The median price of a new
single-family home (excluding age-restricted units) in
Monmouth County increased 25 percent over the previous
year and 40 percent over two years before,
said a study by the Monmouth County Planning
survey studied home sales between September 2003 and
survey found that a typical new single-family home was
3,900 square feet on a 2/3 acre lot, and cost $702,000.
study looked at 2,266 single family units, which were
broken into five price range categories of about 450
McDonald, a real estate agent for Prudential
Premier Properties in Asbury Park, said the coastal
region of Monmouth County is appealing for several
reasons, the primary one being the beachfront.
said there is a national trend of people having
second homes on the beach, either for investment
purposes or personal use.
said other reasons people are drawn to Monmouth County
are its proximity to major cities such as New York and
Philadelphia, with available bus and train
transportation, and because the county is a relatively
quiet, safe place to live.
Wilbert, a senior loan officer at First
Interstate Financial Corp. in Shrewsbury, said Monmouth
County’s closeness to large job markets
makes it a desirable place to live.
County is a tremendous bedroom community for the
employment centers of New York and New Jersey,”
Wilbert said. “Plus there’s many good
wage employment centers within Monmouth
said another reason for the increase in home prices is
the low market interest
rates as well
as the creation of many adjustable rate and interest
programs that lower interest rates even further.
said that because of the low interest rates people are
now moving into houses that they would not have been
able to afford before.
said homeownership affordability has reached record
levels, but that the trend will not continue unabated.
said the market will begin to cool down as
interest rates go up.
you should see is a leveling of prices as these
mortgage programs begin to go through a cycle of
interest rate increases,” Wilbert said.
said that although real estate, like any market, is
full of uncertainty, he does not anticipate
seeing a major drop in home values in the near future.
Clark, the director of planning for the Monmouth County
Planning Board said Monmouth County has been an
attractive place to live for the last 40 or 50 years.
said that Monmouth County has followed the pattern of
skyrocketing home prices throughout the country in the
last few years.
like Wilbert and McDonald, Clark said it is unlikely
the home prices will continue to climb at such a
think at some point there’s got to be a little
re-adjustment, so to speak,” said Clark.
“The way some of these homes are selling I
think its way inflated and there will be a
added that people have predicted the market would slow
down for the last few years, but home prices have
continued their dramatic increase.
Chen, the project manager for the study, said the
survey helps the planning board to gain an
understanding of housing
are happening in Monmouth County.
said one trend is the increase in senior communities
(ages 55+) being built in the county.
said more than half of all new construction in the last
year has been the building of senior communities.
noted that the survey only looked at new homes that
were built as part of a development, and not as
trend found by the survey was the large increase
in the price of higher-end multi-family developments in
survey found that the median price for a new
multi-family home rose from $325,000 in 2003 to
$480,000 in 2004, a nearly 50 percent increase.
median price of the upper one-third of multi-family
developments rose 98 percent from $700,000 in 2003 to
$1,385,000 in 2004, the study said.
study said this is due in part to the building of
more luxurious units in response to the wealthier
population segment’s increased interest in the
study also noted the increased development taking place
in Monmouth County’s coastal communities,
including Asbury Park.
said the increased beachfront development in Asbury
Park will have a “positive impact” on home
values in the city.
said he likes what he has seen proposed in Asbury Park
and the energy that is going into the redevelopment
said his hope is that the benefits of redevelopment
will be citywide and not just for the oceanfront.