Now that we have entered the new year real estate investors are seeking new information regarding the trends in real estate for 2022. It is important for investors to be aware of these upcoming predictions and changes to the market as that is what impacts their investment decisions. These predictions are also crucial for people looking to purchase homes or rent any sort of property as the prices could be drastically different than years past. Keeping up to date on the new year’s real estate market predictions is essential for everyone looking to get into the business.
This article will focus on New Jersey’s housing market predictions in 2022. This past year, New Jersey saw quite a lot of competition in the real estate market. It was frequent to see a home in a bidding war, as there wasn’t much inventory of properties on the market. People who wouldn’t have sold their homes in a normal market were seen selling their homes for a much higher price than they were worth. These sellers were able to ask for such a higher asking price as people were looking to move into New Jersey and take advantage of the low mortgage rates. As NJ saw such an interest in its real estate market in 2021, this article will look at what is to come to the NJ housing market forecast 2022.
What Were The Trends In The Housing Market In Late 2021?
Before you can understand what is predicted for the real estate market in NJ in 2022, it is important to look at some of the trends seen toward the end of 2021 and how these trends might shape 2022. It can clearly be seen that NJ is a seller’s market. The desire to live in NJ is growing due to the low price of mortgage rates. This means that homeowners who normally wouldn’t have considered selling their homes are deciding to now as they can have a huge asking price on their home and it is likely someone will purchase it.
The month’s supply of inventory, which essentially refers to the number of months it would theoretically take for the current number of homes on the market to sell at its current sale pace, dropped more than 30% in 2021. This directly relates to why homes are selling so quickly. Additionally, the lower number of months supply of inventory is also why the asking prices are increasing so much. The average price of a traditional single-family home in NJ in 2021 was around $440,000 which is higher than a 7% increase than the average price the year before.
What Are The Current Trends In The NJ Housing Market Forecast for 2022?
The current trends in the NJ housing market forecast 2022 are similar to how they ended in 2021. The median price value for a traditional home in NJ is around $430,000. Although this price is a little different than the average price of how many traditional homes sold in NJ in 2021, this is because this is what the homes are valued at, not the average price of what these homes sold for. The value of these homes has also increased almost 17% from the past year and is expected to keep increasing in this new year.
As both the average price of how much traditional homes sell for and their overall value were increasing at the end of 2021, they are predicted to continue to increase in the new year. Below are some other important NJ housing market forecast 2022 data that are being used to predict the new years real estate trends in NJ:
Toms River, New Jersey ( Ocean County)
- Properties For Sale: 361
- Traditional Listings Available: 288
- Average Price Of Traditional Home: $440,478
- Average Traditional COC Return: 3.39%
- Average Airbnb COC Return: 6.96%
- Average Of Traditional Price To Rent: 15.93
- Average Of Airbnb Price To Rent:8.21
Ocean City, New Jersey (Cape May)
- Properties For Sale: 133
- Traditional Listings Available: 18
- Average Price Of Traditional Home: $940,193
- Average Traditional COC Return: 1.09%
- Average Airbnb COC Return: 2.04%
- Average Of Traditional Price To Rent: 38.67
- Average Of Airbnb Price To Rent: 22.56
Newark, New Jersey ( Essex County)
- Properties For Sale: 147
- Traditional Listings Available: 763
- Average Price Of Traditional Home: $381,796
- Average Traditional COC Return: 2.08%
- Average Airbnb COC Return: 4.34%
- Average Of Traditional Price To Rent: 19.12
- Average Of Airbnb Price To Rent: 11.35
Manchester, New Jersey ( Ocean County)
- Properties For Sale: 159
- Traditional Listings Available: 50
- Average Price Of Traditional Home: $359,988
- Average Traditional COC Return: 2.53%
- Average Airbnb COC Return: 8.34%
- Average Of Traditional Price To Rent: 17.84
- Average Of Airbnb Price To Rent: 6.32
Lakewood Twp, New Jersey ( Ocean County)
- Properties For Sale: 101
- Traditional Listings Available: 19
- Average Price Of Traditional Home: $453,014
- Average Traditional COC Return: 2.83%
- Average Of Traditional Price To Rent: 18.63
Jackson, New Jersey (Ocean County)
- Properties For Sale: 184
- Traditional Listings Available: 32
- Average Price Of Traditional Home: $537,429
- Average Traditional COC Return: 2.77%
- Average Of Traditional Price To Rent: 17.51
All of the cities and towns mentioned above are the areas located in NJ that have the most properties for sale. These are also the areas in which the average price of these properties is likely higher, or has the potential to sell at a higher price if listed on the market. This is because these are the most sought-after areas to live in NJ. These cities are expected to expand in the NJ housing market forecast 2022.
New Jersey Cities, Should I Invest There?
The two largest cities in NJ are Newark and Jersey City. Both of these cities have much larger populations than the rest of the cities and towns located in NJ. As an investor, you may be thinking about looking to invest in these cities if you are looking to invest in the state of NJ. We will take a deeper look into the NJ housing market forecast 2022 in both of these cities to determine if it is a good real estate investment.
Data and Trends for Newark, New Jersey in 2022
Newark is the largest city in NJ, with a population of over 311,000 people. In the new year, this population is going to continue to grow as more and more people are moving into NJ and its cities. There are a fair amount of properties for sale in Newark at around 147 properties for sale. The average price for a traditional property in Newark is actually under the state’s average at about $381,796. This may be a good thing for investors though. As the price is still on the lower end, purchasing an investment property now in Newark could be a smart decision and the average price is expected to rise in 2022.
In Newark, the current data shows there is pretty good cash on cash return or COC, on both traditional and Airbnb properties. For traditional, the COC return is around 2.08% while it is around 4.34% for Airbnb. This shows that investors are generating cash flow and income from their investment properties in Newark. These statistics are predicted to grow in the upcoming years though as the average price for properties is expected to increase. If you are an investor looking for an investment property in NJ, it could be beneficial to purchase a property sooner than later, because you can get it at a lower price and in the future grow your COC return on the property when you rent it out to travelers.
Data and Trends for Jersey City, New Jersey in 2022
Jersey City is NJ’s second-largest city with around a population of just under 300,000. Although it is NJ’s second-largest city, Jersey City is still growing quite a lot and is expected to continue to grow significantly in 2022. In the past few years, Jersey City has increased by over 9%. As Jersey City doesn’t really have any suburban areas outside the city itself, all of the people moving to the area are looking for properties directly in the city.
If you are an investor looking in the NJ housing market forecast 2022 for an investment property, Jersey City could be a good location for you. There are plenty of properties available to look at if you are looking to purchase a property in Jersey City with around 365 properties available. Although Jersey City is the second-largest city in NJ, its average price for properties is much larger than Newark. The median price of a property in Jersey City is around $749,541. This is because Jersey City is creating a reputable name for itself. It is said that Jersey City is becoming an alternative to New York City. This is because it is fairly close to New York City itself, but has much more reasonable housing prices than NYC.
Jersey City also has a fairly good price of home value at just under $600,000. Jersey Cities’ home value has increased over 5% in the past few years and is predicted to continue to increase as people are moving into the city. There could be an even more extensive movement of people into Jersey City in 2022 as it is making a name for itself as an alternative to NYC.
While there are traditional houses located in Jersey City, larger apartment complexes and condominium complexes are by far the most popular types of properties in Jersey City. Apartments and condos account for over half of the housing units in the city. These styles of housing in Jersey City include typical apartment buildings, condominiums, houses converted into apartments, single-family detached homes, and a few other styles of detached homes. Out of these properties, around 70% of them are rentals.
As an investor, Jersey City could be a great area to invest in as almost 70% of the properties in Jersey City are rentals. As the city is expanding and people are looking to move in and find housing, rental properties will always be needed in Jersey City. It is likely you will have a profitable return on investment as well as the desire to live in Jersey City is growing, so the prices will also increase the cost to live there. The NJ housing market forecast 2022 predicts the city will continue to grow and the cost of living will increase.
If you are thinking about investing in the Jersey City area, use Mashvisor’s Property Marketplace tool to explore all types of properties around Jersey City.
This tool allows investors to search through a wide range of properties, including ones that are off-market or not listed in the MLS. Some of these properties include rentals, foreclosures, and more. You can also narrow down the search by adding specific requirements and desires of a property into the search engine. This will filter out properties that do not match your wants and needs.
The Pros of Investing in the Garden State
There are many reasons why NJ could be a great area to invest in. As mentioned before, NJ is one of the largest growing areas in the county with many people moving to the state for the low mortgage prices. Here are some additional reasons as to why one should consider investing in NJ real estate:
New Jersey is Considered a Cheaper Alternative to NYC
NYC can be a very expensive place to live. People want to live in NYC for a variety of reasons, whether it be for work or to experience the amenities of living in a large city. Although NYC is a desired place to live, it is not really affordable and many people cannot live there due to the high housing prices. New Jersey is a great alternative to NYC. Specifically, Jersey City, New Jersey, is becoming known as the alternative to NYC. It is a great place for people to move to if they want to live in NYC without the high housing costs. Jersey City is much more affordable for people. Additionally, Jersey City is close to NYC with just a train ride or a short drive away. This means people can experience all of the attractions to NYC and the attractions of Jersey City itself.
As people are moving into Jersey City and it is predicted to continue to grow in 2022, investors should look at properties in Jersey City to invest in. As it is the desired location, it is certain someone will be interested in renting your property as the NJ housing market forecast 2022 is predicted to increase.
Additionally, Jersey City allows Airbnb. Not all areas in NJ tolerate Airbnb properties. As Jersey City is both a place where people are looking to move to or travel to for a short period of time, Airbnb properties could be a great investment opportunity for investors. The fact that Jersey City allows Airbnb is especially unique as NYC does not. This will attract travelers who are interested in visiting both NYC and Jersey City. They can stay in the type of property they want while experiencing both of the cities. Investors should take advantage of this opportunity in Jersey City.
New Jersey is Considered More Landlord Friendly
If you are an investor, New Jersey is a much better place to be a landlord in than NYC. There are many regulations that make being a landlord much easier in NJ than in NYC. In NYC, if it is needed you have to evict a tenant for not paying rent or any other issue, it could take weeks or months for you to be able to evict a bad tenant. In NJ, this process is much quicker and you can evict a bad tenant basically right away if they are causing issues.
Although anyone can be a good tenant, more families than young adults are looking to move to Jersey City as NYC attracts more young adults. Families tend to be better tenants than single residents who are younger and on their own. This means they are more likely to not cause any issues and pay their rent on time etc. Families are also more attracted to Jersey City than NYC because the school districts are much better in NJ. Good schools mean families are looking to stay in NJ for a long person of time. As an investor, this means you won’t have to worry about someone trying to break their rental contract. These trends are great for the NJ housing market forecast 2022.
In Conclusion
This article has reviewed the NJ housing market forecast 2022. Investing in real estate in NJ could be very profitable as it is a growing state with many people looking to move into the cities. The average price of homes all throughout the state has grown tremendously throughout the years and is predicted to continue growing in 2022. Mashvisor offers many tools to help investors make the best investment decision. Sign up for Mashvisor now and get 15% off.