Downtown Jersey City’s Housing Boom

Capturing this dynamic real estate market with data is never easy, but this chart gives you a snap-shot of the past five years of housing boom for 1-4 family townhouses in Downtown Jersey City. With housing prices rising and inventory at a 20-year low, the housing market in Downtown Jersey City should continue to soar despite tax increases due to the revaluation.   As you can see from the data, the number of listings fluctuated between 65 and 87 per year with 80 homes sold in 2017.  At the same time, days on the market also held relatively steady between 36 and 53 days.  The sold price has continued a steady rise with the average price increasing from approximately $890,000 in 2013 to $1,380,000 in 2017, a 56% increase.  These factors suggest that 2018 will once again be a strong seller’s market.

Chart depicting home sale trends in downtown Jersey City

Although the Mayor has called for a second revaluation to be conducted in 2019, the data also suggest that the Downtown real estate market will not be dramatically affected by the tax revaluation.  With inventory low and valuations rising, the trend is expected to continue.   Although, certain folks will certainly be motivated to sell their homes due to the tax increase, those buying homes in the $1.4 million price range will most likely be prepared to pay the higher taxes, which are comparable to other similarly priced homes in the region.

For those who consider selling their homes in Downtown Jersey City, it should be no surprise that our market also follows seasonal fluctuations.  Sellers should keep these fluctuations in mind and remember the laws of supply and demand in deciding when to sell. When demand is highest and supply is limited prices go up.  This means that there is an optimal time to list that perfectly aligns with peak demand to command the highest price.

 

Annual Share of Homes Sales by Month

As the chart above illustrates, homes sales peak in June and are at annual lows in January.  In Jersey City, the average time it takes from listing a home to closing is approximately 3-4 months, which means March is the best time to contact your real estate agent to begin the planning and scheduling process.

In order to help folks who may be considering whether or not to sell their homes, I am offering to prepare a Comparative Market Analysis (CMA) report, which will give you an indication of what your home may be worth.  If you are interested in receiving a free CMA report, please feel free to contact me at tom.wgcrealty@gmail.com.

This article was prepared by Thomas Gibbons, a licensed Real Estate Agent at Warren G Curtin Realty.

Photo of Tom Gibbons with Dwell | JC logo

Disclaimer: This article is not intended to provide any conclusions regarding the value of a specific property. Homeowners should consult with their professional tax advisers regarding how revaluation may impact their 2018 taxes and an appraiser regarding home value.