New Jersey home prices low, but too pricey for some residents

Though mortgage rates and home prices are at an all-time low in northern New Jersey, the area remains one of the most expensive real estate markets in the country, and local citizens cannot afford the cost of moving into a new home, according to a recent article in The Record.

Incomes in some areas of the region have dropped by as much as 18 percent in one county over the past decade, yet home prices have risen 70 percent within that same time-span. The source states prices would have to come down by at least 17 percent in some counties in order to become affordable.

The paper discovered that families who make the median income are now further away from being able to afford a median-priced home than they were in 2000. However, this gap in what citizens can afford and the actual home prices hints that prices will continue to drop until they reach a level that boosts demand.

Though this may prompt some to consider moving to the area, other factors may impact demand before prices hit rock bottom. The Record states that the area's proximity to New York City could attract people to the area who can afford the current cost of homes.  

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