Real Estate is a hot topic. Whether you’re a buyer, seller, investor or simply someone who likes houses everyone wants to talk about real estate and real estate trends. 15 years ago very few people would have predicted that Jersey City downtown house prices would surpass Hoboken, so now people are asking where is the next “hot” market going to be?
As people feel priced out of Hoboken and Downtown Jersey City they are looking further afield, willing to sacrifice their preferred location for more space and the ability to own a single family home for less than the price of a condo. We took a look at three distinct Jersey City Markets—the Heights, Journal Square and Bergen-Lafayette—three areas that have received a lot of press lately.
Sitting right over Hoboken this area gained popularity over the past few years because of proximity to the Light rail stops in Hoboken. There are also numerous buses to NYC. Several new restaurants and coffee shops have sprung up on Palisade and Central Ave, along with a great farmers market on Sundays.
But competition for properties in the area is fierce, with one recent single family home receiving 22 offers. The average single or two-family home ranges from $450K to $550K. The lot sizes tend to be around 20w x 75/100 although there is a wide variety of home types and sizes. Homes further west tend to be less expensive. Anything under $400K is going to need some work.
Journal Square has a PATH station which is a major factor. The City of Jersey City has implemented a Journal Square Redevelopment Plan, also known Journal Square 2060 Plan. The purpose of plan is to foster the redevelopment of Journal Square, Jersey City’s central business district, by providing for transit oriented development of new housing, offices, commercial, and public open spaces within walking distance to the Square and transit facilities, returning Journal Square to a flourishing central business and shopping destination.
The latest project is 808 Pavonia, a two-tower development, one of which will be 55 stories tall with 591 residential units while the other, known as the western tower, would be 49 stories tall with 589 units. Each floor would contain between 12 and 14 units, and the towers would reportedly adhere to LEED certification guidelines.
The newest rental building in the area, “3 Journal Square” is a luxury rental building that opened this week with already 160 of the 240 units rented.
Although the focus in the area is condos and apartments close to the PATH station there are single family homes available in the surrounding area, with the average price once again around $450,000 for a single family home.
The serious lack of inventory in this area has led to numerous bidding wars, with properties going significantly over the asking price.
Located to the west of Liberty State Park, this area of Jersey City has seen phenomenal growth over the past year. According to Jersey Digs condos and co-ops in the neighborhood has increased 89% since the beginning of 2016 and the median price for 1-4 family homes has also gone up to $477,000, a 173% increase from 2016’s first quarter. Prices in this area vary greatly due to the wide range of types of homes available and proximity to the buses and Light rail stations. Numerous development projects have been approved for the area, and new restaurants are starting to pop up, making it more desirable. The area features some beautiful historical homes, with a number of 19th century Victorians and brownstones.
So whereas you may no longer be classed as an “urban pioneer” in these areas, they are all slated for large areas of growth over the next few years and you will definitely get a lot more space for your money.
We’ve all heard stories of people who bought for pennies and sold for millions, but remember, if real estate investing was that easy everyone would be doing it. As always, you should work with a Real Estate Professional who will be knowledgeable about the different areas and help you find the perfect home for you.
*It is important to note that Jersey City is undergoing a property tax revaluation. For more information check the Jersey City official website: http://www.cityofjerseycity.com/Reval/
Here’s a closer look at this week’s numbers in our area:
5 new listings. The average price is $470,779 and the average price per sq/ft is $687.
3 properties closed. The price was $500,333 and the price per sq/ft was $745.
9 new listings. The average price is $889,222 and the average price per sq/ft is $781.
10 properties closed. The average price was $797,400 and the average price per sq/ft was $729.
4 new listings. The average price is $891,974 and the average price per sq/ft is $699.
4 sold listings. The average price was $1,254,531 and the average price per sq/ft was $765.
3 new listings. The average price is $1,749,00 and the average price per sq/ft is $698.
No sold properties.
3 three-bedroom homes listed from $1,099,000 to $2,095,000 and 1 four-bedroom for $3,745,000
1 three-bedroom closed for $1,875,000.
DOWNTOWN JERSEY CITY:
11 new listings. The average price is $655,981 and the average price per sq/ft is $796.
8 properties closed. The average price was $612,237 the average price per sq/ft was $807
11 new Listings. The average price is $988,080 and the average price per sq/ft is $759.
4 properties closed. The average price was $934,280 and the average price per sq/ft was $842.
3 new Listings. The average price is $1,025,999 and the average price per sq/ft is $693.
5 properties closed. The average price was $1,560,000 and the average price per sq/ft was $745.
No new listings
No sold properties.
(Information provided by Hudson County MLS)
Mortgage Market in Review:
Last week, the Fed raised the Federal Funds rate by another quarter of a percent. Keeping in line with recent history, mortgage rates remained stable following the release of this news. Since then, mortgage rates have remained unchanged despite bond market weakness. Another reason for the lack of movement is last Friday’s market movement. Bonds improved throughout the course of Friday, but most lenders didn’t adjust rate sheets to reflect that improvement. As such, Monday’s weaker bond market levels ended up being fairly close to those that were in effect when lenders last set rates on Friday morning. The absence of change continues to be a good thing given that rates remain very close to their lowest levels of 2017.
CLICK HERE for a more detailed analysis from local mortgage broker Michael Mundy…
ALSO OF INTEREST:
Ann Wycherley is an award-winning realtor with over 15 years of solid real estate experience in the Hoboken and Jersey City market.
She has been recognized by the New Jersey Realtors Circle of Excellence for many years, having earned the Gold Level of Excellence for 2015 and 2016, meanwhile awarded Lifetime Membership in the New Jersey Association of Realtors Distinguished Sales Club.
Other accolades include the coveted Centurion Award for the past five years running (2012-2016), which represents the premium level of achievement within the Century 21 organization.