Challenges Persist in the New Jersey Housing Market BY LISA FANT
I
n October, the New Jersey housing market continued to grapple with the persistent challenges of high interest rates and escalating home prices, leading to a continued decline in sales. According to the data from New Jersey Realtors®, single-family closed sales saw a 16.3% decrease in October, totaling 4,704 transactions. Townhouse-condo closed sales followed suit, dropping by 17.8% to 1,607, while adult communities experienced a 3.4% decline, amounting to 650 closed sales. Despite the challenges posed by rising interest rates, there’s a positive shift in the New Jersey real estate landscape. New first-time buyer programs are opening doors for prospective homeowners, creating opportunities despite the current market conditions. These initiatives aim to make homeownership more accessible, providing a silver lining for those aspiring to own a home in the Garden State. Learn more about these programs at nj.gov/dca/hmfa/roadhome. The National Association of Realtors® reported a 2.0% month-over-month and a significant 15.4% year-over-year decrease in U.S. sales of existing homes, emphasizing the national impact of this trend. The combination of elevated sales prices and rising interest rates has led to a substantial reduction in purchase activity compared to the same period last year.
The median sales prices in the New Jersey housing market also witnessed noteworthy changes. Single-family median sales prices surged by 10.6% in October, reaching $519,950, while townhousecondo median sales prices increased by 14.0% to $387,500. Adult communities experienced a median sales price growth of 7.7%, reaching $349,999. According to New Jersey Realtors® recent market conditions member poll, the fall market is proving more competitive than the previous year due to low housing inventory. Inventory of homes for sale in October 2023 dropped to 13,859 from 19,316 in October 2022,
according to New Jersey Realtors® housing market data report. However, Realtors® are finding opportunities in the midst of the fall market’s heightened competition. Sellers’ agents report an average of 5.4 offers for their most recent sale, showcasing increased activity compared to last year. The average number of days on the market dropped from 29.1 last November to 25.6 now, with 43% of homes selling within seven days. Six-in-10 homes sold for over asking price—a significant jump from November 2022. For the full reports, visit njrealtor.com/data.
Single Family Market Overview Key metrics for Single Family Properties Only, excluding Manufactured Housing, for the report month and for year-to-date (YTD) starting from the first of the year.
Key Metrics
Historical Sparklines
New Listings 10-2020
10-2021
10-2022
10-2023
10-2020
10-2021
10-2022
10-2023
10-2020
10-2021
10-2022
10-2023
10-2020
10-2021
10-2022
10-2023
10-2020
10-2021
10-2022
10-2023
10-2020
10-2021
10-2022
10-2023
10-2020
10-2021
10-2022
10-2023
10-2020
10-2021
10-2022
10-2023
10-2020
10-2021
10-2022
10-2023
10-2020
10-2021
10-2022
10-2023
Pending Sales
Closed Sales
Median Sales Price
Avg. Sales Price
Pct. of List Price Received
Days on Market
Affordability Index
Homes for Sale
Months Supply
10-2022
10-2023
Percent Change
YTD 2022 YTD 2023
6,463
6,064
- 6.2%
83,378
63,715
- 23.6%
4,869
4,619
- 5.1%
61,989
49,914
- 19.5%
5,623
4,704
- 16.3%
63,418
47,685
- 24.8%
$470,000
$519,950
+ 10.6%
$475,000
$500,000
+ 5.3%
$591,787
$650,867
+ 10.0%
$594,382
$634,586
+ 6.8%
100.5%
102.4%
+ 1.9%
102.9%
102.3%
- 0.6%
38
34
- 10.5%
33
37
+ 12.1%
85
73
- 14.1%
85
76
- 10.6%
19,316
13,859
- 28.3%
--
--
--
3.1
2.9
- 6.5%
--
--
--
Percent Change
Data as of November 20, 2023. All data from the multiple listing services in the state of New Jersey. Margin of error for reported statewide numbers is +/- 4% at a 95% confidence level. Provided by New Jersey REALTORS®. Report © 2023 ShowingTime. | 2
Designated REALTOR® | December 2023 | 1
