Jersey City 2Q 2020 condo market update
In 2Q 2020 the number of sales in downtown Jersey City dropped 41% and the median price fell by 2%.
During the coronavirus stay-at-home orders, both the number of sellers selling homes and buyers actively looking for homes fell by almost half, compared to the same time last year. In New Jersey, buyers were allowed to view homes with PPE and social distancing. Whereas in New York, in person showings were banned, leading to a sharp fall in Manhattan prices – number of sales dropped by 54% (2Q2020 vs. 2Q2019) and median prices fell by $1 million.
Downtown Jersey City fared better compared to Manhattan though- Second Quarter 2020 number of sales fell by 41% compared to same time last year (see table on the next page). This drop interrupted an upward trend in Jan & Feb, the First Quarter numbers went up compared to fourth Quarter 2019; indicating that without the Coronavirus, the number of sales and prices would’ve been up.
The median prices and price per square feet is holding steady, dropping by 2%, compared to the same time last year(see table on the full report). Two-bedroom prices dropped more compared to one-bedroom units. Three bedrooms prices are up.
Days on market are lower this quarter compared to same time last year and last quarter, indicating units are selling quickly.
We noticed an exodus to the suburbs, suggested by the increased number of rental listings in the area.
We believe the lower interest rate (3.07 average for a 30-yr-fixed now compared to 3.85 same time last year) coupled with the pent up demand from buyers who were unwilling to view properties because of the coronavirus, and low inventory will fuel sales in the next quarter.
If you want to read the full market report, download below.