Edgewater Real Estate Market Prices, Trends, and Forecast 2023

Edgewater Real Estate Market Prices, Trends, and Forecast 2023

Located on the Hudson River, Edgewater’s rich history dates back to the Revolutionary War and the Industrial Revolution, which ultimately created the highly desirable and charming residential community seen today. Residents enjoy the local beaches and the spectacular views of New York City from the Hudson River Waterfront Walkway. The 18.5-mile multipurpose paved trail attracts outdoor enthusiasts of all levels and begins at Bayonne and ends at the George Washington Bridge near Fort Lee.

Water sports enthusiasts love the easy access to the Hudson River for kayaking, boating, hydro biking, sailing, swimming, and more. After your adventure, sample one of the many restaurants along the waterfront to relax and refuel. With the fantastic scenery, upscale restaurants and shopping, and plenty of entertainment options, it is easy to see why the Edgewater real estate market continues to grow in popularity.

Housing prognosis for 2023

Below are some statistics outlining the housing market forecast for 2023 for Edgewater. We will explore home values, interest rates, and investing indicators.

Value of homes in Edgewater

The value of Edgewater, New Jersey, homes for sale has fluctuated over the last year. In the past year, 271 homes have sold, with an average home price of $865,000. While the past twelve months have seen spikes in home prices, it has also included a few dips. For example, August, September, and November 2022 saw homes selling for over one million, while the rest of the year saw homes selling for under one million. From May 2022 to April 2023, the year-over-year average fell 12.1% from $970,000 to $865,000.

According to the National Association of Realtors, home sales nationwide did not change significantly in April. However, the Northeast did show a decrease in monthly gains, while three other regions in the country showed monthly improvements. The year-over-year sales declined across the country. Realtors often use the Pending Homes Sales Index to see the number of contract signings in an area. In April, the number remained steady at 78.9, while expected deals reduced by 20.3% year-over-year.

According to the National Association of Realtors Chief Economist Lawrence Yen, there are still inventory challenges throughout the country. Additionally, interest rates are affecting the affordability of homes, which is slowing the number of signed contracts. However, he cited inventory concerns as the primary reason the real estate market is in its current state. These trends have also affected the value of homes in Edgewater.

The latest status on interest rates

As of June 1, mortgage rates continue to increase. For a 30-year fixed-rate mortgage, the rate rose from 6.39% to 6.79%. As mortgage rates increase to 7%, Americans are becoming less inclined to move, keeping the country’s housing inventory extremely tight. While fewer buyers are attempting to purchase a home, prices are trending to sell above the list price since there are still too many interested buyers for the number of homes available.

Hopefully, the rates will decrease in the coming weeks, thanks to several government initiatives. The Federal Reserve may temporarily pause interest rate hikes in June. While the activities of the government do not directly impact mortgage rates, they do impact the economy overall and, therefore, indirectly affect mortgage rates.

How are landlords affected by the 2023 market forecast?

Real estate remains attractive, assuming interest rates do not detract potential buyers from taking the plunge. Most non-cash investors will purchase properties once interest rates decrease or property values decline. Neither of those factors is currently occurring, so the market appears static.

Americans, in general, are living differently than they have in the past. For instance, the work-from-home trend continued long after the pandemic peaked, and there has been a steady increase in the need for easily accessible technology from home. Current landlords who stay ahead of the trends may need to increase rents as the cost of living increases and inflation continues to affect the cost of goods and services in the country.

Population migration affecting Edgewater

From July 1, 2021, to July 1, 2022, the United States Census Bureau shows a population decline of 6,250 New Jersey residents. Residents continue to leave New Jersey and relocate to other states such as Texas, Florida, North Carlina, and South Carolina. Bergen County, including Edgewater, experienced a net loss of approximately 3,350 people. These statistics equate to more than three times the number over the previous two years. Many New Jersey residents are leaving large metropolitan centers due to affordability and the desire to live in an area with a smaller population.

COVID-19 is still affecting the real estate market

The housing inventory available in Edgewater and across the country continues to be low. From 2012 to 2021, the United States created over 12 million households. Simultaneously, United States builders constructed just seven million single-family homes during that period, leading to a significant increase in housing demand.

The United States was already experiencing a slight housing crisis prior to the start of the pandemic. However, the country’s housing situation worsened once the pandemic occurred, and supply chain issues became problematic. Between the increase in demand and higher prices for homes, bidding wars continue to be the norm in Edgewater’s current real estate market.

Taking the next step for potential sellers and buyers

While the national real estate market continues to change and fluctuate, Edgewater remains a highly desirable area to live in, thanks to the incredible amenities this charming locale offers.

If you’re interested in looking at Edgewater condominiums for sale, contact real estate professional Jason Pierce. His attention to detail and dedication to providing his clients with a top-notch real estate experience will ensure you make the best decision for you and your family. Allow his negotiation skills, market expertise, and knowledge of the area to help you buy or sell a home in Edgewater.

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