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Overall, New Jersey home prices will continue rising through 2022, but are expected to fall in 2023 as inflation and/or a possible recession take the bloom off the housing market, according to NJ real estate guru Jeffrey Otteau, president of The Otteau Group.

“After climbing 12% in 2020, NJ home prices could rise as much as 15% this year before falling back to “a more normal pace” of 5% next year,” said Otteau.

Many of the near-term positive factors buoying home prices are expected to continue. These include historically low interest rates, strong demand from Millennials switching from renting to buying, an uptick in sales of vacation homes and second homes, and continued economic recovery as the Covid pandemic gets under control.