The Jersey City real estate market has enjoyed significant price increases over the last 10 years.  The price increases in 2005 and 2006 were in double digits.  While 2007 reflected a slow down, the average price in 2008 still inched up around 4%.  Prices in 2009 are slightly down with higher priced properties seeing the most significant decline.

While the ongoing housing crisis may be crippling markets nationwide, the one place that has been less affected by the downturn is in Manhattan and the closer in areas of New Jersey.  However, that has sdtarted to change.

At this time of year, the housing market has come off a relatively quiet Second Quarter homebuying season and is starting to slow down significantly now that Fall is here.

While significantly less inventory came on the market in the last 12 months, the list price level is still showing some softness.  Even though things are slowing, Jersey City home sellers still hope for some price gains when they sell their properties.  This is primarily because of the higher price levels in Manhattan and Hoboken’s continued resurgence.

The slowdown in new condo construction in Jersey City has been accompanied by an overall slowdown in new construction list price appreciation and by some “significant” list price discounting of many new construction units.

In 2008, average condo prices in Jersey City Downtown were 4% higher than in the same period in 2007.  What we see in 2009 that is particularly significant is that there is much less inventory on the market in 2009 versus either 2008 of 2007.  Even so, some buyers are still experiencing competition for the best properties in Downtown Jersey City.  Total inventory stands at about the 10-12 month level.

Jersey City (along with Hoboken and other towns in the NY Metro area) has lagged the national real estate slowdown; but, we are now seeing some developers bring new construction and condo conversions to the market with significant incentives and list price discounting to both Buyers and especially to their Realtors.

Given its ideal location directly across from Manhattan, Jersey City still benefits from the higher price levels in Manhattan.

The newest and largest addition to the housing inventory over the last year were the new condos at Montgomery-Greene, Liberty Terrace, KHOV at Exchange Place (77 Hudson), the “A”, Crystal Pointe, Grove Pointe, Gulls Cove, and the range of Liberty Harbor North buildings.  The Portifino, Zephr Lofts, and the Avalon Tower also added additional updated properties to the housing inventory this year.  In the next couple years, additional condo properties at Trump Plaza, and Liberty Harbor North are all in the pipeline plus an assortment of smaller buildings.

Reported by Pam Bell, Broker ABR & ABRM & ePRO