Hot Markets in the Garden State

Nov 12

Written By Pinnacle Real Estate Investment & Development

New Jersey’s real estate market has been chaotic for more than a year, especially in the beach lined shore communities which has been driven by the search for more space during the pandemic, and the desire for remote work has pumped up sales at the Jersey Shore. Bidding wars and short stays on the market are commonplace throughout these areas, and they’re not letting up. Home prices have spiked upward, and inventory remains slim in the Garden State.

Even along the New Jersey coast, where homes valued at $1 million and higher are in the majority, local agents are seeing their listed properties get snatched up within days, sometimes hours.

There's still not enough inventory and builders are still building homes and can't keep up with the demand. This is happening on a daily basis and it is customary to have multiple offers, and bids that are over asking prices.

Home values in these areas have increased more than 16% since the same time last year, and could jump by another 10% over the next year. This is not a normalized market and these predictions are very realistic because of the lack of inventory and attractive interest rates.

Beach block homes are rarely listed anymore, and if one comes along, they are usually listed in the several millions. These listings usually are sold in days, not weeks due to the short supply for these specific buyers. Reports have shown an increased sale price of over $ 200,000.00 in a (6) six-month period in certain Jersey shore communities.

The pandemic is part of the reason for strong demand all around — folks in metropolitan areas are looking to settle down elsewhere. But at the shore, demand is also driven by retirees that are done with yearly summer rentals and are ready to call these shore communities their new home.

Will these markets remain hot? We looked for communities where home prices and sales volume are accelerating even faster than the vigorous statewide pace, according to data from trade association New Jersey Realtors. These Jersey Shore communities are where builders and developers are betting on redevelopment, or where they detected surging interest from buyers who want to be near the ocean. Developers are eager to find any new development opportunities specific to this area, because they know that these trends will continue as long as inventory remains low and interest rate remain at reasonable levels.