Dear Ralph,

We have all heard the phrase, Follow the money! Well, with a number of recent NYC sales and NJ developments, it is clear Kushner is moving their chips to the Garden State. And now with the recent tropical storms, there is a softness in the market with new listings surging nearly 70%. And New Jersey continues to see its own median list prices climb.

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.



Monmouth County Median Listed Prices Hits New Record

by Anthony DiMaio

National Home Price Trends 

As a title insurance agency serving New Jersey, we closely monitor housing market trends to help homeowners and buyers stay informed about property values, market dynamics, and external factors like inflation and mortgage rates, which have significant effects on the real estate landscape.



In Monmouth County, the median home listing price reached $846,950 in September 2024, reflecting a 2.7% increase from the previous month’s $824,945, according to Realtor.com data. Year-over-year, this represents a 6% increase from September 2023, when the median was $799,000. While this upward trend shows a strong market, external pressures such as inflation and mortgage rates are shaping the trajectory of these prices heading into 2025.

Impact of Inflation and Mortgage Rates

Inflation continues to play a crucial role in housing costs. Rising prices for goods, services, and construction materials have increased the overall cost of homeownership, pushing up both home values and rental rates. Inflation pressures are also felt through mortgage rates, as the Federal Reserve responds by raising interest rates to curb inflation. Higher mortgage rates have had a dampening effect on some segments of the housing market, as borrowing becomes more expensive, leading some buyers to delay purchases or reduce their budget expectations.

Mortgage rates in 2024 have remained higher than the previous few years, a trend expected to continue into 2025. These higher rates directly impact affordability, driving up the cost of monthly payments for new buyers. As a result, some areas may experience slower price growth or even declines as demand adjusts to these conditions. For example, while Monmouth County's housing market has seen a steady rise in listing prices, there could be price moderation as affordability challenges weigh on buyers.

Monmouth County Market Overview

Despite these economic factors, Monmouth County’s housing market has remained resilient. In September 2024, the median home listed for sale was 2,100 square feet, priced at $378 per square foot—a 0.2% increase over the prior year. Homes in the area are selling relatively quickly, with a median of 46 days on the market, still faster than the national median of 55 days. This suggests continued demand, even in a challenging borrowing environment. New listings in Monmouth County also saw a significant increase, with 736 new homes hitting the market in September, up 12.2% from 656 in September 2023. This rise in inventory could offer more opportunities for buyers, potentially tempering price growth as supply catches up with demand.

Regional and National Comparisons

Looking at the broader New York-Newark-Jersey City metro area, median home prices rose to $764,000, with homes averaging 1,567 square feet at $523 per square foot. In New Jersey as a whole, the median home price was $580,000, down slightly from August 2024. These homes averaged 1,733 square feet, listed at $306 per square foot. Nationally, median home prices dipped slightly to $425,000, with homes averaging 1,843 square feet at $227 per square foot.

Looking Ahead to 2025

As we move into 2025, we expect inflationary pressures and mortgage rates to continue shaping housing market conditions. While Monmouth County has experienced solid price growth in 2024, these external factors may moderate the pace of appreciation, as affordability challenges could limit the number of potential buyers. For sellers, this means realistic pricing will become increasingly important, while buyers may find more negotiating power as inventory rises and demand adjusts.

Understanding these market trends is essential for both homeowners and prospective buyers, and we remain committed to providing comprehensive title insurance services to protect your property investments in this evolving market. 

Impact of Mortgage Rates 

Falling mortgage rates, spurred by the Federal Reserve's 50-basis point interest rate cut, have further fueled home prices. With mortgage rates reaching 24-month lows, the potential for continued growth remains as first-time buyers take advantage of lower borrowing costs. Experts suggest that further rate cuts could maintain momentum in the housing market.

However, even with rising prices, the rate of growth is slowing, which could provide some relief for potential buyers. According to the National Association of Realtors (NAR), existing home sales in August fell by 2.5% compared to July, and were down 4.2% year-over-year.

New Jersey Real Estate Market Snapshot 

In New Jersey, the real estate market has been similarly affected by rising prices and fluctuating demand. Home prices in the state increased by 6.4% year-over-year in July 2024, and 6.3% in August. These figures slightly outpaced the national average. Areas like Jersey City and Hoboken have seen robust price growth due to their proximity to New York City and continued demand from buyers looking for suburban alternatives to the city. Additionally, South Jersey has benefited from increased interest in coastal properties, as more people seek vacation homes or investment properties.

Despite the price hikes, New Jersey's market is stabilizing, with increased housing inventory helping to moderate growth rates. Experts predict that price appreciation may slow down further in the coming months, especially as mortgage rates fluctuate and economic uncertainties impact buyer behavior.

Federal Reserve’s Desperate Cut 

The Federal Reserve’s rate cut in July was larger than anticipated, a move many analysts attribute to upcoming elections and economic concerns. This cut helped refinance applications surge by 20% in one week, with demand skyrocketing 175% compared to the same week in 2023, according to the Mortgage Bankers Association. Buyers are taking advantage of these lower rates to lock in financing amid uncertain market conditions.

Summary 

While U.S. home prices continue to rise, the rate of growth is beginning to slow. The Northeast, especially New York and New Jersey, remains a hot market, but factors like falling mortgage rates and increased inventory may signal more balanced conditions ahead. Potential buyers and investors should monitor trends closely as the market continues to evolve in the coming months.

The Kushner Company Turns Toward New Jersey

by: Anthony DiMaio

As both real estate agents and attorneys serving the Garden State, it’s crucial to stay informed about major market shifts that could impact our business. Today, I want to discuss a significant development that could spell substantial opportunities for our real estate landscape: Kushner Companies’ strategic pivot from New York City to New Jersey.

The NYC Exodus

Kushner Companies recently sold another substantial East Village portfolio for $38 million, continuing their pattern of divesting from New York City properties. This latest sale included:

– Four contiguous properties on East 9th Street (329-335) with 64 walk-up units, selling for $26.9 million

– Two additional buildings on East 13th Street (516 and 518), fetching $11 million

– Total transaction: 56 residential units and 6 retail spaces

Why This Matters to NJ Real Estate Professionals

1. Follow the Money: Kushner Companies has secured:

– $1 billion in construction financing for NJ projects

– A $295 million construction loan for a Jersey City development

2. Market Indicator: This pivot suggests that sophisticated investors see more upside potential in New Jersey compared to New York City.

Key Growth Areas to Watch

Monmouth County

For agents and attorneys operating in Central Jersey, pay particular attention to:

– Monmouth Mall redevelopment

● Demolition of former Lord & Taylor and JCPenney spaces

●New construction planned

– Netflix Studios at Fort Monmouth

● Expected to create 10,000 new jobs

● Potential for significant housing demand increase

Action Items for Real Estate Professionals

For Agents:

1. Develop relationships with relocation specialists

2. Focus marketing efforts on NYC commuters looking for better value

3. Familiarize yourself with new development projects to advise clients effectively

For Attorneys:

1. Prepare for increased transaction volume

2. Brush up on commercial real estate law, particularly regarding new developments

3. Consider forming relationships with NYC firms for referral opportunities

Legal Considerations

For our attorney colleagues:

– Review zoning changes in developing areas

– Be prepared for an uptick in commercial lease reviews

– Stay current on any regulatory changes affecting foreign investment in NJ real estate

Looking Ahead

As New Jersey real estate professionals, we should:

1. Monitor Kushner Companies’ moves for market insights

2. Prepare for increased demand, particularly in:

– Monmouth County

– Jersey City

– Areas within commuting distance to NYC

3. Consider how the Netflix development might impact surrounding areas

Final Thoughts

This strategic shift by a major player like Kushner Companies validates what many of us have long known: New Jersey offers tremendous value and opportunity. As the market evolves, staying informed and prepared will be key to serving our clients effectively.

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Recent Storms Making Florida the Run-From State

by: Anthony DiMaio

Florida’s Rising Costs and Insurance Woes Are Driving Homeowners to Consider Other Markets

Florida had the highest net migration increase of all states in 2022, gaining a net population of 249,064 people.

In 2023, the top 3 cities people moved to in Florida were Palm Bay-Melbourne, Ocala and Sarasota-Bradenton.

​​Florida recorded an 86% net gain in new businesses in 2023.

• Florida continues to have a reputation as the best place to live and work, which attracts new residents. Florida has seen gains in population over the last 5 years from states like New York, New Jersey, and Illinois.
• In the last 5 years, 250,253 people have moved from New York to Florida, and 117,418 people have moved from New Jersey to Florida.
• But now, with the recent increase in tropical storms, such moves are being reconsidered.
• The Gulf of Mexico and Caribbean have become hotbeds for powerful storms, and the increasing frequency of hurricanes is leading to rising home insurance and flood insurance costs in Florida. As Floridians grapple with escalating expenses, many are reconsidering whether the Sunshine State is still the affordable paradise it once promised to be.

The high cost of living, coupled with record-breaking inflation and a volatile real estate market, is pushing some residents to explore alternatives, and markets like New Jersey could become an appealing option.

For decades, Florida has attracted retirees and others seeking sunny, affordable waterfront living. However, the onslaught of climate disasters and skyrocketing insurance premiums are now undermining that appeal. Just recently, millions were left without power as the state began assessing the widespread damage left by a devastating storm. The financial toll of such disasters, coupled with ongoing inflation, has led many homeowners to reach a breaking point.

Between 2021 and 2023, Florida’s population grew faster than almost any other state, largely driven by the flexibility of remote work, attractive tax policies, and a booming job market. But the pace of migration to Florida appears to be slowing, and some signals suggest a shift is underway. According to an analysis of driver-license exchanges by Brad O’Connor, chief economist at Florida Realtors, the number of people moving to Florida surged 41% higher in the first half of 2022 compared to pre-pandemic levels. However, in the first half of 2023, the number had leveled out, showing just a 12% increase over 2019, signaling that Florida’s allure may be fading.

Experts have predicted that Florida’s population growth will slow further in 2024. In fact, a report from the Florida Chamber of Commerce noted that more people are beginning to migrate to states like Georgia, North Carolina, and Tennessee, where the cost of living is lower, and some still offer the benefit of no state income tax. For many, the consistent rise in property values, coupled with unaffordable home insurance, has made living in Florida increasingly untenable.

In contrast, regions like New Jersey, where natural disasters pose less of a regular threat, are becoming more attractive. Although New Jersey has its own real estate challenges, its coastal regions and suburban areas could become an appealing alternative for those fleeing Florida’s increasingly uncertain landscape. With more stable insurance markets and fewer climate-related risks, New Jersey offers a level of security that Floridians may no longer find in their home state.

Despite these challenges, many coastal Florida residents are determined to stay, unwilling to part with the lifestyle they’ve built or the allure of waterfront living. However, as costs continue to soar, and hurricanes and insurance premiums show no signs of slowing down, the decision to stay could become more difficult for many. And as the Florida housing market begins to sputter, New Jersey could stand to gain a wave of new residents seeking stability in a turbulent world.

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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.