on trend
the state of real estate An expert sets us straight on buying and selling in New Jersey and what the statistics really mean.
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health, says Glazer. Better yardsticks are median sales prices and the volume of sales and pending sales.
hether you’re in the market or just thinking about taking the plunge, staying on top of real estate trends is like following what’s hot in fashion or technology—things are always changing. Real estate is so local, says Tg Glazer, president of New Jersey Realtors, that some trends even vary from town to town. He notes what’s happening in New Jersey real estate:
Next step for boomers If your nest has been empty a while, you may be joining the baby boomers’ move to downsize. Couples and individuals reaching retirement age will continue to have an impact on the housing market as they let go of the family manse and head for cozier quarters. Modern adult communities that are move-in ready are the preferred option among older baby boomers (65 to 74). But they’re not everyone’s cup of tea. “Some will want to take on a project,” Glazer says. “They’ll select a fixer-upper to make their own.”
Young couples on the move Millennials are finally flying the coop. These 25- to 34-year-olds, perhaps driven by the slight rise in incomes we’re seeing at last and the desire to start families, make up the state’s largest age demographic of home buyers at 26 percent, according to the 2015 Profile of Buyers and Sellers for New Jersey from the National Association of Realtors. Their older siblings, Generation X (35 to 44), are 24 percent of the market. Statistics also show that two-thirds of last year’s millennial home buyers were married couples, two-thirds of whom were childless.
…but don’t judge a market by its top Buyers are opening their wallets and shelling out
more for homes than in the past, but don’t mistake the spending for a full economic turnaround. Yes, there were a dozen North Jersey homes that sold for more than $4 million last year—four more than the number sold in 2013 or 2014, according to New Jersey Multiple Listing Service. But that’s not a true indicator of the economy and housing market
Renting vs. buying It isn’t always better to buy, but when rentals are rising faster than home prices—as they are now in New Jersey and across the nation—buying a home can be the more affordable long-term option. According to the National Association of Realtors, more than 85 percent of the nation’s markets have average rents that exceed 30 percent of the renters’ average incomes.
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Luxury is in… The top of the market is bubbling as the supply of high-end properties meets the demands of home buyers, particularly in towns such as Alpine and Westfield. Alpine, New Jersey’s most expensive zip code, has nearly 40 homes with price tags in excess of $1 million. And there are many properties selling in the seven-figure range in Westfield, Glazer notes, both new construction and existing houses. “There seems to be a large supply and demand for homes in this price range and for luxury in general,” he says.
Drawn to downtown It’s the ideal situation: Step out your front door and have everything you need within walking distance. Communities with robust downtown business districts—Princeton, Ridgewood and Summit, among others—are a popular draw for home buyers. Such towns are double winners if they also feature convenient public transportation to the employment hubs of New York and Philadelphia. Says Glazer: “In New Jersey, where so many commute to the major cities on our borders, many buyers base their decision on the ease of their commute.”
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4/7/16 11:03 AM