While New Jersey home prices are climbing steadily, they won't reach their previous peak for another seven years, according to a report.
Jeffrey Otteau of East Brunswick-based Otteau Valuation Group told NorthJersey.com the slow pace at which home sales are increasing in New Jersey is to blame.
Otteau once expected prices to peak in 2018, 2019 or 2020 but he revised that prediction to 2023.
Home prices have climbed 3 percent in 2016 and should rise at the same rate next year, the report said.
Home prices in the New York metropolitan area, which includes northern and part of Central Jersey were nearly 15 percent below their 2006 peak as of late September. Real estate values in the area are now about where they were near the end of 2004.
The good news is that millennials are approaching an age where they might consider purchasing a home. About 325,000 New Jerseyans in that age range might look to buy in the next decade.
The bad news for sellers is that New Jersey's job growth in 2016 is also slower than in 2015. The state's unemployment rate is 5.3 percent compared to the national average of 5.
Census numbers released last month show median household income rose 5.2 percent nationwide in 2015.
New Jersey, however, didn't fare as well as the rest of the nation. The Garden State only saw a 0.3 percent in median household income from 2014 to 2015.
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