From the APP:
Looking to buy or sell a home? Nearly 10 years after the market in Monmouth and Ocean counties hit its peak, residential real estate has shown encouraging signs of life, but nothing like the wild climbs that once led to the housing bubble of the last decade.
Housing prices in New Jersey have increased since 2011, a few years after the housing bubble burst, but momentum is expected to slow in the next year, said Patrick O’Keefe, director of economic research at CohnReznick.
Currently, in New Jersey “prices are still about 20 percent below where they were” since their peak in 2006, O’Keefe said.
Nationally, prices are only 2.4 percent lower than what they were in 2006, according to O’Keefe.
One reason prices have been slow to recover here, is that “prices in New Jersey, relatively speaking, had run up much faster and further than what was true nationally during the housing boom,” O’Keefe said.
The median sales price of existing single-family homes for the Edison area, which includes Monmouth and Ocean County, in the second quarter of 2015 is $323,000, according to the National Association of Realtors.
That is up 4.5 percent compared with the second quarter of 2014.
Despite the rising costs, July has seen the most sales of existing homes since the housing recession began, O’Keefe said. However, the prices of homes is expected to stagnate, he said.
“(Analysts) expect prices will rise in 2016, but not rise faster than the rate of inflation,” he said. “In other words, there won’t be real gain in prices.”
Contributing factors to the plateau of home prices include the expectation that the government will raise interest rates, and that would-be sellers are hesitant to put their homes on the market, waiting for prices to climb further, O’Keefe said.
“One of the things that has bedeviled housing recovery nationally, but even more pronounced in New Jersey, is potential home sellers have been unwilling to list their homes because of the degree to which they would have to take a discounted price,” O’Keefe said.