In 3Q 2020 the number of sales in downtown Jersey City dropped 28% and the median price fell by 6%
Downtown Jersey City housing market is slowly recovering from the Covid-19 impact, but still not to full extent. Total sales volume is up 35% from last quarter (see table on the next page) but still dropped by -28% year-over-year. In April, May and June there were less buyers out, compared to 3Q.
Increasing supply and the sluggish demand are driving the prices down. The impact is most significant among smaller units. Median prices were down -6% year-over-year and down -4% compared to last quarter. The one bedroom units had a larger drop (-11%) compared to two and three bedroom units.
The larger units are recovering quicker. Two-bedroom unit’s median prices were up +2% compared to last quarter. The number of contracts signed is high as well: 52 as of Sep 30th (vs. 26 last quarter).
Quarter end inventory is high: 137 (vs. 86 last quarter) which means buyers will have a lot of choice and will take their time to make offers.
The inventory of rentals are significantly higher, compared to last year, making landlords to slash prices by 15% to 20% to attract tenants who’ve left for the suburbs because of the pandemic.
Interest rates remain low, which will keep the demand high. Being consistent with the data, we are seeing more buyers coming out to see places. There are some political uncertainty at the moment making buyers hesitant, which we expect to pass after the November elections.
