Challenges Persist in the New Jersey Housing Market

BY LISA FANT

In 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