Title Wise
The New Jersey Real Estate News You Can Use
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Greetings!
The New Jersey real estate market has certain towns and regions with pockets of value that buyers are discovering; some of which are in northern counties. And while buyers continue to assiduously search for affordable homes to purchase, builders are working as fast as possible to fill the gap with housing. The market remains strong, but there are signs that trajectory of prices is becoming more realistic.
Please feel free to email me at ralph@counsellorstitle.com if you have any questions or would like to follow up on any of this edition's articles.
Ralph Aponte
Founder & President
732.914.1400
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A Short List of Emerging Towns
for Northern New Jersey Buyers
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Some towns and regions in New Jersey are receiving some new buyers and consideration for first-time buyers and others seeking a post-pandemic property. The inventory shortages will continue to impact home prices moving forward. Builders are still being hampered by high material costs and labor shortages, so it will most likely take years to replenish inventory to levels considered to be normal. Even with the normalization of the Work From Home economy, buyers are seeking commutes that don't gouge into family and personal time. Buyers are also looking for particular lifestyles that afford to them community-centric regions, walkable downtowns and home prices that are affordable. [And unique to New Jersey, some lower ranges of property taxes.]
Bayonne, NJ - Hudson County
A recent property was sold for $311,000. Considering the average home price in the town is over $500,000, this two-family was a real bargain. The 2 units included a 2-bedroom and a 3-bedrooms that was located close to schools, shopping and restaurants. It even had a fenced-in backyard. The average single-family price has been in the $400K range, with plenty of redevelopment projects in the pipeline. One of the big attractions is its transit system, which has 4 stops on NJ Transit's Light Rail. Plus there is always the New Jersey Turnpike for easy access.
Hackensack, NJ - Bergen County
Homes in Hackensack recently ranged from a low of $59,000 to $1.1 million. Single-family homes in Hackensack typically come in under the median price. The market is considered to be competitive with many homes getting multiple offers. According to Redfin, the average home sells for 1% above asking price and takes about 80 days before going under contract with the average sale price of $375,000.
Oakland, NJ - Bergen County
The median list price for a single-handedly home in August was $559,000, which translated into a 14.4% increase over properties sold in August 2020. Homes range in price from $119,500 to $1.2 million, with the median sold price coming in at a pricey $740,000. According to realtor.com, Oakland, NJ is in a buyer's market, reflecting that there is a greater supply of available homes for sale than there are buyers, with the median days on market coming in at 91 days. (When was the last time you heard that being the case?)
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Building & Construction Boom |
Housing Demand
Domestic housing demand has remained consistently strong since April 2020, with only shortages in building supplies and skilled labor and buildable plots holding it back.
These constrictions to some degree have held some projects back, but in general the demand is one of the strongest in the last quarter century, all the while housing prices hit month-over-month highs.
To a degree, some of this demand was expected by the entry of many first-time buyers into the market as reflected by the increase in new household formation.
From the years 2019 to 2021, there were an additional 2.1 million households formed, which contributed to a total of 123 million new households formed since 2012. For the 18-month period starting in 2020 and ending in June 2021, there were 1.55 million single-family homes started, which represented 7.47 million homes started since 2012 – representing over 26% of all homes being built since 2012 happening in an 18-month stretch.
The higher family formation figures and housing shortages is seen to have an impact on homeowner vacancy rates as the number of vacant houses continues to erode. The homeowner vacancy rates fell from 2% in 2012 to 0.9% in 2021.
In both 2018 and 2019, 43% of new home sales were priced below $300,000. However, in 2020, this figure dropped to 39% and through the first half of 2021, only about 32% of new homes have been sold for less than $300,000.
More than half of all housing starts in the first six months of 2021 were in the South.
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Jersey Markets Stay Jersey Strong |
The recent numbers for New Jersey show a different trend than those in the southern markets, whereas in all 3 categories for single-family homes, sales fell in the state, including new listings, pending sales and closed sales for the month of August. Nationally pending home sales climbed up 8.1%, according to the National Association of Realtors. This was an unexpected jump, according to experts who were expecting a minimal 1% to 2% increase.
Certain counties in New Jersey, such as Monmouth and Ocean counties, continue to climb higher than many other regions. Monmouth climbed in just 3 years from a median price of $420,000 to August’s $611,000 and Ocean’s median price climbed from $299,000 to $430,000.
Primarily most of the biggest increases reported were in the less expensive regions, including the South and the Midwest.
But overall, home prices year-over-year have increased significantly, as reported by S&P CoreLogic, which posted a 19.7% annual home price gain for July.
Three cities that reported the largest year-over-year increases were Phoenix, San Diego and Seattle, reporting year-over-year gains of 32.4%, 27.8% and 25.5%, respectively.
What is most likely occurring is people in the Northeast are selling homes at extraordinary record-high prices and moving south, only to encounter a highly appreciated market in southern regions, where taxes are lower and prices are lower as well. Just consider the Phoenix market, which reported the biggest year-over-year jump: in 2012 the median home price in Phoenix was $109,000, today that median price is $370,000.
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Get This Month's Free Rental Planner Spreadsheet |
Rental Income Planner in Excel Spreadsheet
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A.S.A.P. Attorney Settlement Assistance Program
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Our real estate secretarial services are able to assist you in every aspect of the sale, purchase, refinance or loan closing process. We will directly communicate with all the parties involved in the transaction and coordinate and obtain all the items necessary to bring the matter to closing.
Our ASAP services can be individually customized to fit your needs. These services include:
- Documentation Preparation
- Disbursement of Funds
- Attendance at Closing
- HUD Preparation or
- Post-Closing Matters
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Our Commitment to Excellence |
Counsellors Title Agency wants to thank you for the opportunity to work with you and your clients to grow your business. Please feel free to click the link above or here to leave us a review on Google. We appreciate your business. |
Sales: Leading NJ title insurance agency seeks experienced licensed salespersons to help expand its market share throughout the entire state. Benefits include health insurance, 401k with an employer match, flexible spending account, expense account, & marketing support. Send resumes by fax: 732-914-8898 or ralph@counsellorstitle.com
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Free Online Title Insurance Calculator |
Counsellors Title Agency announced its updated Title Calculator for New Jersey home purchases & refinances at: Title Calculator
Loan officers, real estate agents and home buyers can find out how much title insurance will cost for purchases made in New Jersey.
Easy-To-Use Functionality
This online tool includes many of the endorsements involved in calculating the cost of a title policy in New Jersey. CTA's Title Calculator is a great tool for real estate salespersons, loan officers, attorneys and those who are buying or refinancing their home.
It calculates the cost of title insurance based upon the purchase price of the home, the loan amount, and the various endorsements that can accompany the loan. The calculator provides the user the scalability of selecting the various endorsements involved in the transaction.
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Handy Guide to Real Estate Sources |
Here are some of the most widely used governmental websites for the real estate industry.
I look forward to being of service to you, providing you with outstanding real-time information and some humor to make doing business a pleasure.
Sincerely,
Ralph
Ralph Aponte
Counsellors Title
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Counsellors Title Agency, Inc. specializes in providing title insurance, title search services and loan closing services serving attorneys, Realtors, banks and various mortgage companies throughout the State of New Jersey. CTA offers full search and insurance capabilities within all 21 counties of New Jersey for commercial, residential and new construction purchases in our Toms River, Freehold, Chatham, and Union locations.
CTA is equipped with the latest digital technologies to ensure a complete and timely transaction.
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Mr. Ralph Aponte
Our Office: 504 Hooper Avenue,
Toms River, NJ 08753
Phone Number: (732) 914-1400
Fax: 732-914-8898
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