Year-End Report | Downtown JC
January 18, 2021 | Dwell JC
According to the latest CoreLogic Home Price Insights Report, nationwide home values increased by 8.2% over the last twelve months. However, here in downtown Jersey City, the year was a turbulent one for real estate values. Overall, downtown Jersey City saw a slight (1%) drop in home sale prices year-over-year. Here is a breakdown by property type:
Where will home values go in 2021?
According to the National Association of Realtors (NAR), the current number of single-family homes for sale is 1,080,000. At the same time last year, that number stood at 1,450,000. We are entering 2021 with approximately 370,000 fewer homes for sale than there were one year ago. The same is true here in downtown Jersey City where inventory remains low.
However, there is some speculation that the lack of inventory will ease somewhat as we head into spring for two reasons:
1. As the health crisis eases, more homeowners will be comfortable putting their houses on the market.
2. Some households impacted financially by the pandemic will be forced to sell.
Low mortgage rates have driven buyer demand over the last twelve months. According to Freddie Mac, rates stood at 3.72% at the beginning of 2020. Today, we’re starting 2021 with rates one full percentage point lower than that. Low rates create a great opportunity for homebuyers, which is one reason why demand is expected to remain high throughout the new year.
Taking into consideration these projections on housing supply and demand, real estate analysts forecast homes will continue to appreciate in 2021, but that appreciation may be at a steadier pace than last year. Here are their forecasts:
Here in downtown JC, there’s still a very limited number of homes for sale for the great number of purchasers looking to buy them. As a result, the concept of “supply and demand” mandates that home values in our neighborhood will continue to hold steady or appreciate as we head into 2021.