New Jersey home prices are consecutively increasing ever since the housing recovery began.
According to an Otteau Valuation Group Inc. report, this is due in part to an increase in the demand to buy a house combined with a tight inventory of available houses for purchase.
The median home price in New Jersey increased to $287,480 in quarter four, up slightly over $10,000 from last year. At the same time, the amount of houses available for sale remains low with a decline of 1,800 homes (-4 percent) over the past year and more than 30,000 (-41 percent) homes since inventory peaked in 2011, the release said.
After two consecutive quarters of declining housing affordability for buyers due to the high cost of homes coupled with the rise in mortgage interest rates, the affordability of ownership in the Garden State rose once again in quarter four.
The affordability index rose 120 percent, similar to levels back in 2013. According to the findings, this means that a home buyer today earning the state's median income of $69,667 is able to afford a home that is priced 20 percent higher than the state's median home value of $287,480.
The findings suggest a recovery in home prices has occurred in northern parts of the state however, southern parts continue to see a much slower recovery.
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