Top ten most expensive towns revealed as NJ real estate nears NY levels

New Jersey is witnessing a significant rise in real estate prices, with the state's median sale price surpassing New York's in 2023. Realtor.com economist Hannah Jones noted that "the median sale price in the state of New Jersey [$443,775] was higher than in the state of New York in 2023 [$431,520]." This increase reflects a growing demand for properties in New Jersey.

Although the current year's median home prices show New Jersey slightly trailing behind New York ($469,906 versus $470,235), the growth trend remains notable. Between 2019 and 2023, home prices in New Jersey rose by 48.4%, outpacing New York's 37.6% increase.

The top five most expensive zip codes in New Jersey include Deal, Alpine, Mine Hill Township, Sea Girt, and Mantoloking. Median sale prices range from $2.3 million to $6.5 million.

Guy Hobson from Coldwell Banker Warburg attributes part of this surge to migration patterns: “These areas are attracting people from all over the country—not just New Yorkers." The proximity to New York City makes these towns attractive for those who can work remotely or need to commute occasionally.

Hobson also highlights inventory shortages as a factor keeping prices high: “Much of the lack of existing inventory (around 25%) is due to homeowners that locked in 2%-3% interest rates during pandemic-era lows."

Allan DeGuzman from Real Estate Bees suggests that interest began rising before the pandemic as many sought larger properties outside NYC. He states that "a lack of inventory might keep prices in the stratosphere," especially with older homeowners hesitant to sell due to mortgage lock-in effects.

Rachel Miller observes different demographics influencing certain areas: "New York plates are almost nonexistent," she says about Avalon and Stone Harbor being more popular among Philadelphia residents.

In northern towns like Alpine and Chatham, families prioritize quality education and suburban peace while maintaining access to NYC via train stations.

Real estate agents Geoff and Lorraine Hurlbut note aggressive buyer behavior leading them to nickname some buyers as "Jaws." Geoff explains: “Frequently there is one offer that is substantially above and beyond others."

Celebrities have also been drawn to places like Alpine—home once or currently to Eddie Murphy and Britney Spears—further adding allure despite high competition and costs.

DeGuzman concludes by affirming its worthiness for those seeking upscale living close yet distanced enough from urban life: “If you’re after high-end peaceful living... it’s definitely worth it.”