Exclusive Feedback from Mr.Smart
What’s ahead for 2020? Ask Mr. SMART
There are several factors affecting the real estate market in NJ on Hudson and elsewhere.
In the big picture these factors include historically low interest rates, a strong economy with low unemployment, a booming stock market which leaves people with more money feeling richer.
However, the new tax code where State and local taxes are capped at $10,000 makes ownership less affordable despite the low interest rates and the good economy.
The “NJ Gold Coast” has seen much development along River Road, Port Imperial Drive and Lincoln Harbor bringing the aspect of supply vs demand into play.
There is an abundance of new luxury rental buildings with condo type finishes and more on the way.
Hartz and Roseland are continuing to build up the luxury waterfront rental market along the banks of the Hudson in Port Imperial and Lincoln Harbor.
The amenities in these buildings are comparable to new condominiums.
New condominium construction during the past 7 years has been booming.
The remaining inventory above $1,000,000 is in abundance while re-sales are in short supply.
In many buildings concessions are being offered to lower the net effective rent while new condo prices have been reduced due to the recent building over the past years.
Although this appears the right time to get a bargain since price reductions are currently in effect and or concessions being given there is the choice like never before between renting and purchasing.
If you are purchasing consider these three factors: Price, Schools and Tax Rate.
Neighborhood, safety, transportation, proximity to family, walkability to stores, shops and restaurants and others also matter.
You may want to look at the new Hartz (800 Harbor Blvd.) and Roseland buildings (The Capstone) before buying.
However, historically low interest rates are tough to resist.
Here's the bottom line:
If the new sales and rentals can be absorbed then you can expect modest price increases.
If absorption is slow, then prices may decline slightly until absorbed.
Regardless, this is a great time to lock in with the low interest rates if you want to buy
at the right price and live in the property for at least 3 years.
Look forward to updating you on the market in our next Newsletter.
Mr. Smart - Lennard Charles