Just the Peaks

This newsletter at a glance

  • With its high demand and limited supply, New Jersey real estate is fiercely competitive

  • Earlier this year, 32 NJ towns ranked in the country’s top 150 hottest housing markets

  • Everest presents 5 helpful tips for a successful home purchase in The Garden State

Despite economic concerns, New Jersey home listings are flying off the market.

Check out Everest’s NJ homebuying tips—and a few shocking facts along the way!

As Everest’s 2024 cross-country tour nears its end, we’d be silly to forget our beloved neighbor to the south—the great state of New Jersey. 

Over the years, we’ve helped clients seal countless deals in The Garden State and if there’s one thing we’ve learned—never count out New Jersey! One of the most misunderstood states in the nation, NJ has garnered a muddy reputation for its industrial wastelands, troublesome pollution, questionable smells, and rude residents (not all true, by the way!). 

But beyond these persistent stereotypes, you’ll discover why the state continues to top America’s lists of the ‘most sought-after real estate’ and ‘best places to live’ each year. There’s some seriously interesting stuff happening in NJ—especially from a real estate perspective.

Let’s explore!

Fascinating New Jersey nuggets

In today’s troublesome economic climate, buyers across the country must overcome a host of challenges on their path to homeownership (remember: your friends at Everest are here to help!). But despite these obvious hurdles, New Jersey real estate remains hotter than ever. 

Earlier this year, Realtor.com ranked the town of Montclair the 4th hottest housing market in the nation with median list prices at a whopping $844,250. New Jersey landed 3 more towns in the top 10 (Basking Ridge, Mount Laurel, and Ramsey) and a total of 32 towns in the top 150. Pretty impressive! 

So, what’s in the water?

To start, there are so many positive benefits to living in this Northeastern gem: 

  • Versatile transportation and close proximity to New York City and Philadelphia 

  • Strong job markets in healthcare, education, finance, technology, and more

  • Outdoor amenities including beaches, state parks, farms, boardwalks, and zoos

  • Diverse housing options ranging from modest condos to sprawling mansions

What’s even more fascinating is the unwavering loyalty of the state’s residents. People continue to move to (and stay in) New Jersey despite these unsettling stats: 

  • It’s no secret that NJ is the most densely populated state in the nation with 1,259 people per square mile as of 2023.

  • Sadly, New Jersey homeowners face the highest property taxes in the nation with average rates at 2.33% in 2024.

  • Living in NJ is not cheap! Stats suggest that housing is 30% higher and cost of living is 11% higher than the national average.

More peaks than valleys? 

New Jersey’s cutthroat real estate scene brings one truth to light: it’s a fantastic place to plant roots! Here at Everest, we know many clients are itching to buy but find themselves hesitating due to the current state of the market. Whether you’re eyeing homes in a quaint commuter town or along the serene beaches of the ‘Jersey shore,’ we’re here to help you overcome some expected barriers!

With the help of senior loan officer Alex Berkowitz, Everest presents: 

5 Tips for Purchasing a Home in NJ

 

Tip #1: Consult a trusted loan officer. 

When competition heats up, education is key. Every housing market is different—not just the state itself, but within its unique enclaves. This is why teaming up with an experienced loan officer can help immensely. 

“In today’s market, it’s extremely important to get pre-approved and know what your true buying power is,” says Mr. Berkowitz. “If you’re going to seriously compete for a home in a hot state like New Jersey, you have to know what you can afford. When working with clients, I encourage them to be honest about their financial situation.” 

Tip #2: Know the value, not just the price. 

While it’s helpful to look at ‘Zestimates’ and do other research online, the reality is, list prices are so complex. When searching for your Jersey dream home, first accept that things aren’t always what they seem. 

“Some markets tend to under or over price, and it really depends on the location,” notes Mr. Berkowitz. “Limiting your search based solely on list price might be counterproductive. This is why I also recommend working with a knowledgeable realtor—someone who knows the history of the town, realistic home values, and the kinds of numbers people are really getting.” 

Tip #3: Limit your search to 3 locations. 

NJ ranks 46th in the nation by square miles (in other words, the state is small). But you’d be surprised at the incredible diversity of its landscape and the vast differences that exist from town to town. It’s not uncommon to find a relatively affordable market nestled near one of the nation’s most competitive! So, it’s best to keep your target neighborhoods narrow.

“Try to stay focused. At the start, keep your search concentrated in about three towns,” Mr. Berkowitz advises. “Researching each area, its home styles, and home values helps you confirm the location is a good fit before you take the next step. It’s much more productive for you (and your realtor) when you’re not sifting through 20+ towns.” 

Tip #4: Know your financial limits. 

Per Mr. Berkowitz, getting a pre-approval is one surefire way to be taken seriously in New Jersey’s ‘best and final’ environment. An experienced loan officer can also help walk you through other financial considerations when purchasing a home in NJ. 

“If you’re moving from another state, you have to understand cost of living, property taxes, and other expenses like utilities, which run 12% higher than the national average,” says Mr. Berkowitz. “I help my NJ borrowers navigate these numbers and nail down a monthly payment they are comfortable with. If a home is listed at $999,000 and $1,000,000 is their absolute top—it may not be worth putting in an offer, especially if homes in the area are going for above ask price.” 

Tip #5: Understand waivers. 

With competition in the Garden State so savage these days, waiving inspections or appraisals may be the secret sauce you need to win a bidding war. Still, doing so comes with certain risks. If you’re thinking about compromising, work with your loan officer to weigh the pros and cons. 

“Waiving inspections can make your offer more attractive, as fewer contingencies means a faster closing process and better odds that the deal will go through,” Mr. Berkowitz notes. “But from a practical standpoint, you have to understand the risks associated with waivers. For instance, waiving an appraisal isn’t always possible. Most lenders will require it to ensure the property is worth more than the amount of the loan. I also want my clients to protect their investment, so I help them make an informed decision in these tricky situations.” 

Everest says: your Garden State dream is just a call away!

Everest Equity

Licensed for 

Residential Mortgage Origination in

NY, NJ, CT, PA, NC, FL, and TX

No matter where you buy, move, or invest, trust our diverse team of

 mortgage professionals to get you home with the best terms possible.