Michael Dane said:
The downtown Jersey City bubble: Regardless of what local brokers or developers might say, downtown Jersey City (paulus hook, liberty north, exchange place) is currently an unsustainable, overheated market. This real estate bubble will shortly slow down and then let out some steam. So if you are looking to move there, my suggestion is rent for now, and buy when condo price increases stall starting in Q4 and then correct downward over 2015 and 2016. There is a glut of new rental developments approved for the area, bringing online over 5000 rental apartments. This will clearly drive down rents with an oversupply, which historically brings down condo prices. Why buy when renting a comparable apartment is dramatically cheaper per month factoring in maintenance, taxes and mortgage? Also, many of these new buildings will be built in places that dramatically impact the views of several high end condos, further driving down prices and comparables. Some of the major condos being affected are 77 Hudson, 88 Morgan and Gullscove. 77 Hudson has three buildings being build directly around it east, north and south. 88 Morgan has the URL 69 story towers going up directly east, blocking practically all of the direct Manhattan views. And Gullscove has several buildings including a new Marriott going up that will obstruct its south view. Foreigners, Manhattanites, NJ empty-nesters, that bought high end condos recently with wonderful views, will be greatly dismayed when they go to sell the same unit only now with no views. Then eventually the rentals will convert to condos affording better ownership pricing in better, newer buildings.