From US News:
New Jersey Housing Market Forecast
Buyer demand in New Jersey remains strong, says LaRue. But higher borrowing rates have had an impact on buyer demand.
“Two years ago, people were paying over $100,000 over asking,” says LaRue, referring to a typical home in her market. “Now, you’re maybe getting a little bit over.”
That said, homes that are coming on the market that are more updated and located in nicer neighborhoods are seeing more offers and being sold for top dollar, LaRue says. Homes that aren’t as updated and on busier streets aren’t getting as many offers – but they’re getting offers nonetheless.
In March 2023, the median home price in New Jersey was $660,000, according to Redfin data, marking a 2.2% decrease year over year. On a national level, the median home price in March 2023 was $401,000, down 2.4% from a year prior.
Not only are New Jersey’s home prices higher than the national average, but the state has the dubious distinction of having the highest property taxes in the nation. In 2022, the average New Jersey property tax bill rose to $9,490. But those higher housing prices and taxes are commonly offset by a higher earnings potential.
“Not many people would choose to spend this much money on property taxes unless there were some sort of benefit to their income,” LaRue says.
LaRue says that when buyer demand was at its peak, bidding wars would commonly drive New Jersey home prices upward. These days, she’s still seeing bidding wars, particularly for homes that are the most desirable. These includes homes with expansive backyards and those that allow for multigenerational living. But bidding wars have slowed down quite a bit, especially for average properties.
Even New Jersey beach homes – a usually hot commodity – are seeing sellers who are open to negotiation, says LaRue. “Today’s mortgage rates are keeping buyers a little more conservative in their offers,” she says.
Meanwhile, in March 2023, the median rent price in New Jersey was $3,156, an increase of 7.5% year over year. On a national level, the median rent price in March 2023 was $1,996, up 4.7% year over year.
First..yes. Happy Mothers Day to the women of the blog.
Juice and 3b thank you. I noticed they stuck townhomes in every awkward space they could in Teaneck and Hackensack. By New Bridge Rd and Fairleigh Dickinson, they put lofts with shops….with like 16 parking spots. Not sure how that is good. Trying to get home was a nightmare through Teaneck.
BRT: Welcome. Looks like every available spot is being filled in with apartments, just an observation on my part, not a criticism. The one built where the old Bergen Co, DPW in Hackensack on Kinderkamack Rd is massive, don t know if it’s filled yet. An age restricted one on Kinderkamack Rd in Oradell is almost done, and another one on KKR in Oradell was rejected twice by the town, but the developer is appealing again. Another big one on KKR is quickly going up as well. New construction massive housing that only a few can afford, and more modest houses that people don’t want to sell and lose their low mortgage rates. That’s what it looks like, so I guess apartment building is the answer for many that want to live in Bergen Co. Still a lot of old timers in houses, and eventually they will come on the market.
Happy mothers day to all on here!
Happy mothers day!
Summer has begun down the shore opened and cleaned my pool over the last week and now the water is 72 F and the hot tub is now 104 F too, got activities out of the way and just going to lounge like a lizard this afternoon.
Happy Mothers Day.
Interesting OPs and comments on the last two threads…IDK, gaming it out the only real resolution I see to the housing logjam is that the upper part of the housing market has to roll over to get any sort of normalcy again throughout….not sure how we get there, if it is through 10% unemployment as someone suggested, a stock market meltdown, some combination, or something else.
There will always be trophy towns and trophy homes within all towns that sell for a premium but I’m still amazed the baseline home a young new buyer is looking at for the price offered (and even then not succeeding, 30/40/OR’s client)….on the other hand, attitudes change with new generations and some of them are doing quite well…there certainly seems to be a ‘curve’ I’m deriving from compensation discussions here and elsewhere whereby recent graduates with useful degrees are doing quite well with very good acceleration of comp while there almost seems to be a lid or actual decompression of older employees’ compensation…so maybe it all evens out…
One comment encapsulates the situation succinctly, from Mike…
“I still have a smaller house, but to ‘upgrade’ to a 4 BR / 2.5 bath will cost me…instead I have a mortgage under $1300 and taxes under $10k…”
That last line, the $1300 mortgage says it all….know how Lib posts his 15% four year CD from the early 1980s when we discuss rates as an example of hitting the outlier at the best possible moment? Keep some documentation, you’ll be posting your mortgage doc years from now…that mortgage setup? Pure gold. Until/unless you must leave, you’d be crazy to…where else in the *country* can you even get a 1BR apartment for that amount, in an economically active area, let alone a *family home* in one of the costliest areas?
The unexpected effects of ZIRP continue careen the economy having real and adverse effects on many. Why these policymakers can’t have some humility – you can’t engineer outcomes without consequences – and just let the economy and people function is beyond me…
Lowes is having a nice sale on appliances. We just got an LG dishwasher for $250 off and we got another 10% off with a store coupon if we used our Lowes credit card. And we are getting 12 months 0% financing.
Libturd would approve of this deal.
Leftwing,
I think there 2 gigantic unknown known and 1 known known.
1 Known known which is Baby boomers are dying. Within my closest 10 neighbors’ houses around me – 60% are over 75 y/o. Yesterday morning there was an ambulance across the next street.
2 Unknown known. First is the Debt Default? – I think barring the successful use of 14th Amendment is happening. The loud mouth sizeable MAGA minority are like 9/11 hijackers. The last unknown known is the 2024 election results vs who gets to be POTUS and how it happens.
All 3 of the above are leaning toward the federal reserve loosing its ability to do financial repression again with the short term interest rates without causing massive rapid inflation that spins out of control.
Things can look very different in 5/14/25. The cause for trying to lower rates might be 1)Trump 2.0 badgering to get rates lower. 2)Post debt ceiling economic shock that shot up interest rate curve into 7-12% 3)National economic disynchronisation as economic strike occurs – Think GOP steals 2024 POTUS election and Blue states where the money is go on an economic strike… All of the above plus space aliens running around.
Why these policymakers can’t have some humility – you can’t engineer outcomes without consequences – and just let the economy and people function is beyond me…
It’s because they are NOT trying to do the most good for the general public.
Any shot in hell I get hat tip?
https://nypost.com/2023/05/14/new-jersey-gov-phil-murphy-attempts-to-woo-new-yorkers-in-retaliation-for-congestion-tax/
I was screaming “free money” all last decade on this blog when it was not en vogue. I was just really early to the game. It hindsight; it looks easy. At the time…not so much. i looked like an idiot as I do with DNA or my call 2 years ago that remote work would not last. Just early to the game.
“Keep some documentation, you’ll be posting your mortgage doc years from now…that mortgage setup? Pure gold. Until/unless you must leave, you’d be crazy to…where else in the *country* can you even get a 1BR apartment for that amount, in an economically active area, let alone a *family home* in one of the costliest areas?”
500,000 tickets sold out at an average of $500. That’s 7 concerts at the Meadowlands between Beyoncé, Ed Sheeran and Taylor Swift. Gary get the calculator out and multiply it by a dozen cities.
Soft landing
VSG,
As avid concert goer, I can tell you that scalpers dominate the market. It is all about the resale. You do raise interesting point, watch seatgeek, TM, tickpick etc to see where prices end up. That is a decent indicator of overall economy. You won’t see big swings until final days before show when trying to unload at highest price or recouping some of price, if falling. I would also gauge by nosebleeds, not the 2K floor seats. Rich people don’t care about a few hundred dollars.
Bystander,
And poor people aren’t preparing for retirement, cause they know they aren’t going to have one.
So their attitude is enjoy what little break in misery you can afford. It’s why they would spend their savings on a concert. Might as well if you are bankrupt anyway.
My fren name-a Omba Drayba see a show noW an a gin.
HMB,
“Libturd would approve of this deal.”
This is the way.
Of course, I hope you ordered it online through the retailmenot portal which cuts another 3% off. You’d have to do the math to determine if paying with a 2% off credit card is more valuable to you than 0% interest overt the first 12 months as well. That’s how Captain Cheapo does it.
Gator and the D got gifted a pair of tickets to see Taylor Swift on Saturday night in Philly. For shits and giggles I looked up the prices on Stub hub the day before and the day of the concert. They really didn’t fluctuate much. $1,600 a seat for nosebleeds. $3,000 a seat for floor. Swift went for 3.5 hours. Gator got to the hotel at 2:15am. Show was pretty amazing I was told.
In a world where our politicians weren’t bought. Ticketmaster could make the tickets non-transferable, much like a hotel room. If you can’t go, you can return them for maybe a 20% restocking fee and they can be sold again at full price. You would have to show ID at the show to get in. There, problem with scalpers solved. Too bad our government has no interest in helping you or me. Just their rich contributors who make being a politician an extremely lucrative career.
My freN omba drayba saw MegHam TrainOr and she regurgitated pot tatO salaD and sliPped onStage. She landed oN heR fAt asS and was unInjured.
https://www.vcstar.com/story/news/local/2023/03/31/santa-paula-california-police-retired-oxnard-firefighter-joseph-garces-lawsuit/69825988007/
What a piece of shit
Chicago,
That congestion tax is to keep everyone in the underutilized MTA employed. It has nothing to do with congestion or pollution. Just another political ploy, this time, from the blue team. This will absolutely be the death knell to New York commercial real estate and all of the small mom and pop shops that cater to them. Won’t be long before Manhattan begins to look like many parts of London. Filled with rich Middle-Easterners. The village will go from Birkenstocks wearers to burkas. It’s only a matter of time now.
Well… that’s a bit out there, ain’t it?
My fren omba drayba wears a Spider-Man outfit when he robs bidnessmen.
He bugGers the skinny ones,
Have you walked through midtown lately? So few suits. So many wealthy foreigners. It’s kind of outrageous. Especially on the East Side.
Not that I a am xenophobe BTW. It’s just a very different crowd in the last 15 years, from what it was prior.
Dem foreigners never met a bar of soap Dey liked.
Phoenix,
I did consider that as well. Maybe no one gives a sh%t anymore. Then again, my captain cheapo special is Live Nation $25 “all in” ticket week. Not Taylor Swift but alot of good shows for cheap. Market is soft enough to resort to this.
https://www.livenation.com/promotion/concertweek
That said, homes that are coming on the market that are more updated and located in nicer neighborhoods are seeing more offers and being sold for top dollar…
Spare me, it’s like throwing a slab of meat to starving mutts. Anything that comes on the market is gone within hours. We’re beyond feeding squirrels and writing letters of worth.
If it’s got four walls and a roof, it’s sold. When I intend to sell, I’m slapping a nauseating price on the joint. If a potential buyer is interested, I’m willing to negotiate a little.
Seeing lots of empty storefronts in the mini malls today. A few blank billboards too. Did they name Powell man of the year yet?
3:40 how did you rid the pace of the smell of stale urine?
Bystander,
Live Nation being a monopoly is trying the old New Music Seminar. I did it back in the late 80’s. For @$200 you had access to all performance venues events for the week. They stop by 1991 because of finance issues.
For all you old X’rs https://www.newmusicseminar.com/history/
Picked up benfolds tickets for my wife and son at the beacon, paid $6 for early access code. Basically could pick any seat. Know it would not be as easy for large acts but worked great.
how did you rid the pace of the smell of stale urine?
It’s a selling feature. You have a few things to learn, kid.
TookNJ,
I used to manage the WMSC. I went to NMS for 5 straight years from 90-95. Saw so many amazing shows for free. I actually witnessed Beyonce’s first performance ever with Destiny’s Child, though it was a strange act for college radio. They kept saying she would be the number one artist in a few years. Of course, they say that about a lot of the acts. Though, she really was. She had to be 17 or 18 at the time.
The only problem with the NMS shows is that sometimes you spend more time waiting between the three to five bands performing, than you actually get to listen to music. For the money, it’s really cool to be able to see so much for so little. And the run from venue to venue on the same night can be a lot of fun. But at the end of the day, these are not real shows. More like previews, except occasionally for the last band performing. On the bright side, you will get to see tons of bands you never heard of that are amazingly talented. Just to get on the stage there requires a lot of skill to be chosen by the music execs.
Good read on Marketwatch, Jim Grants view on the Fed.
Talk about a bidding war from NJ.com
This N.J. house got 120 offers, sold for $150K over asking price
“There’s a two-family house in Clifton that got 120 offers when it hit the market last month. It’s scheduled to close this week for $150,000 more than the $449,000 asking price, according to the listing agent, Mahmoud Ijbara with Compass.”
118-hadley-avenue-clifton-nj
https://www.zillow.com/homedetails/118-Hadley-Ave-Clifton-NJ-07011/39719668_zpid/
I like Ben Folds. Caught him live once.
Juice: Throw some paint on it, paint the kitchen cabinets white, and upgrade the vanity with cheap Home Depot vanities, toilets, and do the bath replacement thing, and then flip it. Probably get 150k more!!
Fed officials expect rates to remain high, and possibly go higher, as they go into June, inflation still high, jobs strong.
That’s right. He gets it. Time to buy stocks like DNA as a new cycle is almost beginning or has already started.
https://www.cnbc.com/2023/05/15/david-tepper-ups-uber-stake-adds-small-bet-on-woods-innovation-fund.html
Yea, mofos!! Guess who is betting on biology too?!
Those that know…know.
https://www.forbes.com/sites/johncumbers/2023/05/13/why-former-google-ceo-eric-schmidt-is-betting-big-on-the-1t-us-bioeconomy/?sh=2474d4541a7e
That’s right, Eric. DNA. No f’ing around.
“Over 60% of goods in the world can be manufactured through biology—this not only represents an opportunity to make these processes more efficient and sustainable through biotechnology but millions of new blue-collar jobs across several industries. From the scientists and engineers that bring new products to life, to the people who operate the bioreactor, to those who create regulations that enable such innovations to reach their markets, and finally, to the founders of these new enterprises.”
“Biology is the next big thing. If I were young today, I would do biology.” — Eric Schmidt.
(Q&A with @johncumbers)
ps: @paulg also mentioned biology as being the next big thing next to AI and fusion energy.
I was on another RE related forum and someone said, loosely paraphrasing, if you don’t get into debt, someone will happily do it for you. There’s just too many people who will take on as much debt as the institutions will allow them to drown in. It’s this mania of 120 offers $150K over that’s tough to shake.
My wife doesn’t believe that the winner wasn’t a builder who will knock it down. Who says, yeah I want to live in this squalid piece of [BEEP] for the next few years!
You have to buy when less competition aka risk is high that price won’t go up in short-term. I screamed and yelled all last decade, but was laughed at. That’s how you know you are in the money…feel the same pushback with DNA. Just saying…
Boomer Remover says:
May 15, 2023 at 8:25 pm
I was on another RE related forum and someone said, loosely paraphrasing, if you don’t get into debt, someone will happily do it for you. There’s just too many people who will take on as much debt as the institutions will allow them to drown in. It’s this mania of 120 offers $150K over that’s tough to shake.
My wife doesn’t believe that the winner wasn’t a builder who will knock it down. Who says, yeah I want to live in this squalid piece of [BEEP] for the next few years!
More signs of the coming recession. And remember, there’s no ZIRP this time.
https://www.bloomberg.com/news/articles/2023-05-15/us-households-show-signs-of-stress-new-delinquencies-rise?
$ARKK David Tepper, the hedge fund legend, is officially a fan of Cathie Wood.🤔
Tepper initiated a new $ARKK position, in addition to a new $TSLA position.
Could he be hedging something? Unfortunately we have no clue to his short positions.
So your guess is as good as mine.
$ARKK David Tepper might also be using $ARKK to start betting on a bunch of growth stocks on the long site since most them are still not far all time low.
At current stage, this guess is probably more valid than the “hedging” theory.
https://www.msn.com/en-us/money/other/remote-work-comes-with-daytime-drug-and-drinking-habits/ar-AA1b8OgV
Remote Work Comes With Daytime Drug and Drinking Habits
“Yeah, maybe my eyes are red, but no one can see that on Zoom,” says Ray, a West Coast executive, who typically continues to take a puff of marijuana hourly while on the job — all the long tail of a methamphetamine addiction that he developed during pandemic lockdowns.
I said it already. I used ARKK as a long hedge on short term plays. On market pops, if my shorts didn’t work out, ARKK would pop even more. Most of the stocks in ARK’s porfolio are down 85%, so there’s no much more risk unless it’s a company that should go to zero. But as I said, most people realize they are holding a pile of crap and unload. This ain’t a buy and hold porfolio. It’s a trading vehicle now. And she should be happy with that.
And I thought listening to Howard Stern while working was bad.
“Biology is the next big thing. If I were young today, I would do biology.” — Eric Schmidt.
(Q&A with @johncumbers)
ps: @paulg also mentioned biology as being the next big thing next to AI and fusion energy.
This is bad career advice. I know this because I literally collaborated with people that cured diseases in Janssen pharma. Are they rich? No. Some of them don’t even make $100k a year. It’s pathetic. Meanwhile, I live behind a J&J exec. He pockets millions off their work. Literally. His IQ is probably room temperature. I can give you any number of stories as to why. His latest thing was taking down his playset for his kids. He’s now burning pressure treated wood in the firepit and having his kids roast smores on it.
BRT: And there are people in the office who go out out now for a joint break, and then back to their desks.
3b, I am convinced everyone who works in service industry on Sundays are popping gummies. The service has gotten so bad that I don’t even try to go certain places on a Sunday. I noticed it while driving as well.
This N.J. house got 120 offers, sold for $150K over asking price…
Is there any condition on any house within a 30 mile radius of NYC where a seller gets no offers at all?
Have an offer in for a client on a Park Ridge house. Listing started Friday. Submitted offer Saturday before 9AM. Agent jerked us around until Monday afternoon. Now 3 offers. Waiting for instructions for highest and best.
Listed a condo in West Orange last week. Only 2 offers by Sunday. Only sold for $15,000 above ask.
Market is strong overall but some spots are much stronger than others.
BRT,
You mean the 24 year old restaurant manager, who forgot my ketchup three times, might have been high? The whole staff was high at our Mother’s day brunch. The kid bartender forgot our waters but never shut up about Crumbl cookies. Only ones who were not? The illegal staff running the food and cleaning the dishes.
Old,
I will never understand the Oranges..period. It seems like place where married young kids go pretending to be more mature than Hoboken crowd, while paying a gob in taxes.
Is Rudi really this stupid. Now shes suing him for $10mil and someone is going to pay to get that laptop back.
Tomi T Ahonen Not Selling Pardons for $2 Million @tomiahonen
With attorneys like these, who needs enemies?
Trump ‘personal attorney’ Giuliani put 23,000 emails of Rudy onto her computer – including from before she was even employed by Rudy – that included criminal activities of Trump, Ivanka, Jr, Jared, Pompeo, Bannon, Kellyanne, Hannity
https://twitter.com/tomiahonen/status/1658344123823259648