Those who live outside of a major city and its suburbs are generally said to live in the exurbs. In some cases, exurbs are literally nothing more than a collection of residential neighbors located far from grocery stores or other community resources. Therefore, it can be difficult for those who live outside of large New Jersey cities to sell their homes. A lack of buyers can lead to increased volatility in home prices.
Realtor.com collected data that illustrates the impact that the last recession had on homes in the exurbs compared to homes in urban markets. Homes in urban markets are worth 22% more than they were in 2007 while homes in exurb markets are only worth 7% more than they were in 2007. Furthermore, properties in the exurbs took longer to get back to their 2007 valuations compared to those in urban environments.
In February 2019, home list prices in urban areas increased by 7% while only increasing by 3% in the exurbs. Furthermore, homes in the exurbs were on the market for an average of 85 days compared to 66 days for homes in cities. However, there are signs that people are starting to look outside of the city for affordable housing. This could be beneficial in the short term for residents of exurb communities.
Individuals who are looking to buy a home may benefit from considering the long-term financial implications of doing so. For instance, it may be worthwhile to think about whether a home will be easy to sell in the future or how a recession may impact its price. An attorney may be able to help an individual review a purchase contract and better understand his or her rights and obligations after agreeing to it.