NJ one of 3 states expected to see housing market crash in 2024

It looks like New Jersey's housing market may soon run out of steam. And that's unfortunate for so many living in The Garden State.

According to a recent report released by ATTOM, New Jersey is among one of the top three states expected to see a housing market crash in 2024.

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Illinois and California are the other two states expected to see housing market trouble in the months ahead. The list also includes individual cities in multiple states, such as New York City.

According to Newsweek, "Real estate markets in Illinois, New Jersey and California are at risk of downturn next year due to higher levels of foreclosures, unemployment and underwater mortgages."

In New Jersey, the areas that are particularly vulnerable in 2024 are "Bergen, Essex, Ocean, Passaic, Sussex and Union counties." Those areas in the Garden State are facing similar challenges as New York City.

According to the report released by ATTOM, those areas showed "the most vulnerability based on the portion of mortgage balances that exceed the value of the homes, average local wages required for home ownership expenses, and local unemployment rates."

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More likely, but not a definite

One thing to keep in mind is that this merely points to a trend, but not a definite one. For example, many experts believed that the country as a whole would enter a recession at some point in 2023.

Now in 2024, that has yet to materialize. It doesn't mean it won't happen in the near future, but rather that trends could change and become less favorable for such an event to occur.

That's why it's important not to jump to conclusions that a housing market crash will definitely happen in New Jersey. Yes, we're trending in that direction, but the winds can change.

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Another fortunate sign for New Jersey is that we got through the winter months without any significant downturn. But with spring often being one of the most popular times of year for home sales, we may begin to see that downturn soon should it materialize.

Again, that doesn't mean it's a definite for the Great Garden State. For now, it's just something we need to pay close attention to as we continue into 2024.

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The above post reflects the thoughts and observations of New Jersey 101.5 Sunday morning host Mike Brant. Any opinions expressed are his own.