Sales of homes in this category are booming in NJ
While home sales overall dropped 22% last year, there is one exception: luxury homes, or homes that sell for over $2.5 million.
According to NJ.com, sales of that type of home increased by 3% last year and are up an eye-popping 30% so far this year.
One of the reasons for this is luxury home buyers, high net-worth individuals, are less sensitive to fluctuations in mortgage interest rates.
Jeffrey Otteau, a real estate economist of the Otteau Group told NJ.com, that "the stronger performance of the super-luxury segment is attributable to inflation and elevated mortgage interest rates being less consequential for affluent households with higher disposable income and savings."
Sales were down the most for homes in the most affordable range for most people, those under $400,000; they fell 27%.
According to Redfin, though, home prices have continued to rise: In January 2024, home prices in New Jersey were up 15.9% compared to last year, selling for a median price of $494,300.
On average, the number of homes sold was down 7.1% year over year and there were 5,343 homes sold in January this year, down 5,754 homes sold in January last year. The median days on the market was 42 days, down 14 year over year.
So even though sales are down, prices still continue to go up. The top areas for price increase are as follows:
🏡 Fort Lee: An impressive 144.0% growth in sales price.
🏡 North Bergen: A substantial 58.5% increase.
🏡 Union City: A commendable 55.8% rise.
🏡 Trenton: A solid 26.7% gain.
🏡 Paterson: A notable 26.2% upswing.
If you’ve been waiting for prices to cool off, you may be waiting awhile.
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Gallery Credit: Stacker
Opinions expressed in the post above are those of New Jersey 101.5 talk show host Bill Doyle only.
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