There’s some great news on the horizon: the New Jersey property market is looking strong for 2019. Part of the reason why this is the case is because 2018 was a good year for NJ and there is already a shortage of properties going into the spring season. An inventory shortage means higher demand and higher prices. Plus, the unemployment rate in NJ is low, so this should help out with the housing market as well.
Knowing that we have a lot of positive trends to look forward to, here are our New Jersey housing market predictions for 2019. Buckle up!
Buyers are Seeking Move-in Ready Homes
Millennials and first-time buyers want move-in ready residential homes. Because young buyers typically don’t have huge down payments, they put little down and have a higher mortgage. This means less money to make home improvements.
Move-in ready homes are highly desirable because buyers can move in over the weekend and not have to worry about painting, replacing carpet, installing lights, etc. The most in-demand features are open layouts, hardwood flooring, and white kitchens. Millennials also look for homes that are located near trains, shopping, and town centers.
Mortgage Rates Will Settle in around 5%
Mortgage rates in New Jersey have leveled off, even though housing prices continue to climb. According to Freddie Mac, the average rate for a 30-year fixed loan is 4.94%. This number is expected to stay roughly the same, which is good news for home buyers. Of course, interest rates vary based on a number of factors, such the type of loan being used, the borrower’s qualifications, etc.
House Prices Will Continue to Rise across New Jersey
Home prices are expected to climb over the next months, especially as we move into spring and summer. In November 2018, the median home value in New Jersey was around $321,000. Zillow also predicted that the median home value in NJ would rise by almost 6.8% over the next year. Increasing home prices and low interest rates should drive in more of those “on the fence” buyers.
Final Thoughts
It’s clear that we have a lot to look forward to in the coming year. Prices are on the rise, interest rates are low, and underwriting standards have eased up. Move-in ready homes that have the latest features will be most attractive to buyers, so it’s worth knocking down walls, painting cabinets white and installing hardwood flooring before listing. Of course, the biggest factor is location, as millennials want properties that are centrally located and accessible to big cities.
