With the price drops in recent months, the NJ housing market is cooling. The prices are further expected to go down through 2023. The lower prices and less demand from buyers are due to the combination of sky-high prices and rising interest rates throughout 2020 to early 2022. But New Jersey is still the best place for living with its closer proximity to major urban areas, high standard of living, and top-notch schools. Let’s explore more about it.
COST OF THE HOUSES IN NEW JERSEY
In New Jersey, the average price of a home is $471,472 but it varies from area to area, for instance, the median home price in Edgewater is over $600,000, in Hightstown it’s around $370,000, and in Trenton it is just under $275,000 and the lowest in Atlantic City around $185,000. If you are closer to New York or Philadelphia the prices are going to be higher. Expect a value of $400,000-$500,000 for the average home. The best time to buy a house is between April and June but if you are looking for discounted prices, those months are not suitable. Prices tend to be lowest in January as the real estate market is not that active in the winter season. Also, mortgage rates are lower in December so if you are thinking to go on a budget, now you know when you tap into the house search market.
IT ISN’T OVER YET!
In New Jersey, a down payment for a home typically costs $29,500. The typical down payment for borrowers nationwide is 12%, even though banks frequently advise homeowners to make a 20% down payment to avoid private mortgage insurance. For qualified borrowers, VA and USDA loans offer zero percent down mortgages, while some government loan programs, including FHA loans, allow applicants to receive a loan with as little as 3.5% down. However, depending on the amount of the home loan you’re attempting to secure, people planning to use a conventional loan should strive to save up to about $30,000 for a down payment.
Now, how much salary do you need to buy a house in NJ? Well, it depends on the loan size and the requirements of the lender. As per the experts, you should not spend for than 28% of your salary on housing expenses. Currently, the average interest rate for a 30-year-old fixed rate loan in NJ is around 7% so your monthly payment is just around 3000 per month meaning your income should be about $125000 to afford the loan.
HOW CAN WE BUY HOMES MONSTER HELP YOU?
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