Kathy Morin, President, New Jersey Realtors
Homeownership is still the best path to value creation, according to Kathy Morin, president of New Jersey Realtors. “No matter what vehicle you choose to purchase regarding residential, it will give you the best return on investment,” she told Invest:.
What were the key highlights for the New Jersey real estate market in the last year?
There has been quite a bit of change in the real estate market in the past year, but especially here in New Jersey. This past summer, the Real Estate Consumer Protection Enhancement Act was signed, which has increased transparency for both real estate professionals and consumers. Some of the changes include the requirement of a seller’s property disclosure and brokerage service agreements, which now need to be in writing. Those are with the brokerage, the seller, the buyer, the tenant, or the landlord.
That needs to happen before you begin your relationship. It outlines how you are compensated and how you will work with the other person.
How have you seen the market evolve and what is the state of the sector in New Jersey?
The real estate market truly has been cyclical. I’ve been through seller’s markets, buyer’s markets, the 2008 to 2011 downturn, and the recession. It has been quite a ride, and this market is no different from any other market. We’re seeing high prices and high mortgage rates. We’re still working to educate the public and consumers on the benefits of using a realtor and the realities of what’s going on in today’s market. The cost of housing, especially for the first-time homebuyer, is rising. For example, in New Jersey, the median sales price has risen to $560,000, which is 11% over 2023 prices. This is despite the rise in inventory coupled with high interest rates. It’s a barrier for some people.
People have to expand the areas where they’re looking to purchase to find neighborhoods that are conducive to their lifestyle and what they want to purchase. We’re advocating with the state to find ways to help people get into programs that will help them reach the American Dream of homeownership.
What is the main reason for the influx of residents and businesses relocating to New Jersey?
New Jersey remains a great place to live. It has great opportunities. The business environment is still strong. We have a lot of industry, a lot of education. It’s a corridor to both New York and Philadelphia as well as to the country.
I like to say what New Jersey makes, the world takes. We are a great place to be. We have every type of environment that you could think of. We also have great recreation and great educational opportunities. This is a great place to live.
What would you tell new investors who are trying to enter the real estate market in New Jersey?
First, I would tell them to find a good realtor. A good realtor knows their community, and knows the areas in which somebody would like to invest in. They would also be able to help guide new investors in their purchases. When you’re looking to invest in New Jersey, you’re looking to get a return on your investment. Typically, owning property is a great investment.
What are people looking for when it comes to buying a home today?
The constant no matter what you’re doing as far as purchasing real estate is location, location, location. That is No. 1. After that it is the amenities. With residential, that is typically bedroom space, land, townhome living, condo living versus single-family detached living, and adult communities. All those things go into the mix as far as what somebody is looking for. The simple fact that a realtor has the most knowledge and can guide them to that is really important.
What are the key areas of focus for New Jersey Realtors?
We need to concentrate on working with our government and our other agencies to help find ways to make homeownership more affordable for everybody. Inventory is a big key to that. As the inventory rises, prices will stabilize, and hopefully, interest rates will come down. Those are the key areas that we’re working toward.
What product is the most in-demand, single-family or multifamily with mixed-use?
Most people prefer a single-family home, but mixed-use is still on the rise. It depends on what a person can afford, where they want to live, and what their lifestyle choice is.
What is your outlook for the real estate market in New Jersey?
In the coming year, hopefully, we’ll see more inventory on the market and more people buying homes.
Homeownership is still one of the best ways to create wealth, to be a part of a community, and to have a sanctuary for yourself. I think that the industry is going to see the retention of value in a home. No matter what vehicle you choose to purchase regarding residential, it will give you the best return on investment.
