jersey counties of Bergan, Union and Passaic. Could this be a preview to what New Jersey might expect for its surrounding urban regions? Some of these prices for “the nation’s 4th largest city, Brooklyn,” might frame some context for what the Garden State might expect.
Brooklyn’s real estate market in the fourth quarter of 2017 showed that the median sales price climbed to $770,000, which is up 2.7% from the prior year. New Jersey properties also posted similar rise, with an average price of $375,598, up 1.9% from the prior year.
The record for Brooklyn was set in the second quarter of 2017 of a median sales price of $795,000.
Brooklyn and New Jersey are experiencing similar housing shortages: the report for Brooklyn showed just 1,711 homes were for sale in the fourth quarter of 2017, which is down 23% from 2016. Single family homes in New Jersey also dipped by double digits from 41,736 in 2016 to just 33,887, a drop of 18.8% from 2016.
Both New Jersey and Brooklyn continue to show a critical level of listings stretching for over a 3-4 year period, with buyers snatching up anything they can get their hands on.
In the recent past, almost everything was under $500,000 in Brooklyn neighborhoods which were farther from Manhattan. Signs of change can be seen in the numbers: more than half of the Brooklyn apartments listed in 2012 were below that threshold. Now, in the fourth quarter of 2017, just 22% of listings were below $500,000. This continues to produce a ripple effect for New Jersey’s commuter counties: Union, Bergen and Passaic.