NJ City Among Top 10 For Home Price Increases Since Last Year

NEW JERSEY — Homebuyers across the country have to pull in six-figure incomes to purchase their dream house, according to the latest national survey from the National Association of Realtors.

And a New Jersey city was included among the 10 metro regions that saw the largest spike in home prices in the last year, with prices up more than 14 percent according to an NAR report earlier this month.

Nationwide, the median household income for homebuyers increased 22 percent over the past year from $88,000 to $107,000, according to the NAR 2023 Profile of Home Buyers and Sellers.

That is above the state's household median income of $96,346. And, the current average home price in New Jersey is $495,846 — an increase of 7.1 percent since last year — according to the most recently-available data from Zillow.

Newark was among the metro areas with the largest year-over-year price increases in the nation, as well, according to NAR. New Jersey's most populous city saw a 14.3 percent increase in average home prices from the third quarter of 2022 to Q3 of this year, the association said in an earlier report listing the top 10 metro areas with the largest year-over-year price increases.

NAR reported that the typical down payment for repeat homebuyers was the highest since 2005. Bidders with more cash on hand were able to seal the deal by offering larger down payments and paying with cash, said Jessica Lautz, NAR deputy chief economist and vice president of research.

"Given the erosion of housing affordability due to higher home prices and mortgage rates, the household income for those who successfully purchased homes jumped by nearly $20,000 and topped six figures for only the second time in our records," she said.

And, first-time homebuyers are also bringing higher salaries to the table — with an average household income of $25,000 more than in 2022, Lautz said.

NAR's survey shows that the number of first-time homebuyers increased last year, to represent 32 percent of all people who purchased a home. That is an increase from last year's historic low of 26 percent, but still below historical averages of 38 percent.

"First-time buyers tiptoed back into the market this year with less competition and fewer multiple-offer scenarios," Lautz said.

Click here to read the full report from the National Association of Realtors.