Is there a housing bubble in New Jersey? Not according to the latest statistics. Existing home prices in the Northeast are up by 1.3% since September 2014, and home prices are up in New Jersey by 2.4%.
Check out these opinions from industry experts:
Christopher Thornberg, Founder, Beacon Economics:
“The housing market is far from overheated.”
Ray Torto, Harvard Lecturer, Retired Chief Economist at CBRE:
“I would not characterize the multi-housing market as in a bubble.”
Calvin Schnure, SVP of Research & Economic Analysis, NAREIT:
“Given all the demand and little supply the residential market is FAR from overheated.”
Rajeev Dhawan, Director of Economic Forecasting Center at J. Mack Robinson College of Business, Georgia State University:
“To have a bubble, you need to have construction rates higher than the perceived demand, which is what happened in 2003 to 2007. Right now, however, we have the reverse of that.”
Victor Calanog, Chief Economist, Reis:
“The housing market has yet to show evidence of systematic runaway asset price inflation characterized by home prices rising much faster than household income.”
Andrew Nelson, US Chief Economist, Colliers International:
“I don’t think there is a housing bubble.”
Mark Dotzour, Chief Economist, Texas A&M University:
“We are not in a housing bubble. We are in a situation wheredemand for houses is much higher than supply.”
George Raitu, Quantitative & Commercial Research, NAR:
“We do not consider the current market conditions to present a bubble.”
Robert Bach, Director of Research – Americas, Newmark Grubb Knight Frank:
“I don’t think the housing market is overheated based on demandand supply fundamentals.”
Furthermore, current average annual appreciation rates are more along the pre-bubble norms at 3.9% now vs. 3.6% before the bubble. As seen below, current rates are far from the 7% we saw during the bubble. We project that the housing market is still on its way to a healthy recovery.
National award-winners and seasoned Realtors with over many years of experience in Northern & Central New Jersey, Rahul & Smitha and their team have become New Jersey’s “Go To” agents and consistent leaders with a reputation for tenaciously protecting their clients’ interests. They specialize in Morris, Somerset, Essex, Union and Passaic counties.