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New Jersey
An over supply of real estate listings, the credit crunch and the highest property taxes in the nation have thrown New Jersey real estate markets into the worst housing slump in decades.
The squeeze has been on New Jersey housing for almost two years as the state loses population to warmer climates. The real estate bubble in New Jersey was less inflated than other parts of the country, but the Garden State isn’t out of the woods in falling real estate prices. Foreclosures are plentiful and increasing in just about all of New Jersey’s markets.
In Atlantic City, which is a hub of activity for gambling the changing economy is making inroads into the real estate market. Home sales are off in the state’s top tourist city, and are forecast to slow further in 2008 by Housing Predictor. Atlantic City will see further price drops averaging 6.3% for the year.
In Newark, just outside of New York City there is an over-supply of homes for sale. As New Jersey’s largest city, Newark was one of the state’s hot beds for real estate during the boom. A mass exodus of residents and foreclosures are hurting Newark, which will have a tough year in 2008 forecast to deflate 10.9% on average.
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| City |
Forecast |
| Newark |
− 10.9% |
| Trenton |
− 2.8% |
| Atlantic City |
− 6.3% |
| Edison |
− 5.8% |
| Ocean City |
− 6.3% |
| Jersey City |
− 4.6% |
In Edison an over supply of homes is forcing sellers to reduce their asking prices substantially if they want to sell their homes. Home buyers are taking longer to make a decision. The present slow market place should drag right into the summer. Prices are forecast to deflate 5.8% on average in 2008.
In Jersey City the historic neighborhoods downtown have gone through a renaissance driven by a booming housing market. The waterfront has grown with new high-rises and other developments. New developments are still in the planning stages for the area, including Trump Plaza Towers. But the housing market has slowed and will depreciate slowly over the year at 4.6% on average.
In Trenton, where home prices are much lower than in many other New Jersey markets, prices have come down so much sales activity is beginning to increase, despite mortgages that are harder to get. Average home prices in Trenton are projected to decrease another 2.8% in 2008.
The Ocean City market is composed of both vacation homes and regular year round residents. The community saw a booming economy in the real estate boom turn chilly once the market slowed. Fewer new buyers are shopping for real estate in Ocean City, which is on the way to another slow year of home sales.
Ocean City’s growing days seem to be over, at least for now. Housing Predictor forecasts the community’s average home prices will deflate an average of 6.3% in 2008.
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