New Jersey Foreclosures: Opportunities in a Recovering Economy
Photo by Visualpanic
During July-August 2011, the prices for New Jersey foreclosures were decreasing statewide, while the prices for existing single-family homes were slightly higher resulting in flat prices for the market as a whole. On the employment front, the state gained a net of 1800 jobs, with 3900 private sector jobs added.
The New Jersey unemployment rate remains stubbornly high at 9.5 percent due to the loss of government sector jobs due to state budget cuts. The manufacturing sector continues to be a source of weakness in terms of jobs. Although New Jersey’s unemployment rate is higher than the national rate of 9.1%, it is moderated by the fact that many New Jersey residents find employment in New York.
There is hope for those seeking jobs in New Jersey: Governor Christie is promoting an initiative for business incubators and accelerators in the technology sector and the state is offering significant tax credits and funding opportunities for new businesses.
In terms of housing, several communities saw price increases in listed foreclosed properties.
* Paterson foreclosures increased in prices 14.61 percent in the period July through August. This upward trend is expected to collapse due to the extensive flooding and subsequent property damage caused by Hurricane Irene in late August.
* Clayton foreclosures prices increased 15.93 percent in the period July through August. Hurricane Irene caused less damage in this community than elsewhere in the state; thus, there is likely to be little impact on the real estate market.
* Bayonne foreclosures prices increased 19.8% percent in the period July through August. This community experienced limited flooding and some wind damage during Hurricane Irene, so there should be minimal impact on prices in this area.
Other communities experienced a decrease in prices for foreclosed homes.
* Elizabeth foreclosures decreased in price by 5.14 percent. Property in this area incurred minimal storm damage.
* Sicklerville foreclosures decreased in price by 5.3 percent. Minimal property damage occurred as the result of the storm.
* Irvington foreclosures decreased in price by 9.99 percent. This area experienced extensive flooding, thus it is likely there will be additional downward pressure on prices.
The news in New Jersey was dominated by the preparation for Hurricane Irene, as New Jersey is not a state usually affected by major hurricanes. The coastal areas of the state incurred less damage than anticipated as the storm significantly weakened as it approached the state.
Inland areas, especially along the Passaic River Basin and the Raritan River, experienced significant flooding because of the torrential rains; the market in these area is likely to be in a standstill for the next few months.
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