A New Jersey city once known as the car theft capital of the world has transformed itself over the last three decades from a blighted crime metropolis to one of the hottest real estate opportunities on the East Coast.
Located just 30 minutes from Manhattan, Newark has been ranked as the most competitive housing market in the nation, according to a spring market report from Redfin.
Real estate values have surged as criminal activity has fallen in Newark, with violent crime down by 19 percent last year, according to the Newark Star-Ledger.
Three in five homes sold above asking prices in May, the highest rate of the 50 most populous cities in the US.
That’s 57.6 percent of homes, narrowly beating runner-up San Francisco, where 57.3 percent of homes sold above the original asking price in May.
New Jersey is widely seen as one of the most expensive and competitive real estate markets in the country, thanks to its proximity to New York City and Philadelphia.
Statewide annual home price gains peaked in February, up 6 percent year over year, according to Cotality. The February report showed Newark led the nation in year-over-year price appreciation at 6.7 percent.
‘Newark has been rediscovered,’ real estate broker Michael Rosa told HousingWire, who said a wave of luxury apartment construction has helped revive the city. ‘More recently, there’s just been so much investment going on over here.’
Located just 30 minutes from Manhattan, Newark has been ranked as the most competitive housing market in the nation
Newark led the nation in year-over-year home sale price appreciation, up 6.7 percent in February
While New Jersey's statewide real estate market has seen falling prices, Newark delivered a 7.7 percent year-over-year increase in single-family prices in April
The report comes as New Jersey’s housing market shows signs of cooling, with the state’s median single-family list prices falling slightly on an annual basis as of April, according to HousingWire.
Newark is bucking the trend, however: HousingWire data showed the city delivered a 7.7 percent year-over-year increase in single-family prices to $492,500 as of April.
Redfin named another New Jersey city on its list of the hottest markets: New Brunswick was ranked tenth, with 39.3 percent of homes selling above their asking prices.
And on the other side of the New York City metro area, Long Island’s Nassau County was ranked as the fourth most competitive market, with 51.6 percent of homes selling for more than ask.
Pandemic real estate boomtowns continue to cool off, with West Palm Beach, Florida, the biggest loser: Only 6.6 percent of homes sold for more than asking price, while in Austin, Texas, just a hair over 9 percent of homes sold for more than the list price.
Both regions saw a surge in new construction that has oversupplied the market, while rising insurance and HOA costs put a brake on affordability.