The report, which measures the value of residential real estate in 20 major US metropolitan areas, found that real estate prices across the United States are up five percent over last year.
Interestingly, the rise in the cost of buying a home in New Jersey and New York is still lagging considerably behind the rest of the country. According to the report, the Northern NJ and New York regions saw homes price go up by just 1.7 percent. This was the weakest of all regions examined by the index. By contrast, the extreme other end of the country, the Pacific Northwest, saw the cost of purchasing a house rise by the largest percentage. Moreover, nearly half of all regions covered in the report had home price growth of at least six percent when compared to the previous year.
While there may still be room for optimism about the NJ real estate market going forward, there is concern among real estate experts that there could soon be a regression of the men when it comes to home prices nationwide. For instance, David M. Blitzer, the managing director and chairman the Index Committee at S&P Dow Jones Indices, cautioned that the current inflation rate of less than two percent means that the home price growth rate is “probably not sustainable over the long term.” Additionally, home prices in the US still remain significantly below their peak values from 2006 – and this is particularly true for home prices in the the New York and New Jersey markets.
One reason for the real estate market gains in recent months could be a concurrent rise in median household income in the US. According to census data, median household income went up by more than five percent last year. However, New Jersey residents struggled to match the nationwide gains, with median income going up by just 0.3 percent. This could provide some insight into why the NJ real estate market lagged behind the national real estate market.
For additional information, view the NJ.com article, “Home Price Growth in NYC, North Jersey Lags Rest of U.S.”
If you are looking to buy a home, or sell a home, in New Jersey, or if you need help with a debt-related issue, you should speak to a qualified real estate and debt relief lawyer. Joel R. Spivack, Esq., is an experienced real estate and debt management attorney who can assist you throughout the home buying, home selling, or home foreclosure process. Contact Mr. Spivack today to schedule a free consultation.