A fresh round of housing forecasts suggest that home prices in the state of New Jersey could rise faster than the national average in 2019. In some cities (such as Newark, Jersey City and Paterson), home prices are predicted to rise by double digits over the next 12 months or so. These forecasts come from the economic research team at Zillow.
Strong Home-Price Forecasts for New Jersey Cities
Home prices in most New Jersey towns and cities have risen steadily over the last few years. The same goes for most cities across the U.S.
Recent forecasts point to a continuation of this trend. In fact, one set of predictions suggest that many New Jersey cities could far exceed the national average for home-price appreciation over the next year.
In October, the housing analysts and economists at Zillow issued some new projections for home prices in New Jersey. By their estimation, the median home value for the state could rise by around 7.1% over the next 12 months (ending in October 2019). That’s higher than the actual recorded gains of the previous 12 months. It’s also higher than the national forecast for the next year.
But when you drill down to the municipal level, the home-price forecasts are even stronger. For some cities and towns in New Jersey, the company has predicted double-digit home price gains between now and fall of 2019.
Here are some examples:
Newark: The team of analysts predicted that the median home value in Newark would rise by a whopping 12.6% over the next year or so, through fall of 2019. That’s nearly double their outlook for the nation as a whole. The median price in Newark is currently around $233,900, as of October 2018.
Jersey City: The group sees home values in Jersey City rising by around 12.8% over the next year. So this forecast resembles the one issued for Newark. At present, the median house price in Jersey City is around $456,000.
Paterson: The real estate market in Paterson, New Jersey is also expected to keep appreciating at a steady pace. In October 2018, it received a one-year home price forecast of 13.1%. The median value in Paterson was around $236,000 when this article was published.
Elizabeth: The largest city in Union County had a one-year home value forecast of 10.2%. The median price in Elizabeth is currently around $264,000.
The Big Picture
Granted, these are just forecasts. They’re an educated guess based on current conditions within the real estate market, and expected changes over time. There’s plenty of room for error with this kind of prognosticating. So we probably shouldn’t get too wrapped up in the exact numbers being projected here.
It’s the bigger picture that’s important, and it can be summed up as follows:
- Forecasts from several sources suggest that home prices in New Jersey will continue to rise throughout 2019, as they have done in recent years.
- In some NJ cities and towns, home values are predicted to rise by double digits between now and the fall of 2019.
- Home buyers who are “on the fence” about making a purchase might want to consider doing it sooner rather than later, to avoid higher housing costs down the road.
Disclaimer: This article includes forecasts and predictions issued by third parties outside of our company. We have presented them here as an educational service to our blog readers.