Analysts expect that there will be a slight improvement in the residential property market in New Jersey in the year 2011 as compared to last year. Though a majority of the residents will not notice the change in the market situation, still they believe that this year will prove to be in a relatively good year.

According to analysts, the huge number of properties available at the auction of foreclosure houses is considered to be the main cause of the slow pace of recovery in the housing market.

Market surveyors have also warned the house builders of the state regarding their slow business in 2011. This is because new residences are found to compete with distressed residential properties, including the foreclosure homes of Trenton. The house building sector is to be affected by the excess supply of foreclosure inventories, analysts further added.

The housing experts are of the opinion that prices of houses are also expected to fall since foreclosure homes are offered for sale at a discounted rate, and the number of foreclosed houses is huge in number. In 2006, from the beginning of the industrial crisis, the cost of residences has dropped by 13 percent due to the massive supply of foreclosure properties in New Jersey. According to the real estate agents, unless the supplies are dropped, the house building industry will show a slow progress and the cost will remain low.

In the meantime in 2010, the house building market improved a bit as compared to 2009 figures but the market for new houses in New Jersey continued to be to be at a lower level. In 2010, the permits issued were 13,000 in total, an increase of 11 percent from 2009. According to the reports of real estate agents, huge supply of cheap houses in auctions of foreclosure homes had dropped the permits for new residences in 2009. This year, the total was the worst since 1945.

Realtors also hold that a small number of people in recent times are willing to purchase single family houses. A majority of the people preferred foreclosure houses offered for sale. So, the housing construction market has a degrading performance level. Home builders and realtors believe that with the stabilization of the job market and improvement of the national economy, 2011 will prove to be a nice period for the housing industry.

Analysts hold that this year will bring itself some kind of improvements, however minor it may be. Unless the number of properties in foreclosure auction reduces, the market is likely to show a slower recovery.