New Jersey Home Affordability hits Record High

Dated: 07/07/2012

Views: 4918

The National Association of Realtors reports that the home affordability index for New Jersey hit an all time high in the first quarter of 2012.  The index for New Jersey hit 174.3.  That means that the median income of a New Jersey resident is 174.3% - or almost twice - the amount needed to qualify to purchase the median priced home in New Jersey. 


The index is arrived at by comparing the median income of a New Jersey resident to the principal and interest payments necessary to amortize an 80% mortgage on a median priced home.  The mortgage payments are computed at the prevailing mortgage interest rates for a conventional, 30 year mortgage.   


This means that homes in the Manahawkin and Barnegat area can be purchased for less than they can be rented even if the buyer puts very little money down.  When you add to that the wide selection of available homes for sale in southern Ocean County, the result is a market that offers home purchasers perfect buying conditions. 

Blog author image

Jeffrey Gamble

Jeff has been a full time real estate agent in Southern Ocean County since 1973, so he knows his way around the Long beach Island territory as well as around the real estate business in general. Jeff....

Latest Blog Posts

Morris Boulevard Bridge Closure In Stafford Township Part 3

Okay, here's a serious question.  How many times have you been on Route 72 East or Marsha Drive and made that left or right turn instead of heading straight and went right for Morris

Read More

Buy Your HolidayThemed PreSeason Beach Badges

Beach Haven has announced its special holiday beach badges are now on sale. The badge was designed by Marina Bresley, a fifth-grade student at Beach Haven Elementary School.“It’s

Read More


Thanksgiving gone and Christmas just moments away. So what can we expect for 2020? Rates don't look like they will move in either direction in the near future. Financial markets have had a very nice

Read More

Why Buyers Will See Fewer Distressed Sales In The Long Beach Island NJ Real Estate Market

Why Buyers Will See Fewer Distressed Sales in the Long Beach Island NJ Real Estate MarketLong Beach Island Real Estate Distressed SalesThe Long Beach Island real estate market does

Read More