Hasbrouck Heights is an area of New Jersey within close proximity to mainstays such as East Rutherford, Hackensack, Yonkers and just on the other side of the Hudson River from Manhattan. It is a relatively small, upscale community that combines the luxury of a small hometown market with surging home prices.
The Hasbrouck Heights, New Jersey real estate market is on the rise. After a brief decline during the recession, Hasbrouck Heights has rebounded nicely in recent years. Unemployment has stabilized and foreclosures are on the decline. The economy is growing and home values are improving. The Hasbrouck Heights housing market combines high-end properties and a small town feel, which – to this day – continues to draw interest from all over the country. At the very least, Hasbrouck Heights has turned a corner and progressed very nicely. With higher list prices and a strong economy, the positive growth of Hasbrouck Heights real estate should continue well into the future.
According to Realtor.com, the average sales price for the Hasbrouck Heights real estate market is $ 383,342. However, for as high as this figure is, it is still 20 percent less than the average home price in the area ($ 460,046). The average home price per square foot in Hasbrouck Heights is $ 244, which is well above the average for New Jersey ($ 87) and the national average ($ 114). The difference in sales price and actual home vales suggests that the Hasbrouck Heights real estate market is a soft buyers market. Good values on homes are still available, as the number of homes listed for sale is greater than the number of homes being sold. The Hasbrouck Heights housing market represents just a part of the 2,633,705 properties and 67,036 homes for sale in all of New Jersey. That said, the average price of a home in this area is reflected in the average home price ($ 146,888) and average sale price ($ 330,233) of the greater New Jersey area.
Over the past ten years, Hasbrouck Heights real estate has seen appreciation rise. In that time, homes have appreciated by as much as 15 percent, with an average annual rate of 2.97 percent. In the last five years, the local market has seen an equity increase of just over 10 percent, with an average annual rate of 2 percent. Over the past twelve months, equity has climbed 5.79 percent. These figures are similar to the statewide and national averages. Looking at only the past five years, we see that many local homeowners are sitting on a good amount of equity, which is giving buyers confidence moving forward. This increased level of equity has played a part in the rising list prices and overall strength of the local market.
The economy in Hasbrouck Heights is led by Corporate, Subsidiary and Regional Managing Offices industries, which account for almost 5 percent of all jobs in the area. The current local unemployment rate is 5.2 percent, which is below both the state of New Jersey (6.2%) and the national rate (5.4%). Recent job growth (1.04%) is just slightly below the national average. What may be a more telling number is that the level of future job growth is 36.9 percent, which is higher than the national projection. This means that while the economy is growing on a steady pace, it is projected to continue well into the future. This has a direct impact on buyer’s preferences, and offers some indication as to where the market may be headed.
The cost of living in the Hasbrouck Heights housing market is 6.7 percent higher than the rest of the state. This is offset by the fact that the median household income level of $ 94,000 greatly exceeds the $ 72,000 average for New Jersey. Furthermore, this is almost double the national median income average of $ 52,000. Affordability is important to most homebuyers, but there is also something to be said for paying for quality. The Hasbrouck Heights real estate market provides both quality and a great chance to see higher equity appreciation. Higher median household income levels typically equate to properties that are better maintained, and will hold their values for much longer.
The Hasbrouck Heights housing market was never one to garner a significant number of new housing permits. Even at the height of the real estate market in 2005, there were only 26 permits filed. That number crashed all the way down to just one in 2009, but in recent years there has been a resurgence. From 2011, the number of permits increased from two to seven, all the way to 24 in just three years. After years without any multifamily permits, that number climbed into double figures (10) in 2013. The increase suggests that the rental market is growing in strength, and demand may be rising. Monthly rental averages have gone up since 2012, from an average of just under $ 1,600/month to the current level, just under $ 2,400.
According to RealtyTrac, there are about 81 homes in the Hasbrouck Heights housing market in some state of foreclosure. Otherwise known as distressed, these properties are either in a state of default, bank-owned or due up for auction. Either way, the Hasbrouck Heights real estate investing market should see these properties as an opportunity. Distressed homes sell for less than non-distressed homes, and could potentially provide Hasbrouck Heights real estate investors with better spreads.
In the last month, foreclosures in the area increased 50 percent. Over one year’s time, foreclosures increased 20 percent. The largest increase over the last 12 months was in the pre-foreclosure category, meaning homeowners are simply at risk of losing their home. However, those that have been unable to keep up with mortgage obligations may be able to work out a win-win scenario with someone currently working in the Hasbrouck Heights real estate investing community. Trulia‘s foreclosure numbers are on par with that of RealtyTac, which suggests there are deals for Hasbrouck Heights real estate investing.
Hasbrouck Heights is a real estate market with higher than average home prices. It has also shown great equity growth in recent years, despite the landscape of a recovering economy. With the economy growing and predicted to remain strong, home values should rise accordingly. The number of foreclosures has dropped off a cliff, and the amount of homeowners with negative equity is below the national average. If the economy continues to grow, there is no reason not to think that the area won’t continue to flourish, and Hasbrouck Heights real estate investing, along with it.
Hasbrouck Heights Housing Market Summary:
- Current Median Home Price: $ 460,046
- Unemployment Rate: 5.2%
- Population: 12,022
- Median Household Income: $ 94,000