Almost eight years have passed since the great crash, we’ve made significant turn around since then but the best is yet to come. What lies the future of US real estate market?
Digging into some research work and talking with real estate agents and investors revealed some interesting statistics for the year ahead which I am tempted to share here!
“Job creation fuels home purchases,” appraiser Jeffrey Otteau of East Brunswick, who researches the real estate market statewide, told an audience of real estate agents in Hasbrouck Heights. “The market is stable, we are heading for a grand show once again,” Cashmere, VP, CSRrealtyinvesting.com is much optimistic.
A simple statistics shows that in New Jersey employers created 81,500 jobs last year, which in turn helped push the home sales up by 17%, the highest since 2005. Places closest to the New York City are experiencing robust growth due to the lowest unemployment rates and the best housing markets. At the same time sales along the shore are showing less growth due to the changes in flood insurance rules after Super-storm Sandy.
Home owners will benefit from the lack of inventory and low mortgage rates and easier credit, the outcome is therefore positive but not the best.
The Federal Reserve announced rate hike in December which was somewhat predicted.There is a general consensus that the mortgage interest rate will continue it’s upward trend but the cost will not effect much as it is only 0.25 percent and will likely be incremental.
Performance of Bronx, NY
Bronx, the epicentre of real estate development is showing fluctuating results. For the past 10 years, analysis shows that the median sale price in the borough has been within the range from its high point in 2010 ($280,000) to the low points in 2005 and 2008 ($240,000).
Interesting to note while before 2008 the number of total transactions exceeded 3,000 per year, it dropped to under 2,000 after 2009. This drop in sales volume was immediately followed by a rise in the median sale price.
According to property shark analysis the median price reached $250,000 in 2015, a modest 2% increase Y-o-Y.
The top neighbourhood was Morris Park, where the median sale price was $464,500 with a number of sales 30 followed by Spencers Estates- Country Club with $427,000.
Here is the list of top ten neighborhoods in the Bronx:
- Morris Park: Median Sale Price $464,500.
- Spencer Estates- Country Club: Median Sale Price $427,00.
- City Island: Median Sale Price $415,000.
- Pelham Gardens: Median Sale Price $414,500.
- Locust Point: Median Sale Price $378,691.
- Van Nest: Median Sale Price $377,500.
- Pelham Bay: Median Sale Price $375,000.
- Throggs Nest: Median Sale Price $372,4500.
- Riverdale: Median Sale Price $347,500.
- Castle Hill: Median Sale Price $345,500.
The most expensive deal was done when the large suburban residence at 4680 Livingston Avenue was sold for $2.9M. Land covering almost 40,000 square feet, it offers the new owners 5,200 square feet of living space.