Like many place in the United States, the price of real estate has sky rocketed in the last few years. The combination of low mortgage prices, prime location, and rapid development has made a surprisingly sleepy real estate market come to life in a hurry. Though the local market started to slow down in 2007, the more interesting question is what will happen next.
Jersey City 15 years ago
15 years ago, Jersey City was surprisingly undeveloped. Most areas of the city were unsafe, and what should have been an extremely valuable area was very undeveloped. Large parking lots took up much of the area around the waterfront, and the city was not safe to be in during the night. Few of the skyscrapers that exist now were around then. Much of the buildings in Jersey City represented the areas roots as a manufacturing and shipping town. Land was very cheap, and you could buy brownstones in need of rehab in the Paulus Hook area for $100,000. Many areas were heavily polluted and unsuitable for development https://luxurylifehomes.com.
Jersey City 10 years ago
10 years ago is when Jersey City really started to come in its own. The city really started to put an effort into development, and construction on the Light Rail began. Massive development in the Newport area really started to talk off, and property values steadily increased. The waterfront area became safer, but the interior of Jersey City was still spotty at best. Commercial development really took off along the waterfront.
Jersey City 5 years ago
5 years ago, developers began to really understand the values of the Jersey City waterfront. Projects like Liberty Towers and The Pier were stated. The values of property began to skyrocket as the housing boom began in earnest. The Light Rail was nearing completion, allowing areas of Jersey City beyond the reach of the PATH to develop. New developments sold out nearly as quickly as they opened their sales office. It was truly a great time to own Real Estate in Jersey City. Average real estate prices for 1 bedroom apartments peaks at over $500 sqft.
Jersey City now
Though it took a while to see the impact of the housing bubble collapse, it has finally occurred. The average price per square foot for a 1br apartment in Hudson County is down to $435. The average selling time for an apartment is up, and the buyers have a lot more power in the negotiating process. Though 1 bedroom apartments still sell eventually, the market for 2 bedroom apartments has slowed dramatically. People who price their apartments aggressively are still able to sell, but some people are still expecting the valuations of early 2007. As a result, it is not uncommon to see 2 like apartments in a building selling for over $100,000 difference in price (and neither one selling).