Check out almost any other Real Estate site and they’ll try to make a balanced argument that it’s both a “great time to buy” and a “great time to sell” – it’s self-serving and almost never truly the case.   One thing that makes My Hoboken Home unique is our commitment to providing you with a clear and honest opinion of where the market is and where we see it heading.  Jersey City just released projections on the tax reval. and if you live in downtown JC, the projections aren’t pretty.  Paulus Hook is bearing the worst of it, a whopping 75% average increase (see attached).  Combine the reval with the recent tax legislation that caps the combined SALT property + income tax at $10k and we’re looking at a truly powerful and disruptive force that will most certainly impact downtown JC property values.  The good news is demand for well-priced downtown JC properties has remained strong in recent months.  If you’re thinking of selling in the next 5 years in downtown JC, I strongly believe that the next 2-3 months, before the market fully realizes the forces at play, are your best opportunity to cash-out on the rocketship growth that has occurred over the past few years.  To be clear, I think the fundamentals of wealth creation and GDP growth remain strong, so I’m not calling for a complete market collapse; however, barring any Amazon HQ2 to JC surprises, I think a 10-15% correction in values is quite likely in downtown JC.  Buyers beware – make sure you’re getting a price that reflects the risk you’re assuming – it’s a very dangerous time to buy in downtown JC at the moment.  The next 12-18 months are likely to bring better buying opportunities.

So, what does this mean for Hoboken?  Well, I see some possible spillover if supply in JC balloons; however, keep in mind, the Ernst & Young relocation to Hoboken is occurring this spring, so there’s a fairly solid counterbalance in place.  I see the market largely treading water, with the exception being potential bidding wars in the red-hot spring market for prime location, turn-key properties – these properties are often fetching North of $800/ft.  Value-oriented Hoboken buyers would be wise to look for more reasonably priced easy-fixers.  There are still some opportunities in the $600’s/ft range for those who are willing to do some work.

Jersey City 1-4 Family NBHD Analysis