FDIC State Economic Profiles have been released for Winter 2005:
New Jersey State Profile – Winter 2005
New Jersey’s economic growth moderated during 2005
New Jersey’s job growth rate has eased after reaching a four-year high in first quarter 2005. After declining steadily for the past two years, the state’s unemployment rate slightly increased in the third quarter 2005 primarily because of an increase in the labor force.
New Jersey’s easing job growth during the first three quarters of 2005 primarily reflected less growth in the government (state and local) and construction sectors and increased manufacturing job losses. Two-thirds of the state’s net new jobs added were in retail trade, health services, and restaurants. The rate of job losses in the state’s telecommunication industry declined as consolidation slowed.
Camden led the state’s areas in job growth, while Newark-Union continued to lose jobs.
New Jersey’s housing activity may be transitioning to a moderate pace this winter.
At 13.7 percent, New Jersey home appreciation remained strong in third quarter 2005 (13th highest in the nation), although the rate has eased after reaching a cyclical peak of 18.5 percent one year earlier. Appreciation rates slowed across all of the state’s housing markets.
Rising interest rates and increasing home prices have contributed to declining home affordability in New Jersey. Housing affordability has eroded at a greater rate in the state than the nation over the past several years). Excluding the Vineland and Camden metro areas, the majority of the state’s housing markets were less affordable than the national average.
Reduced affordability and rising interest rates may be contributing to a moderation in housing demand this winter. The rate of existing single-family home sales in New Jersey has slowed since second quarter 2004. This trend has been most apparent in northern New Jersey where home sales declined in the third quarter 2005 compared with the similar 2004 period, while the rate of sales growth in central and southern New Jersey has trended down since mid-2004.
Nothing really new here, and certainly nothing earthshaking. In fact, much of what we’ve been discussing here for months.
Caveat Emptor,
Grim
What really kills me is that the media is now talking about a bubble but you hear very little about the outrageous f***ing property taxes in NJ.
Combine the price gouging for someone’s POS along with the absurd property taxes and you’re pretty much setting yourself up for a heart attack. Middle class? HAHAAAHAA!!!
It’s beyond ridiculous, it’s sad.
Look at this article. Another reason the US standard of living and wages are under assault. Beware of paying these home prices. When homeprices fall, the debt does not drop with it.
http://www.detnews.com/2005/autosinsider/0502/10/C01-85880.htm