Gold Coast rush: NJ markets pick up in third quarter

TRD analysis shows increased deals

Tri-State /
Nov.November 11, 2020 07:30 AM
Jersey City

Jersey City

Over the summer, Renee Condon, head of Keller Williams’ Jersey City office, watched as New Yorkers bypassed her market for more suburban neighborhoods. But she has seen that pattern shift in recent months.

“We are still the great alternative with cheaper price points to New York,” she said. “I’m selling brownstones at the same price point as a two-bedroom in Tribeca.”

Downtown Jersey City and other areas along New Jersey’s side of the Hudson River, collectively dubbed the Gold Coast, saw an uptick in home sales from the second quarter to the third quarter of this year, according to an analysis by The Real Deal.

That increase coincided with the lifting of Covid-19 restrictions and a gradual return to in-person showings. Condon said she is seeing “market fatigue” after buyers flocked to the suburbs, saying some clients have opted to upgrade within their Gold Coast neighborhood after being repeatedly outbid in Montclair and other suburban towns.

Overall, the number of individual home sales, as well as the total dollar volume of those deals, was lower in Jersey City, throughout Hudson County and in nearby Bergen County towns in the third quarter than during the same time last year. But the median price of those deals rose throughout Jersey City.

Bergen Lafayette, a neighborhood that has seen increased development over the last few years, stoking concerns of gentrification, experienced the largest year-over-year increase in median price at $477,500, up 24 percent. At 32 deals, however, the area had roughly half the number of sales recorded the same time last year.

Journal Square, where massive residential towers have sprouted up around the PATH train, had the second largest increase, with the median sale price rising 20 percent to $442,500. Condon, who was the broker on one of the quarter’s most expensive deals, a single-family home in Hoboken, noted that much of the residential stock in Journal Square is rental, so investment properties and single-family homes are in high demand.

Overall, Hoboken recorded the most deals at 214, which totaled $180.4 million. Downtown Jersey City followed with 151 deals, collectively valued at $131.6 million.

The tiny town of Guttenberg — which spans less than half of a square mile — was the only municipality where both the number and the dollar volume of deals increased year-over-year. In the third quarter, there were 43 sales totalling $17.7 million, up 13.2 percent and 14.6 percent year-over-year, respectively.

Grace Tan, an agent with Prominent Properties Sotheby’s International Realty, said there has been increased interest in towns farther from the waterfront as commuting patterns of renters and buyers shifts away from a daily bus, train or ferry ride into the city.

“The first place they see is Hoboken and Jersey City,” she said, referring to New York transplants. Many are looking to more affordable options, including Union City, West New York, Bayonne, Weehawkan and other nearby towns, she said.





    Related Articles

    arrow_forward_ios
    Mayor Steven Fulop (Getty, iStock)
    Jersey City to provide up to $10K more rent relief per tenant
    Jersey City to provide up to $10K more rent relief per tenant
    Sciame Construction CEO Frank Sciame and the Gold Coast Mansion
    Frank Sciame buys massive Gold Coast mansion. Now what?
    Frank Sciame buys massive Gold Coast mansion. Now what?
    The estate in Cove Neck with Tatum O’Neal and John McEnroe (The Pesce & Lanzillotta Team, Getty)
    Former Gold Coast estate of John McEnroe, Tatum O’Neal hits market
    Former Gold Coast estate of John McEnroe, Tatum O’Neal hits market
    Mayor Steven Fulop (Getty, iStock)
    Jersey City mulls stricter building inspections after Surfside collapse
    Jersey City mulls stricter building inspections after Surfside collapse
    1432 North State Parkway in the Gold Coast area (Realtor)
    “Webster” mansion in Chicago fetches $5.3M after 2 years on market
    “Webster” mansion in Chicago fetches $5.3M after 2 years on market
    Richard Lefrak and Jersey City (Getty, iStock)
    Neighbors ask Jersey City to change LeFrak’s five-tower project
    Neighbors ask Jersey City to change LeFrak’s five-tower project
    Loew’s Theatre in Jersey City (Google Maps)
    Loew’s Theatre in Jersey City set for $72M rehab
    Loew’s Theatre in Jersey City set for $72M rehab
    Photos courtesy of HAP Investments
    HAP Investments unveils new plans for Jersey City high-rise
    HAP Investments unveils new plans for Jersey City high-rise
    arrow_forward_ios

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

    Loading...