Particle.news
Download on the App Store

New Jersey Leads U.S. Home-Price Gains as Cotality Warns of a Split Market

Mortgage-rate volatility is cooling demand, leaving several Florida metros most exposed.

Overview

  • Cotality’s February report shows New Jersey up about 5.93% year over year, with Newark posting a 6.7% gain to lead large metros.
  • U.S. home prices rose 0.5% from a year earlier in February and slipped 0.16% from January as higher mortgage rates cooled demand.
  • Analysts link New Jersey’s strength to spillover from New York City, a dense base of high-wage jobs, and very tight inventory.
  • Inventory in the state sits below pre-pandemic levels, and roughly 40% of February sales closed above asking price.
  • Cotality says 70 of the 100 biggest metros screen as overvalued, and its risk model points to several Florida markets as most likely to decline over the next year.