National Market
In September, The Fed announced the highly anticipated 0.5% basis point drop in the target interest rate, fueling optimism among buyers and sellers. In October, Fed Chair Powell emphasized that they are “not in a hurry” to reduce rates rapidly, signaling that future cuts may be more gradual than initially anticipated. If economic conditions continue as expected with strong economic reports, markets currently project an additional 0.25 bps cut in November and another 0.25 bps in December. While many people are concerned about the potential impact of the upcoming November election, markets tend to be less influenced by elections than public sentiment might suggest.
Local Market Landscape
In Hoboken, desirable properties continue to move quickly, often with a highest & best and multiple offers above the asking price. Hudson County remains a strong seller’s market, particularly in Hoboken, where inventory remains very tight. In Downtown Jersey City and Jersey City Heights, we’re seeing the market loosen slightly, with some home categories beginning to tilt toward a neutral and in some instances a buyer’s market. This shift will ultimately result in a more balanced market. Click here for a detailed view of absorption rate for Hoboken, Downtown Jersey City, and Jersey City Heights. Coveted neighborhoods and towns across the country continue to be strong seller’s markets, while less desirable areas are beginning to lean toward a buyer’s market.
Locally, we’ve seen a softening in the rental market, with price reductions occuring more frequently and incentives offered in some larger buildings.
