Perfect storm hits post-Sandy NJ housing market

New York /
Nov.November 29, 2012 11:30 AM

The after effects of Hurricane Sandy continue to reverberate around the tri-state area, but the already shaky New Jersey housing market may be feeling the worst of the storm’s economic effects, the Wall Street Journal reported. In the midst of falling prices and rising foreclosures, homeowners in the Garden State are deciding whether to keep their homes or move elsewhere, creating further uncertainty.

New Jersey has the second-highest foreclosure rate in the U.S. behind Florida, as The Real Deal has reported. Almost one in six homeowners across New Jersey owes more than their homes are worth, the Journal said. And Sandy could worsen things.

“Anybody who was about to buy a house and needed to get a mortgage, that is stopped in its tracks,” Dana Miller, an agent with Weichert Realtors in Rumson, N.J, told the Journal.

But the situation is not all bleak. Over the past ten years, hurricanes have given rise to a spike in mortgage delinquencies, but not foreclosures, as lenders have given victims some space and time to catch up on mortgage payments, sources told the Journal.

Plus, Miller said hurricane damage shouldn’t have an impact on property values in the long term because “the dumpiest houses will be built with new construction.” [WSJ]Zachary Kussin


Related Articles

arrow_forward_ios
A rendering of The Pinnacle (Kislak)
Luxury rental complex in Fort Lee sells for $55M
Luxury rental complex in Fort Lee sells for $55M
Gloria Gaynor (Getty, Douglas Elliman)
Gloria Gaynor lists longtime suburban NJ home
Gloria Gaynor lists longtime suburban NJ home
Progress Capital partner Brad Domenico and Broadacres Office Park (Photos via Progress Capital)
Bloomfield, NJ office complex sells for $52M
Bloomfield, NJ office complex sells for $52M
Asbury Park, New Jersey (iStock)
Asbury Park residents choose less stringent rent control
Asbury Park residents choose less stringent rent control
The Birch Group CEO Mark Meisner and Mack-Cali CEO Mahbod Nia with (clockwise from top left: 101, 103, 150 and 51 John F. Kennedy Parkway, Short Hills (Mack-Cali, Linkedin)
Mack-Cali sells Short Hills, NJ office portfolio for $255M
Mack-Cali sells Short Hills, NJ office portfolio for $255M
(Getty)
Different state, same problem: Office availbility soars in NJ
Different state, same problem: Office availbility soars in NJ
The effective rate was 1.1 percent, on average, in 2020, down from 1.14 percent in 2019. (iStock)
Homeowners’ property taxes grew twice as fast last year
Homeowners’ property taxes grew twice as fast last year
New Jersey Gov. Phil Murphy (Getty)
NJ order tapping security deposits to pay rent is back in court
NJ order tapping security deposits to pay rent is back in court
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...