It’s another sign of recovery for the housing market: home construction in New Jersey is up 45 percent compared to last year. Nearly 9,000 housing permits were issued in the past five months; last year’s numbers were just around 6,000. And, with reasonable home prices and low interest rates, buyers aren’t afraid to buy. They know that their clock is running down, and they’re ready to take the plunge and invest in a home to get the best rates before they’re gone.
The majority of housing permits were for multi-family construction, which is growing in demand. These homes are cost-effective, easy to maintain and offer plenty of space, and they are good for growing families or those looking to downsize. This makes up a lot of New Jersey buyers at this time, especially as there is more spillover from the New York City market.
People who are used to living in small apartments in the heart of the city find it more difficult to spring for the large home in New Jersey. With jobs being less secure than in years past, people want to remain close the city. That’s where new multi-family homes become the perfect solution; they are a nice upgrade for urban dwellers and packed with new amenities and they still keep a reasonable price tag.
Single-family builds are also on the rise and will serve as great housing for families that may have more job stability and want to move a bit farther out from NYC. The fact that new home construction is up nearly 50 percent from last year is exciting, and it’s definitely what the NJ market needs to grow. With more sales comes more stability, and homeowners who have been waiting out the market may finally have their opportunity to sell. They may still have to take a loss, but it won’t be nearly as bad as last year.
The housing market is unpredictable as we’ve learned, but both buyers and sellers have more opportunities at their fingertips than ever before. With more new construction, there will be a better inventory for homebuyers, coupled with historically low interest rates and reasonable housing prices. Sellers are watching their homes get bid on quickly, and if they can sell without taking too big of a loss, they too can take advantage of a great time to buy.