Home prices in the Big Apple’s burbs are sure heating up. Thanks to job growth, increasing confidence in the real estate market and low mortgage rates, home prices are steadily climbing up especially in Southwest Connecticut and Northern New Jersey.
Adding fuel to the fire is the fact that home buyers believe they must respond and act fast, to avoid getting burnt by even higher prices.
In Fairfield County, Connecticut, median home prices have increased 3.8% year-over-year. While prices in New Jersey they’ve gained 3% in both the first and second quarters of this year, compared to the same periods in 2012.
Although the tony Westchester market experienced a modest 1% gain in the first quarter this year compared to last, pending sales contracts in the area are up 22.5% over last year. And there’s less inventory available.
Lower inventory is also posing a challenge for Long Island, where home prices have been trailing the three markets mentioned above, mainly due to the number of foreclosures in the area. Still, there’s a 12.2% increase in signed contracts to date, compared to the same period in 2012.