From the Jersey Journal:
Throughout Downtown, a slowdown?
Experts fear slowdown in real estate market
By JARRETT RENSHAW
Rising federal interest rates combined with growing concern among the nation’s lenders over how much supply Jersey City’s Downtown can handle has some experts and local officials predicting a significant slowdown in the city’s bullish residential market.
The apparent shift in momentum comes at a time when Jersey City planning officials are bracing for upwards of 20,000 new units – from rentals to condos – in the Downtown region alone over the next decade, and it’s now unclear whether the city will hit that target as the market emerges from its borrower-friendly epoch.
The perception of a flooded market has already slowed down one major Downtown project, and one of its high-profile developers – mega mogul Donald Trump – recently told The Jersey Journal the second phase of his Trump Jersey City project “may or may not get built, depending on market conditions.”
The attorney for Metro Homes, James McCann, defended a postponement of a payment to the city saying that the lenders for the project have become jittery about the prospects of selling out the second of two towers.
“The banks are a little more skeptical of condo developments, because of the supply,” said Dave Barry, of Applied Development.
Should be interesting to see how this plays out for all those folks who bought into these new buildings in the pre-construction phase. Are there contingencies if the today’s price for a condo falls below the price they ‘locked in’ months ago?
This is exactly what Jersey City needs!! Condos for 450k at 850 Sq. Feet a pop is ridiculous even it is close to NYC. Not to mention that IF parking is available, they’ll make you pay out the nose for that space OR make you lease it for $200 or more at their “local” parking lot which is around the block and not even by your front door. This City is not ready for an en mass population due to new “luxurious condos”. The city government is corrupt with almost everyone asking for handouts, crime is at an all time high, car theft/robbery is the norm, the Hudson River stinks and the “luxurious condos” are tiny. This is not Manhattan or even a reasonable borough of Manhattan that the realtors try to sell you with their snake oil. One of the sad things about Downtown JC is that your average rental is about $2500 a month. You can live in Manhattan for that kind of cash! Let alone outside Manhattan in Brooklyn, Bronx, etc.
Jersey City is just not worth all the hype! Don’t believe me, check it out for yourself.
-Frustrated with Hudson County and greed
Cue Nelson Muntz: “Haa-haaaaaa.”
Anon at 10:17, clearly you have not been to Downtown Jersey city. I live there so maybe I am biased but I do not think so. First the quality of the housing stock is excellent, for what you pay in rent it is nicer than what you would get in Hoboken or Manhattan. Also rents have begun to spiral out of control so not many units have rented at the really high numbers and it is not known if they will, it is landlords speculating. I have seen 3 bdrms for $2600 which isn’t bad. Also while JC is not Manhattan it is still nicer than some areas of Manhattan LES, Harlem, etc. and nicer than LIC or most places in Brooklyn, forget the bronx and it is cheaper! Yes the government is corrupt, the schools suck, and crime is a problem(Though not really downtown so much) but it is convienent and less expensive than the alternatives in NYC. Also every luxury building has parking on site that I have been to and street parking in JC is not yet that bad because of resident permits and Downtown having more offices than residences.
Also that 450k is a little on the low side it is around 525k right now for 850sqft which is very high. 850 sqft rightfully if it is by the waterfront should sell at 400k. Basically the way I see it waterfront area should run about $500psf and in the historic areas it should be $400psf. While I would love to own here I cannot afford it so I rent. If you think this is bad go to LIC or Brooklyn where non-view, non-waterfront is selling for $600psf precon and the people think it is a good buy. In all honesty even 5-6 years ago when things were saner that $450k condo would still have been $275k, so $370K is just keeping up with inflation(5% a year) in an area where development is improving the inherent value of what is there. You sound frustrated because you are being priced out as an area that has been historically underdeveloped is now booming.
Anyway the writing is on the wall in JC, expect prices to go down some but the developers are lucky there. The rapid increase in value made the developers so much money on land they paid little for comparatively that they will come out alright. It is the developers late to the game and homeowners who paid too much will be hurting.
Why would you want to live in JC??? It is built on top of a toxic wasteland and one of the top crime infested neighborhoods in NJ. Downtown JC is not any better. The mall is the worst I’ve ever seen. The nightlife is non-existent.
Perhaps if you join a gang.
crips, blood , latin kings,
It will help.
JC wonderful place to live.
cultural.
Anon @ 2:45,
You seem to know Jersey City. What about the two condo projects approved near Journal Square – one of them I think is on the old Volkswagon dealership ? How much are they going for and how much do you think a condo is worth (psf) at that location ?
CNS
Journal Square is NOT a desireable area to live in!!!!! No matter what they tell you.
Right now, Downtown, Hamilton Park, Van Vorst Park are relatively decent areas that are shaping up. But crime, parking, local government, overpriced condos, taxes based on the new developments and lack of decent shopping (Newport mall is a joke) make Jersey City not worth it.
The developers are taking it all to the bank and the people who buy now are going to pay dearly for their mistake.
There is a very small night life around Grove Street, but it doesn’t compare to the variety and quality you’ll find in Hoboken. Parking is becomming worse as well, so make sure you find a “safe” block to park in around the Grove Street area where your car won’t get broken into or side swiped by a passing care. The parking situation is getting to be as bad as Hoboken. BTW, expect your property taxes for a 500k unit to be close to $10k a year or more. And with our lovely Sales tax increase sans Corzine…
Look outside of New Jersey. It’s just not worth it anymore. I know I am and I’m born and raised here.
Anonymous said
Also while JC is not Manhattan it is still nicer than some areas of Manhattan LES, Harlem, etc. and nicer than LIC or most places in Brooklyn
Perhaps you haven’t been around these areas in a very long time because they have all come up. The prices are worse then Hoboken, the crime rates are lower then you make them out to be in JC, and there is thriving retail in Harlem btw, chain stores that maybe 20 years ago wouldn’t have existed there but they do now. Know your facts before you post please.
You have GOT to be a realtor, LOL. Apologies about your huge mortgage payment on that condo unit you bought downtown for 550k and property taxes at $9500 a year with maintenance dues at $350 on top of it. Slave mortgage me. NOT!!!!
Boycott open houses! Especially in JC! hehehe
CNS,
Journal square is a little bit of a rough area. It is not totally ghetto as some people state but the area where the can factory is right around the Marion neighboorhood, there is a lot of heavy industry so it is not the prettiest. It is near the indian neighborhood around Newark ave. Given the planned redevelopment areound Journal Sq and the possibility of the Can factory getting its own PATH stop, the project should be intersting. Given that that market does not really spiral, a fair price is right around $200 psf. That is considering the risk you are taking moving into an area that is not quite there yet.
When it comes to Journal Square, I think it really depends on which block or blocks you’re talking about. Some parts of the journal square area are definitely iffy and may not be that safe returning home at night. While others are quieter and safer. You have to visit the area in question to see for yourself.
I live in the Heights and this neighborhood is definitely like that.