The United States real estate market had quite the wild ride throughout 2021. Prices were climbing everywhere, from the major markets like New York to secondary markets like Utah and Idaho. New Jersey was no different. Prices skyrocketed in several key areas across the state, with affordability decreasing almost everywhere. Winter typically causes a slight stall in buyer and seller activity, and the market resumes heating up in spring. As we move away from a cold, snowy winter, it is time to look ahead at some of the key real estate trends to note in New Jersey this spring.
Northeast New Jersey Trends
For many New Jersey residents, the state is a refuge from the higher prices and the more congested streets of New York City. Many Northeast New Jersey residents commute to New York City to work for the day and return across the water once work is finished. Let’s look at how the market has fared in several New Jersey areas proximate to New York City.
Jersey City is the second most highly populated city in New Jersey and is located directly across the water from lower Manhattan. For years, prices have been steadily rising in Jersey City, hitting a new peak in 2021. According to a report from Realtor.com, the median listing price for a home in Jersey City was $630,000 in January 2022, which was an 8.8% increase year-over-year. This is a continuation of growth throughout the past few years. According to Roofstock, home values in Jersey City have increased 40% in the past five years.
Only a half-hour drive from Jersey City is Newark, the biggest city in the state. Newark is a significant commute from New York City, but many make the trek, and the city is an important economic hub in its own right. Prices have been rising significantly in Newark, which has long been an affordable option for buyers. According to Redfin, the median sales price in Newark was $365,000 in January 2022, a significant 21.7% increase year-over-year. Inventory has been a problem in the area, but according to Rocket Homes, February led to a 26% increase of homes for sale in the city, signifying Newark shaking off some of that winter rust.
Low-interest rates and low inventory are driving up prices across the country. Many New Jersey markets are seeing significant growth because of this. All told, home prices soared 12% in 2020 and then another 15% in 2022, according to NJ.com. Much of this growth was driven by the Northeast, where much of the population is concentrated. Other areas had a significant part to play as well.
Other Relevant New Jersey Trends
Several other areas in New Jersey have seen their prices climb significantly. New Jersey has many significant real estate markets scattered across the state, and numerous areas have seen their desirability increase.
Trenton is a real estate market that is extremely affordable to buyers. It is located only a short distance from Philadelphia and is the state capital of New Jersey, situated along the Delaware River. Prices are increasing in Trenton, although it remains highly affordable. In January 2022, the median sales price, according to Redfin, was $182,500, a 21.7% increase year-over-year. Even with these higher prices, there was an 11.4% increase in homes sold.
Not far from Trenton is Cherry Hill, known as a pleasant suburb that is one of the best places to live in the state. Prices are higher here and increasing. According to Realtor.com, the median listing price for a home in Cherry Hill was $349,900, trending up 9.7% year-over-year. The median sales price exceeded this amount, with the median home in the area selling for $372,500.
New Jersey’s real estate market values continue to climb. As we move away from winter, that will likely only increase. New Jersey is still a state with a lower cost of living than many of its East Coast contemporaries, but with prices appreciating at a significant rate, this may not be the case for long. Still, if you are a New Jersey buyer seeking a new home, there are many great and affordable options to be found this spring.
