New Jersey's Real Estate MarketAnyone who has ever tried to battle the traffic to reach the Jersey Shore's beaches on a Friday night knows it: New Jersey's crowded. In fact, the 8.7 million residents packed into its 7,417 square miles make it the country's most densely populated state, according to 2004 U.S. Census data. This isn't good news for home buyers, who are facing median home prices of $380,886 in an area that includes most of the northern half of the Garden State. That's nearly double the national median of $208,500, according to Economy.com and the National Association of Realtors. It doesn't look like the supply of new homes is going to fill the demand gap anytime soon. Housing starts in the same area of the state fell 13.5% to 3,226 in the second quarter from 3,730 a year earlier, according to Property & Portfolio Research Inc., a Boston-based real-estate consulting firm. That lags behind national housing starts, which were about flat in the second quarter, according to the National Association of Home Builders. Home builders said the state's passage of the Highlands Act, which aims to protect water quality by controlling development on 1,250 square miles of the state's northwestern region, increased the upward pressure on home prices by putting a higher premium on the remaining available land. "Economics 101 kicks in when there's more people wanting homes than producers are able to produce," said Larry Sorsby, CFO of Hovnanian Enterprises Inc, a Red Bank, N.J.-based home builder. Read more: Whether looking to purchase or sell a home or curious about investment properties in Bergen County, New Jersey, Alper will provide a complete overview of the market for you. Please feel free to contact Alper at your convenience. |
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