Edison, NJ – July 16, 2008 – (RealEstateRama) — New Jersey residents might be surprised to learn that there are many positive aspects about the state’s real estate market. Currently, New Jersey real estate market offers many opportunities, evidenced by areas of positive growth including rising median sales prices in some areas of the state, increasing affordability rates and a high average of accumulated home equity, according to statistics presented by the New Jersey Association of REALTORS® (NJAR®).
“There is no doubt that some New Jersey residents are still undecided as to whether now is the right to buy a home,” said NJAR® Executive Vice President Jarrod C. Grasso. “By highlighting statewide market information, we’re arming the public with the knowledge they need in order to educate themselves and evaluate their housing choices.”
Below are seven key facts about New Jersey real estate buyers and sellers should consider when thinking about a real estate transaction.
- New Jersey homes have generally maintained their values. National news about tumbling residential real estate prices does not present an accurate picture of New Jersey’s local markets. While the national seven year home appreciation rate is 37.8 percent, New Jersey’s is more than double that amount at 80.4 percent. Some areas of the state, Bergen, Essex, Mercer, Cape May and Salem counties, saw median price increases in the first quarter of 2008.
- The market favors first-time home buyers, who make up 40 percent of the New Jersey market. Buyers currently have many more homes to choose from and are benefitting from mortgage interest rates that are near historic lows. Without having to sell previously-owned property, first-time buyers can also take advantage of the increasing rate of affordability. According to the First Quarter 2008 New Jersey Home Sales Report, New Jersey’s housing affordability composite index rose over 100, signifying that a family earning the state median income has the potential to qualify for a mortgage loan on a median-priced home, assuming a 20 percent down payment.
- It’s also a good time to trade up. Homeowners in need of a larger home might be hesitant about listing their current home in a buyer’s market. However, while sellers may have to accept a more realistic price for their current home, the seller of the home they wish to purchase is in the same situation. Realistic pricing is key and REALTORS® familiar with a local market can be invaluable in pricing and marketing your home.
- Owning a home builds long-term wealth. Over the last decade, the median prices of homes in almost every metropolitan statistical area that covers the state have more than doubled; illustrating that homeownership is a sound financial investment that historically outperforms the stock market in building long-term wealth. New Jersey home buyers who purchased their homes seven years ago have accumulated an average of $156,300 in home equity.
- A home is much more than a nest egg. Despite the tax benefits and financial security which homeownership can provide, a recent survey of New Jersey homeowners revealed that the desire to establish a household and have a place to call their own was the number one reason for buying a home.
- New Jersey has a lot going for it. There are many positive economic and market forces in the Garden State that support the long-term health of residential real estate. Reflecting a strong employment market, New Jersey’s median income of $64,470 is the second highest in the country. Also, excellent school systems, proximity to New York and Philadelphia, a thriving tourism industry and an extensive transportation infrastructure all enhance the vitality of this area.
- There are 53,000 REALTORS® in New Jersey that can provide you with localized information. Nine out of ten home buyers in New Jersey choose to work with a REALTOR® and 86 percent said they would probably work with the REALTOR® again. REALTORS® have a thorough understanding of the dynamics of their local markets and are ready to guide potential homeowners through the process.
These seven things consumers need to know about real estate in New Jersey will be featured in a consumer brochure to be distributed to REALTORS® throughout the state in the coming weeks in order to inform their clients with facts about the state’s real estate market. NJAR® is encouraging New Jersey residents to Get the REAL StorySM on real estate in New Jersey with a public education campaign that features an informational website, www.REALstoryNJ.com, designed to assist potential buyers and sellers in learning about New Jersey’s real estate market.
“This is one more crucial step in helping to educate New Jerseyans about the opportunities that the state’s real estate market holds. By going to the website, by researching different options in their area and by consulting with REALTORS®, buyers are able to better understand their local markets and are able to make educated decisions,” said NJAR® President Drew S. Fishman. For more information on the campaign, or simply to Get the REAL StorySM on real estate in New Jersey, visit www.REALstoryNJ.com.
The New Jersey Association of REALTORS®, with approximately 53,000 REALTOR® and REALTOR-ASSOCIATE® members, is one of the largest trade organizations in the state. NJAR®‘s membership is comprised of real estate professionals who subscribe to a strict Code of Ethics and are members of the national and local REALTOR® organizations. As the leading advocate for the real estate industry and private property rights in New Jersey, NJAR® is committed to protecting the dream of homeownership. For more information, please visit www.njar.com.
# # # #
For all media inquiries contact:
Danielle Wyckoff
Media & Public Affairs Coordinator
Phone: (732) 494-4730
Fax: (732) 494-4723
E-mail: dwyckoff (at) njar (dot) com
