For those who’ve been following the blog, you’re well aware of the tax revaluation’s impact on downtown Jersey City.  Plain and simple it is a disruptive force that is shifting market dynamics.  Inventory is 2.5X what it was this time last year, and despite this, sales and deposits accepted by owner are down 20%.  Add in federal tax reform and rising interest rates and it’s now solidly a buyer’s market for condos in Downtown Jersey City.  Pricing is off 5% year-over-year, and owners are just now beginning to pay the increased tax rate.  Single families, tax abated properties, and condos with high-end finishes are still doing pretty well as they’re limited in supply and particularly appealing to buyers, but many of the condos with 8-10 year old renovations are feeling dated and the market is soft and getting softer for these properties.  Hoboken saw a similar, albeit less dramatic spike in inventory, but has since leveled off – time will tell if (and at how much of a discount it will take to) begin to absorb the excess inventory, It’ll be interesting to see what happens when large non-tax abated properties (e.g. 99 Hudson) flood the market with inventory.   Checkout our full market recap on our video blog below: