New Jersey is feeling the economic squeeze of the recession. As job loss becomes rampant in the engineering, architectural and software development sectors, other industries are following suit like manufacturing and retail that only hired a few workers during the holiday season. It was a correct anticipation over slow holiday sales. Majority of New Jersey’s metropolitan areas are losing their average home values and no signs of bottom prices are apparent so far.

Atlantic City is suffering from weak housing demand. The existing supply is poorly fetched by buyers who are not enticed by the bargain prices in the market. It can be blamed by the higher credit standards that mortgage providers are demanding plus the slowdown in gambling and entertainment revenues in the city. Government-sponsored refinancing is expected to salvage the weak mortgage industry. Homes are projected to lose more value by 10.5 percent in 2009.

Newark is strategically located 5 miles from Manhattan and the downturn in New York has spread in the Brick city as well. It’s a failed development area that has yet to find its support from the local government. Foreclosures are fast increasing and this year’s home values are taking the opposite route by dropping 9.5 percent.

Ocean City’s property market, composed of single family homes and vacation homes, is drying up too quickly. The coastal communities in the area are facing weak demand. Since sales are slowing down, the city will have to contend with downward pressures in home values throughout the year. This year, home values will drop by 10.5 percent.

Trenton’s businesses located in the Urban Enterprise Zone are benefitting from tax relief programs of the government. This fuels the growth of other sectors especially real estate. Home prices are taking a detour from the state’s general decelerating trend since 2008. This year, prices will be appreciating by a remarkable 2 percent.

Jersey City’s branches of Manhattan firms have raised employment numbers in the area. But the downturn in the economy has affected much of the city’s economy. The housing market has fallen in the dumps too. High foreclosure rates are denying the city from any further progress. Home values are forecasted by RealtyOutlook.com to fall by 9 percent.

In Edison, foreclosures are at such a high rate that sellers are resorting to low offers just to dispose their properties. The market is dumped by bargain homes but the low number of buyers are causing inventory to rise at unprecedented levels. For this, Edison’s home values will be lower by 7.5 percent this year.