Vast numbers of New Jersey residents fleeing the state as a result of rising job losses and one of the highest two tax bases in the country is projected to delay any come back in the housing market through the year. However, home sales are expected to rise as the states housing markets move towards stabilizing.
In Atlantic City newly built condos are selling for nearly half of their original asking prices as gamblers visit little during the economic downturn. Growing unemployment in the gaming industry, construction and retail sectors are making it tough on the once booming Oceanside community.
Home sales rose as a result of first time buyers’ tax credits, and are expected to improve in the first half of 2010 with the expansion of the federal stimulus program before settling down towards the summer. Home values are still falling, despite rising sales and are forecast to deflate 13.1% in 2010 in Atlantic City.
The boom that was transforming Trenton bolstered sales of lower priced homes before the market crashed. The pain of the fall out from the financial crisis in Trenton is suffered with rising business failures and job losses. Trenton is forecast to sustain 8.9% deflation by year’s end.
Just over the state border from New York, Newark is ailing in the worst housing crash since the Great Depression. Home sales rose temporarily as a result of the first time buyers’ tax credit only to soften. The pain of the fall out from the financial crisis can be seen on just about every face with more bad news expected in the coming year as housing prices deflate a forecast 11.7% on average. Foreclosures are nagging at the market and are projected to increase.
But where there’s the verge of collapse in Newark, there’s a joyful renaissance going on in Jersey City. The community won’t be returning to the boom days any time soon, but new projects finished before the collapse of the real estate market give Jersey City a modern appealing appearance. Still, property values are forecast to decline another 9.3% in 2010.
More affordable homes have drawn newcomers to Edison to make it one of the stronger markets in the state with rising home sales. However, lower prices don’t make it any easier for move-up buyers to make a move with downward pricing pressure. The expansion of the federal tax credit to move-up buyers could aid in the state’s recovery, but the downturn could take years to find a bottom. Edison is forecast to see average home prices deflate another 7.9% in 2010.
Ocean City is New Jersey’s premiere beach resort, where vacationers flock to the beach during summer vacation. Its two-and-a-half mile boardwalk offers views of the Atlantic Ocean that are equaled in few other east-coast communities. Yet, the housing bust has been tough on Ocean City, and is forecast to sustain another rough year with deflation averaging 10.3%.