Updated Forecast for New Jersey Home Prices
A recently updated forecast suggests that the New Jersey housing market could experience rising home values stretching into 2019. Based on current conditions and trends, it appears likely that home prices in the state will continue to climb for the foreseeable future. So say the economists at Zillow, at least. Here’s a look at the latest forecasts for the New Jersey housing market.
Prices Up Nearly 10%, and Expected to Rise Further
According to the latest data compiled and analyzed by Zillow, the median home value for the state of New Jersey rose to around $313,000 as of June 2018. That marked an increase of 9.2% from the same month a year earlier.
Home prices in the state have been rising in a more or less steady fashion since the start of 2013, after a period of decline that occurred during the Great Recession. But the state’s median home price (the midpoint for house values) is still a bit lower than it was during the last peak.
Looking forward, the company’s economists forecast that New Jersey’s median home value would rise by around 7.6% over the next 12 months. This prediction was offered in June 2018, so it extends into early summer of 2019. Their outlook for New Jersey was slightly higher than the national forecast, suggesting that the state could experience some healthy home-price gains over the coming months.
To put those forecast percentages into perspective, home prices nationwide have risen by an average of around 4% to 5% over the last few decades.
Real estate prices and conditions can differ widely from one market to the next. Overall, however, experts are forecasting an upward trend for home values through 2018 and into 2019.
Inventory Remains Tight in Some Housing Markets
In some housing markets across the state (like those in Bergen and Hudson counties), these positive predictions are the result of tight inventory conditions. Strong demand and limited supply are putting upward pressure on home values, and are forcing buyers to compete for limited inventory. In other areas, there’s more supply available.
Similar conditions are being reported in cities elsewhere across the country. That’s why so many housing news stories talk about a “lack of inventory.” It’s a national trend at present.
As of spring 2018, housing markets across New Jersey varied quite a bit in terms of their supply-and-demand situations. Some cities and towns were fairly balanced, with enough inventory to satisfy demand. Other markets were more constrained.
Jarrod Grasso, CEO of the New Jersey Association of Realtors, recently pointed to the inventory situation as being a dominating factor in local real estate markets. He told the WKXW radio station: “Here in New Jersey, inventory is low, which is driving prices up slightly over the last several months.”
He singled out Monmouth County, in particular, as being one of the state’s hottest housing markets as of spring and summer 2018.
All of these factors have had a positive effect on home prices across the state, in recent years. They’re also what’s behind the positive forecasts for the New Jersey housing market forecast, like those mentioned above.
Disclaimer: This article contains real estate predictions and forecasts offered by third parties outside of our company. We have compiled them here as an educational service to our blog readers.