House Flipping Surges In New Jersey's Booming Real Estate Market
New Jersey continues to be one of the hottest markets in the country, but it is still dealing with an inventory shortage in a lot of desirable neighborhoods which is driving the purchase prices up even further. New Jersey is a hot commodity with it’s close proximity to New York City. Perfect homes are going fast, and even the less perfect homes are sold and off the market just as quickly. The run down homes that need some work are also moving with the rising popularity of renovation loans. Another positive trend that is helping the market deal with the shortage has been a large number of homes being bought and flipped, also known as house flipping.
What is house flipping?
House flipping is when a real estate investor buys a home that needs work at a low cost, fixes it up, and then sells the house in a short period of time for a profit. Homes that were considered flips made up about 6% of total single-family home sales which is all time high. The availability of financing on these types of transactions is also a new trend and is up 27% in 2018.
New Jersey’s Hot Spot: Hudson County
Hudson county continues to be one of hotter areas for buyers, specifically Jersey City. Over the last year the average price of homes in Jersey City is up 15% according to Trulia , and has become one of the number one alternative moving destinations for those who cannot afford Manhattan. Monmouth County also continues to be a desirable affordable destination for new buyers with areas like Asbury Park leading the way with an average homebuyer age of 35 yrs. old. It shows that younger people are moving away from the stereotype of just living in commuter towns and have expanded their search. The county has already seen a 7% rise in average price this year.