Dear Ralph,

Can the New Jersey home buyer hope that affordability will shift back to the buyer? We look at 3 things that will most likely impact the real estate market. There is also good news with respect to population growth in Monmouth and Ocean Counties. We also take a look at the states with the highest median home prices... and where New Jersey stands.

Please feel free to email me at ralph@counsellorstitle.com if you have any questions or would like to follow up on any of this edition's articles.

Ralph Aponte

Founder & President

732.914.1400

Feel free to book a call to discover how we can serve your needs.



Population Growth in New Jersey

by Anthony DiMaio

National Home Price Trends 

Population Growth in New Jersey

In contrast to New York’s population decline, several New Jersey counties are gaining residents. Monmouth, Morris, Middlesex, and Ocean counties have become attractive destinations for those seeking a combination of suburban living, affordability, and proximity to major metropolitan areas. This growth is driven by a variety of factors, including a desire for more space, better cost-of-living dynamics, and easier access to natural amenities like the Jersey Shore.

Monmouth and Ocean counties, in particular, are benefiting from people moving away from New York City. These areas offer more affordable housing, larger properties, and a desirable coastal lifestyle. Meanwhile, Morris and Middlesex counties attract professionals due to their proximity to job markets in both New York and New Jersey, as well as excellent school systems and amenities.

What Does This Mean for Buyers and Sellers?

For buyers, growing counties like Monmouth and Ocean offer exciting opportunities to invest in areas where demand is increasing. Properties in these counties are likely to see appreciation as more people move in, making them solid long-term investments. Buyers can also enjoy a higher quality of life with more space, access to nature, and lower property taxes compared to some areas in New York.

For sellers, this influx of new residents translates into increased demand, potentially leading to faster sales and stronger sale prices. Understanding which counties are attracting new residents and why can help sellers capitalize on the demand surge, whether by strategically pricing their homes or timing their sales to maximize value.

How Real Estate Agents Help Navigate These Trends

Real estate agents play a key role in helping clients interpret population shifts and market trajectories. When advising buyers looking to invest, agents can highlight growing areas like Middlesex or Monmouth counties, where property values are likely to rise due to increased demand. Sellers in these areas can also benefit from agents’ insights into local market conditions, helping them understand how population growth can boost their chances of a successful sale.

On the flip side, agents can also assist buyers or sellers in shrinking markets, like those in New York, where population decline may soften demand. By keeping a close watch on both growing and shrinking markets, real estate agents provide clients with critical context, enabling them to make smarter, more profitable decisions.

New Jersey's Market Opportunity

New Jersey’s population growth, particularly in suburban and coastal counties, presents an incredible opportunity for real estate professionals. With many New York residents crossing the river in search of more affordable living, New Jersey’s housing market is poised for continued expansion. Agents who stay informed about these trends can offer clients unparalleled value, whether they’re looking to invest, relocate, or sell.

In today’s real estate landscape, the ability to interpret market trajectories and population movements is more important than ever. As a trusted advisor, a skilled agent can help clients navigate these complexities, ensuring their real estate decisions are grounded in data and insight. With counties like Monmouth, Morris, Middlesex, and Ocean seeing steady growth, New Jersey is becoming a hotbed for real estate opportunities, and the agents who understand this shift will be in the best position to help their clients succeed.

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The Housing Market: Taking a Turn for Good

by: Anthony DiMaio

The Housing Issue

What can be expected if the Federal Government becomes an advocate for the middle-class home buyer?

The Federal Government could do 3 things immediately:

They could drive down the cost of lumber.

They could begin drilling for oil.

They could legislatively limit Wall Street’s appetite for single-family homes.

There are most people -- You know who they are -- They are the ones who think that mortgage rates are the rudder to this housing conundrum. But it's not JUST mortgage rates, but rather unaffordable building that is the elephant in the room. What we are expecting in this housing market, the corrections necessary, that the new administration 'could put into effect' are the following:

Eliminate the egregious tax that was placed on lumber coming from Canada. The price of lumber in the United States fluctuated widely over the last five years, from a low of $240 per 1,000 board feet in January 2016 to a peak of over $1,500 in April 2021. Currently the cost is $565 per 1,000 board feet. That too is still high!

And now we need to open up the oil pipelines. Re-open the Keystone Pipeline. The decision to close down the Keystone Pipeline was an act of war against America’s middle-class families. It was a cancerous tax on everything including food, clothing and shelter. It also had an impact on the overall cost of transportation.

The cost for a brand-new Honda Accord in 2019 was about $24,000 list price. In 2024 that price is $29,000 and more.

And finally, we need to limit the number of single-family homes that are bought by Wall Street. By 2022, investors accounted for nearly 30% of sales of single-family homes, up from an average of 16% just three years earlier. In some cities, institutional investors account for a far higher share of single-family homes.

New Jersey homeowners are holding their breath as they wait for mortgage rates to respond to recent Fed interest rate cuts. Even after a cut in September and another smaller reduction yesterday, the average rate for a 30-year fixed mortgage remains high -- above 6%, according to Freddie Mac. This is a stark contrast to the pre-pandemic rate of around 4% that many New Jersey residents enjoyed, putting a strain on both buyers and those looking to refinance.

In the past five weeks, mortgage rates have jumped 67 basis points, marking the sharpest rise in two years, per the Mortgage Bankers Association. This increase is creating a bottleneck in the New Jersey housing market, where home prices are already high, and affordability is a significant concern.

So, is it a seller’s or a buyer’s market in New Jersey? At this point, it’s neither. The high rates are putting both sellers and buyers in a holding pattern, with limited movement in the market. And for New Jersey homeowners hoping to refinance at lower rates, patience is essential.

So, it is possible that as building supply costs drop, we can hope that housing supply will open up.

The final issue that should be addressed is the real estate taxes in New Jersey.

High New Jersey Real Estate Taxes

Until the state gets a wake-up call to lower their budgets, residents will continue to flee the Garden State because of the tax-fare against homeowners. Presently, New Jersey has the highest effective property tax rate in the U.S. at 2.23%. The median property tax bill there last year was nearly $9,000.

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States with the Highest Median Prices

by: Anthony DiMaio

Everyone knows buying a house these days is a very big thing. The range of prices for homes across the 50 states can vary by as much as $500,000.

Here is a list of the states with the most expensive median prices:

Hawaii $852K

California $776K

Massachusetts $640K

Washington $610K

Colorado $561K

New Jersey $524K

Utah $530K

Oregon $511K

New Hampshire $500K

Rhode Island $488K

New York $476K

Nevada $446K

Maryland $437K

Vermont $411K

Florida $405K

Connecticut $404K

Delaware $400K

These prices are provided by ATTOM for August 2024.

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About Counsellors Title Agency

We are an award-winning agency and one of New Jersey's leading title insurance businesses, based in Toms River. Counsellors is known for its team of knowledgeable service professionals recognized for its exceptional title, settlement and escrow services, for all 21 New Jersey counties. Its glitch-free signature service provides confidence to home buyers, sellers, and industry professionals. The knowledge base of its staff has processed over $17 billion in orders and established itself as a pillar of trust and benchmark of excellence within the real estate community.