The Real Reason North Jersey Home Prices Keep Rising

By William “Bill” Boswell

Bill is widely known as one of New Jersey’s most sought after real estate agents and is a sales associate of Keller Williams Prosperity Realty.

For the last couple of years, I’ve heard the same prediction on repeat. “The market’s going to crash, Bill.” Prices have to come down. People simply can’t afford these numbers anymore.

I’ve gone on the record fearlessly, repeatedly, and without hesitation, saying the opposite. In New Jersey and most of the Northeast, pricing is going to continue to rise. And the data I’m working with isn’t some secret. It’s actually very simple. Supply is very low. Demand is very high.

Affordability isn’t the real driver. Supply and demand are. The argument I keep hearing goes like this: prices have risen so much that people can’t afford them, so demand has to fall, so prices have to follow. It sounds reasonable, but it misses the point. Affordability is a factor in demand. When prices rise, and buying power doesn’t keep up, some buyers step back. That’s real. But affordability doesn’t drive home pricing. Supply and demand do. Those are two different things, and most people are confusing them.

As long as more than one person wants the one house that’s there, the price is going up. It doesn’t matter whether those buyers find the price comfortable. What matters is whether there is competition for that property. And in North Jersey, the imbalance between what’s available and how many people want to buy has stayed significant for a long time. The supply side hasn’t recovered to a level that meets demand, and until it does, the pricing pressure doesn’t let up.

The national headlines aren’t your market. It doesn’t matter what’s happening in Texas. It doesn’t matter what’s happening in Florida. Those are markets with completely different inventory conditions. What matters is what the supply and demand curve is saying right here, right now. And in North Jersey, that curve continues to point in one direction.

Until we see that change, there’s no conversation about this market crashing out. That I promise you.

If you want a clear picture of what the North Jersey market means for your specific situation, I’m happy to talk it through. Watch my video for the full argument. Call or text me at 973-224-4605, email northjerseyluxury@gmail.com, or visit blog.theomegarealestategroup.com. Your search ends here.