Buying in NJ Right Now Might Feel Expensive, But It's Actually a Discount

Let’s talk about something that feels counterintuitive: Buying a home in New Jersey today, even at prices that seem high — is still getting in at a discount.

How? It comes down to one key factor: long-term appreciation.

I talk to a lot of new potential buyers and existing homeowners throughout the week, and the very common exclamation: "Homes are so expensive!"

We have seen dramatic appreciation in the past few years, where this relative comparison to home prices just under 10 years ago is understandable that things feel expensive. 

At the same time, I remember when I first dipped my toe in the market to look for something to buy, it was 2019, and I was looking at a multi-family in East Rutherford... For $350,000.....And walked away from it saying, "The number's don't make sense," "That's way too expensive!"

Fast forward to now, that same property is worth around $650,000 at a minimum. 

Okay, fine, Alex, but how can this continue?!

Appreciation Has Been Strong, And It's Not Slowing Down

Over the past five years, New Jersey home prices have climbed dramatically, in many areas, we're talking 40–60% appreciation or more. While some buyers have been waiting for prices to “come down,” the reality is: they haven’t, and likely won’t.

Why?

• We’re not building fast enough. New construction is limited due to zoning restrictions, high costs, and limited space, especially in established towns with good school systems or easy NYC access.

• Inventory is low. Most homeowners are sitting on low mortgage rates and have little incentive to sell, creating intense competition for the homes that are on the market.

• Demand isn’t going anywhere. Between first-time buyers, investors, and people relocating, New Jersey remains highly desirable.

  
  

Even with interest rates higher than we've gotten used to, prices haven’t dropped, and that says a lot.

So Why Is It Still a “Discount”?

Let’s zoom out.

The average annual appreciation in NJ over the long-term has hovered around 4–5% annually, and in strong markets, it’s even higher. If that trend continues (and all signs point to it), the home you buy today for $600,000 could be worth over $700,000 in just a few years.

That means:

• You’re building equity from day one.

• You’re locking in today’s price before the next jump.

• You’re investing in something that’s likely to grow faster than inflation or your savings account.

  
  

You can refinance your rate — but you can’t go back in time and lock in today’s home price.

The Bottom Line

If you’re waiting for a “better” time to buy, you may end up paying more for the same home later

, with no guarantee of lower rates or better inventory.

Buying now might feel like you're buying at the top, but in reality, you're getting ahead of the next wave of appreciation.

Want to chat about what’s happening in your local market or whether it makes sense to buy now?

I’m happy to walk through the numbers with you and help you make the best decision for your situation.

This is of course my personal opinion. What do you think?!

Just reply to this email or click here to schedule a quick call.