Home Buying in 07302>Question Details

Neil, Home Buyer in Jersey City, NJ

Zillow predicts The Waterfront home values will decrease 0.2% next year, compared to a 3.7% increase for Jersey City as a whole ???

Asked by Neil, Jersey City, NJ Fri Jun 7, 2013

I was looking at few waterfront condos mainly at trump in low 500s and came across this advice on Zillow...-"Zillow predicts The Waterfront home values will decrease 0.2% next year, compared to a 3.7% increase for Jersey City as a whole ??? " Is this true? What do you guys say?

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Answers

5
Hi Neil,

I will second what my colleagues have said below, to an extent. While the Zillow "Zestimate" is an admirable attempt at an algorithm to predict the value of homes, it is just that: an algorithm. The same goes for their predictions relating to property value trends.

Having said that, I WILL say that there seems to be a large supply of inventory in the price range and style you are looking at, in addition to which there are a number of new builds which will saturate the Jersey City market with new condos and rentals. When you compare this to the Van Vorst or Hamilton Park neighborhoods which are primarily made up of brownstones of which there is a limited supply, it is easy to understand why supply and demand might dictate that these units might increase in value faster than the more unpredictable luxury high-rise market.

I hope this helps, and if you don't yet have an agent, please feel free to contact me and I will be happy to assist you.

Best Regards,

Jonny Lowell-Mazzye
Joseph A Del Forno, Inc.
917.284.2806
jonny@delfornorealestate.com
0 votes Thank Flag Link Tue Nov 12, 2013
Zillow is horrible for this area. When you have a Million dollar property next to a 150K property and short sales and foreclosures in the mix its just not a good mix for how their website works.

If Jersey City is increasing then I would say that the water front is probably going to be higher.
The real question is has the market gone up too quickly and now with mortgage rates climbing will things stall out.

In Trump there are 13 one bedrooms for sale and a studio.
When compared to last year prices are up 50-100K from last years prices.

Does Zillow show this in its valuation? Nope

The best thing to do is get a realtor that understands the market and have them show you the comps. Even in Trump the Appraisals are not caught up with what is going on and so you just want to be smart with your purchase.
0 votes Thank Flag Link Thu Jul 11, 2013
I'm not a huge fan of Zillow's values or predictions. I suppose the damage caused by Hurricane Sandy could affect waterfront prices over all, but based on my experience, I just don't see it. I do see values overall in Jersey City going up, and I think at worst the waterfront would hold steady.

If you'd like some help getting an overall view of what is available in Jersey City, including the waterfront, please give me a call. I have lived here for over 30 years and have a thorough knowledge of Jersey City as a whole.
0 votes Thank Flag Link Sat Jun 8, 2013
Neil,

I cannot with certainty tell you whether prices are going to be higher or lower a year from now, nor can anyone else -- and it probably doesn't much matter in the long run. To demonstrate this point, most housing economists have been stymied by the dizzying pace at which home prices have risen in the last year.

But what I can tell you with a reasonable degree of certainty is that, over the long haul, real estate remains an excellent investment, which should be viewed as part of an overall investment strategy.

If you are buying a home that you will occupy, then you will not only benefit from the likelihood of increasing values, but will also benefit by no longer paying rent. This is what economists call imputed income.

Now, as to Waterfront home values going down 0.2% while the city overall goes up 3.7%, on what could that sort of statistic possibly be based? After all, Jersey City is the second largest city in New Jersey, with a rare and exciting diversity of neighborhoods. So the methodology would be of critical importance in evaluating the soundness of such a prediction. But, importantly, regardless of the methodology, it remains nothing more than a prediction -- or, perhaps, a guess.

You do not say in your question whether you are considering a first time home purchase, or some sort of purchase as part of an overall investment strategy. If the former, then it really does not matter what is happening overall, because surely you have an idea of where you would like to live either because of proximity to transportation, or for some other reason (or reasons). So why worry about it?

Instead, find a home you like in a building or neighborhood that you enjoy, and don't worry too much about next year's market ups and downs because you will be enjoying your new home for many years to come! And what will happen to the real estate market over those years is anybody's guess. If you want my guess: it is a very good time to buy, and the future for real estate is exceptionally bright!
0 votes Thank Flag Link Fri Jun 7, 2013
JC Hights is the new up and coming area.JSQ to the Hights! You have very fast comuite by tains & busses (take approx30 mins to NYC). There is Alot of action and biddin wars causing the prices to drive up!. After Hoboken flooding most invesotors are starting away and looking to purchase on the high grounds. Look at Edgeater as we speak. Parts of river rd are underwater. Over all I would agree with the analysis. If your goal is to building equity and a strong RE portfolio I would purchase off the water.

When would would like to chat more send me Email

Mrp@grouptwentysix.com
0 votes Thank Flag Link Fri Jun 7, 2013
when someone have such horrible spelling and grammar errors in their replies, I question how good the agent will be for me and how diligent he/she will be in finding something that matches all my criteria. First impression is an important thing. Take a min to reread what you wrote and fix what you can.
Flag Wed Sep 11, 2013
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