In many New Jersey towns, the real estate market is on fire. High demand by buyers and a relative housing stock shortage are sending real estate prices through the roof. Using Zillow’s Home Value Index, a recent article listed 19 New Jersey towns that have experienced their highest median home value at the beginning of 2017 and unprecedented growth.
Zillow’s Home Value Index revolutionized the way median home prices are calculated. Taking into account that the most accurate report would be more like a commodity price index or a consumer price index–the same set of goods and their respective prices can be evaluated in all time periods–and realizing real estate sales never represent the same set of goods in all time periods, Zillow developed a Zestimate.
A Zestimate is a calculation of the value of every home at any time. This enables Zillow to truly analyze the value of the homes in a single market over time rather than referring simply to sales in a given quarter which only tell the story of certain homes at certain times.
The 19 towns highlighted exclude shore towns because they are often secondary home markets, but each is well above the statewide growth seen last year. Many of these towns, in fact, have recovered from the 2008 housing crisis significantly faster than the rest of the state and are even experiencing higher home values than they were prior to the downturn.