Real estate agents and brokers are finding a hot market right under their noses in Bayonne, on the Gold Coast’s southernmost city.
Driving the growth in the market is ongoing revitalization projects in the community that city officials are hoping will in turn revitalize the city’s downtown business district and service industry.
However, agents have already seen a positive change in the local market.
In 2013, there were 380 properties sold at an average price of $248,000. Every year since, both the average price of properties and the number of sales have risen, according to Joe Hottendorf, executive vice president of Liberty Board of Realtors in Secaucus.
According to the Jersey Journal, by the end of August, there were 537 sales in residential properties this year, with an average price of $283,000.
“And we still have four months to go,” he added.
Chris Piechocki, a real estate agent in Bayonne for the past 16 years pointed out that sales of one- to four-bedroom properties and condominiums have been improving since 2012, while values have also increased 25 percent.
Piechocki pointed out that the community has seen an influx of younger buyers, opting for Bayonne over more expensive places like Brooklyn. He also has seen clients who were looking to move to Hoboken or Downtown Jersey City and see a better opportunity in Bayonne.
“There’s a great amount of demand and such a lack of inventory that buyers are basically backed up,” he said. “And as soon as something becomes active it’s pretty much done right away as long as it’s priced right.”
Rising rent in communities like Hoboken can also move clients off the fence when it comes time to buy.
“I just had two couples who submitted applications who were both from Hoboken,” Piechocki said. “They feel like their rents are just too inflated in these other areas and they want more for their money; they realize they can have money in their pocket and be an extra 15 minutes from those restaurants and bars.”
As real estate agents, we can look for communities like Bayonne that are being proactive with development and infrastructure investments. This can signal a future shift in real estate trends. These communities could prove to be great options for discerning clients.