The July 2018 Downtown Jersey City Condo Market Update

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: