Spurred by the first time buyers‘ federal tax credit and a smaller inventory of homes, New Jersey housing markets are beginning on their long road to recovery. Foreclosures have begun to level-off demonstrating that the state once considered a haven for defaults is beginning to move in the direction of an improving market.
Perhaps that's because the Garden State has a lot to offer, despite the highest property taxes in the U.S. However, property tax rebates are being restored to more than 500,000 homeowners. The latest changes, made possible by a $400 million windfall from tax amnesty, will provide rebates for homeowners who were not expecting rebates.
As one of the east-coast's main casino centers slammed by the economic downturn, Atlantic City has been battling like few other places in the state. Growing unemployment in gambling and construction is hurting. Few new condos are selling these days as potential new buyers, leery of the economic fall-out from the financial crisis wait out the recession. Home values have been falling as a result and because of increasing foreclosures. Atlantic City is forecast to see average housing values deflate 16.5% in 2009.
However, in Trenton the first time buyers $8,000 tax credit is bolstering home sales in the market, which has seen more activity than most other areas of the state. In Trenton housing prices are much lower than other places in Jersey, and as a result values won‘t fall as much by year‘s end. Trenton is forecast to sustain average housing deflation of 12.3% for the year.
 |
| City |
Forecast |
| Newark |
− 15.8% |
| Trenton |
− 12.3% |
| Atlantic City |
− 16.5% |
| Edison |
− 8.8% |
| Ocean City |
− 13.9% |
| Jersey City |
− 14.6% |
Just over the border from New York in Newark the market is ailing with fewer home sales, despite a spike in first time buyers. The downtown on the north side resembles a struggling economy with old crumbling industrial buildings, fenced-in parking lots and public housing. The recessionary economy is hurting Newark, which is forecast to deflate 15.8% in 2009. The epidemic of foreclosures is hurting this once bustling community.
In Jersey City it's quite a different seen as old historic neighborhoods downtown have gone through a renaissance. However, some new developments have been stopped in their tracts, unable to obtain financing to complete the projects amid the economic downturn. Jersey City won‘t be returning to another boom for years faced with the state of the economy.
Housing values are deflating. But the inventory of homes listed for sale on the market is dropping, a first sign that improving conditions are ahead. Jersey City is forecast to absorb average housing deflation forecast at 14.6% in 2009.
Edison may well be the strongest market in the state with prices that are more affordable than many other areas of the state. The over supply of housing is dropping as owners take their homes off the market. Deflation is forecast to hit 8.8% on average home values in 2009.
As a resort destination, Ocean City attracts plenty of tourists during summer months for its miles of sandy beaches. A walk along its 2.5-mile boardwalk shows the state of the housing market in Ocean City with dozens and dozens of for sale signs. The real estate market is made up of owner occupied homes and vacation homes. Sales have slowed like almost every where in the country, and prices are deflating. Ocean City will see another slow year of sales in 2009 on the way to forecast 13.9% deflation.
