Artificially inflated prices

[Jonatan Cris]

Hi all, I just wanted to share my thoughts and start a conversation on this subject.

In Hudson County New Jersey the average appreciation for the last 5 years has been around 3%, you could see houses for around 350k to 400k fully remodeled. But since January 2020 it has gone up to an insane 30% or more and now it is very hard to find properties in my area for under 450k, and they are to be fixed up.

It is my believe that this is only due to Covid and might even cause a crash since people are overleveraging themselves to be able to take advantage of the amazing interest rates that are also unprecedented.

I think that the market will correct back to the normal prices soon and that is the point when people will start having trouble with their properties.