Below is a general update about the rising mortgage rates as it pertains to the Jersey City marketplace, especially for the owner-occupant units downtown. So far, we are not seeing any downward pressure on pricing just yet. The overall buyer behavior has changed slightly over the past few weeks. The main notable changes are that some buyers want to view the home a second time and a longer time in decision making before offering. In my experience that is a “normal” behavior of a “normal” market. The idea that a buyer comes in and makes a full-price offer immediately following a showing is not a “normal” market. The time frame for selling is not months, but rather extended a couple of weeks at best.
Contributing Factors to Current Selling Timeframe
- Downtown Jersey City is a very transient market. The average buyer lives here for ten years and moves 3 times within the general marketplace. That means they are not buying their “forever home”.
- The average buyer believes they will earn more in the next five years, as they are typically in a period of their professional life where income is increasing regularly.
- The average buyer believes they will be able to refinance in 24 months or less.
- As of right now, the inventory is showing an upward trend, but statically we are still below this time last year. Read more about the Hudson County, New Jersey housing market trends.
- The rental market is the best we have ever seen with the highest rents and the lowest inventory.
- To generalize, downtown Jersey City/ Hoboken has seen most of its value growth from 2010 – 2017. Since 2017 there has not been a huge change in value to date, with the exception of some large single-door entrance properties with outdoor space.
New Jersey Suburban Markets
The suburban market is showing the most change as noted by the media, especially in national statistics. I can only speak to the New Jersey suburban market based on research and dialogues with other professionals in our area. The suburban New Jersey markets, pre-COVID, were at 2008 pricing at best and never really made advancements from that time. When COVID hit, they got their well-deserved sugar rush on values. From there, values continued to rise, and some local professionals tend to think it may have gone a bit too far. Most professionals in that marketplace think the “B” suburb areas have become overinflated and will potentially see some changes occur as inventory turns over. From my understanding of the market, this is where the mainstream media is focused.
Reach out to Patrick Southern for more information on today's housing market in Jersey City. The Properties by Southern team is keeping a close eye on all the market trends and can update you on market shifts or new opportunities.