Designated Realtor February 2022

DESIGNATED

REALTOR

®

ISSUE 1: February 2022

WHAT’S ON THE NEW JERSEY HOUSING HORIZON

NJREALTOR.COM

I M P O R TA N T D AT E S & D E A D L I N E S

FEBRUARY

MARCH

APRIL

MAY

1 April Fools’ Day

1-6 National Association of

Black History Month

Womens’ History Month

1 Lunar New Year

2 Ash Wednesday

2 Groundhog Day

13 Daylight Saving Time Begins

14 Valentine’s Day

15 Passover Begins

Realtors® Realtor® Broker Summit

5 Cinco de Mayo

17 Mardi Gras

17 St. Patrick’s Day

10 Palm Sunday

8 Mother’s Day

18 Holi

12 30 Board of Directors Meeting NJ Realtors

21 NJ Realtors

Office Closed—Presidents’ Day ®

2 Ramadan Begins 5-6 National Association of

15 Tax Day / Good Friday

Realtors® Legislative Meetings

2 Eid al-Fitr

® Office Closed—Memorial Day

17 Easter 22 Earth Day / Orthodox Good Friday

24 Orthodox Easter

WHAT’S BUZZING IN REAL ESTATE?

1

Last month, Gov. Murphy signed A6206 into law following his conditional veto of the bill. It reaffirms the right for real estate salespersons to work as an independent contractor in New Jersey and clarifies that a law signed in 2018, which gave agents the ability to operate as an independent contractor or employee, would be retrospective, as well prospective. Read more on page 1.

4

According to Apartment Therapy, 98 percent of first-time homebuyers lost out on a home in 2021. Help your potential buyers through the stress of purchasing a home by encouraging them to narrow down their must-haves, having a strong mortgage pre-approval, and being completely prepared for home tours. Read more here.

5

Are you looking for a new show to binge watch? Check out the National Association of Realtors® “First Time Buyer” now available on Hulu.

Click here to watch.

2

A new version of the National Association of Realtors® Code of Ethics went into effect on January 1, 2022. Revisions were made to the Standards of Practice 1-8 and 12-1. Click here to read the 2022 Code of Ethics.

3

Realtor.com® released 12 design trends you’ll see everywhere this year. Eclectic fixtures, pet-centric design, and smarter kitchen storage all made the cut. Read more here.

6

If you’re looking for a way to give back to the industry and cultivate the future of the industry, consider donating to the NJ Realtors® Educational Foundation. Each year, the Foundation awards scholarships to college students interested in real estate endeavors. Click here to learn more.

Gov. Murphy Signed A6206 into Law

T

hank you for using your voice to support our Call for Action on recent independent contractor legislation. You made a real difference in this legislation.

10,926

At the end of January, Gov. Murphy signed A6206 into law.

The governor conditionally vetoed the bill, which replaced some language but retained the intent of the bill. The State Senate and Assembly unanimously approved the conditional veto on Jan. 10, 2022, in the final legislative session of 20202021.

There is still more work to be done to completely protect our independent contractor status, but this is a big step in the right direction.

Again, thank you for your support and using your voice to help educate decision makers at the state government level.

If you have any other questions, please email Douglas M. Tomson at dtomson@njrealtor.com.

Emails Were Sent to the Governor

4,760 Were Past Advocates

“

6,166 Were New Advocates

A6206 reaffirms the right for a real estate salesperson to work as an independent contractor in New Jersey and clarifies that a law signed in 2018, which gave agents the ability to operate as an independent contractor or employee, would be retrospective, as well as prospective.

”

Designated REALTOR® | February 2022 | 1

2021 END OF YEAR MARKET RECAP

BY ERIN McFEETERS

A

fter an unpredictable year of high prices, quick turnaround, and low inventory, the housing market in New Jersey in 2021 is one Realtors® will talk about for decades to come. The National Association of Realtors® reports existing home sales are on pace to hit their highest level in 15 years, with an estimated 6 million homes sold in 2021.

The total market median sales prices hit new heights in 2021—prices clocking in at $400,000, a 14.3 percent increase over last year. While the prices are staggeringly high, demand was right there with it.

Year-to-date homes sat on the market for 37 days and received 101.3 percent of the list price year-to-date in the total market.

There were 155,901 new listings in total in 2021, down five percent over 2020, and just 18,957 homes for sale in December, a decrease of 35 percent compared to December 2020. Low inventory will continue to push prices up in 2022, which is a plus for sellers, but the lower-than-average mortgage interest rates will keep buyers interested.

As of Jan. 20, according to Freddie Mac, the 30-year mortgage interest rate was 3.56 percent. While this rate is higher than rates we’ve seen in the past two years, it’s lower than the five-year average of 3.7 percent.

At the end of the year, the single family median sales price reached $435,000, a 14.5 percent increase over last year. Homes were in demand in this market segment, sitting for just 36 days and receiving 101.8 percent of the list price year-to-date. Single family closed sales increased just 0.6 percent in 2021 with 90,325 transactions, while pending sales dropped 4.7 percent and new listings dropped 7.5 percent in 2021.

The townhouse-condo market saw increases in every major category in 2021. The median sales price was up 8.8 percent to $310,000, there were 18.1 percent more closed sales than in 2020, and new listings were up one percent compared to 2020. The adult community market saw growth in 2021, with the median sales price reaching nearly $280,000 and 2.3 percent more closed sales than 2020.

For the full report, visit njrealtor.com/data.

SINGLE FAMILY MARKET OVERVIEW NEW LISTINGS

CLOSED SALES

MEDIAN SALES PRICE

DAYS ON MARKET

– 7.5%

+ 0.6%

+ 14.5%

– 34.5%

New listings were down 7.5 percent in 2021, with 107,205 listings.

There were 90,235 closed sales in the market in 2021, a slight increase of 0.6 percent from 2020.

Median sales prices were up 14.5 percent at $435,000 in 2021 over last year at $380,000.

The number of days on the market in 2021 decreased 34.5 percent compared to 2020, from 55 to 36 days.

Designated REALTOR® | February 2022 | 2

TOTAL MARKET OVERVIEW NEW LISTINGS

– 5% There were 155,901 new listings in 2021, down five percent year-to-date.

MEDIAN SALES PRICE

PENDING SALES

– 0.3% Pending home sales in 2021 decreased slightly by 0.3 percent, from 129,114 pending sales in 2020, to 128,743.

AVERAGE SALES PRICE

CLOSED SALES

+ 4.7% There were 129,915 closed sales in the market in 2021, a increase of 4.7 percent from 2020.

DAYS ON MARKET

% + 14.3%

+ 13.2%

– 33.9%

Median sales prices clocked in at $400,000 in 2021, a 14.3 percent increase over last year.

The average sales price rose 13.2 percent, from $436,821 in 2020, to $494,658 in 2021.

The number of days on the market in 2021 decreased 33.9 percent compared to 2020, from 56 to 37 days.

PERCENT OF LIST PRICE RECEIVED

AFFORDABILITY INDEX

INVENTORY

$

$

+ 2.5%

– 11.9%

The percent of list price received rose 2.5 percent, from 98.8 percent in 2020, to 101.3 percent in 2021.

The affordability index was down 11.9 percent in 2021.

– 35% There were 18,957 homes for sale in December 2021, a decrease of 35 percent compared to December 2020.

Designated REALTOR® | February 2022 | 3

CONGRATULATIONS 2021 WINNERS

Circle of Excellence Sales Award®

ADVERTISING OPPORTUNITIES Share these opportunities with your agents.

Click the name of each publication to view their current NJ Realtors® Circle of Excellence Sales Award® offer.

Designated REALTOR® | February 2022 | 4

Black History Resources to Share this Month

I

n February we honor and pay “tribute to the generations of African Americans who struggled with adversity to achieve full citizenship in American society,” according to blackhistorymonth.gov. Encourage your agents to take time to expand their minds, promote diversity in their businesses, and raise awareness about the importance of cultural history. Click the underlined titles to learn more.

REALTOR® EDUCATION OPPORTUNITIES Earn the At Home with Diversity Certification This National Association of Realtors® certification course helps educate Realtors® about fair housing while emphasizing the importance of diversity in the industry. After completing the course, agents will be eligible for the AHWD certification and will have a business plan to help them serve all types of clients.

Visit the Fictional Town of Fairhaven Every Realtor® should visit Fairhaven, a fair housing simulation that helps agents identify and work through discriminatory situations in the real estate industry. The training is free for members and will provide customized feedback participants can use in everyday business practices.

Realtor® L.E.A.D.—Diversity, Equity, and Inclusion (DEI) Course This course through the Center for Realtor® Development helps Realtors® understand DEI concepts and the social psychology behind them. After seven modules, you’ll gain an understanding of how to be a DEI leader, the difference between equality and equity, and more.

ONLINE RESOURCES TO EXPLORE Explore the National Museum of African American History & Culture With its Searchable Museum digital initiative last year, people around the world can visit the Smithsonian’s National Museum of African American History and Culture from the comfort of their own home. Enter its permanent exhibit, Slavery & Freedom 1400-1877, for an in-depth experience about the history of slavery and freedom.

Attend Virtual Presentations Throughout the Month The Library of Congress, Smithsonian Institute, and more are hosting virtual events to educate the public about institutionalized racism, civil rights leaders, and more. Click here for the calendar of events.

A Snapshot of Race and Home Buying in America The National Association of Realtors® examined homeownership trends of different racial groups in the past 10 years. It covers minority groups and where they live, affordability by race, home financing and race, and more.

BOOKS TO READ Erasing Institutional Bias: How to Create Systemic Change for Organizational Inclusion Tiffany Jana and Ashley Diaz Mejias explore how institutional bias is in every industry from education to healthcare to government. Their novel focuses on the workplace and helps readers challenge biases through activities and new practices.

Small Great Things Jodi Picoult’s number one New York Times Bestseller novel, Small Great Things, tackles race and privilege in America. Ruth Jefferson is a labor and delivery nurse faces a serious moral dilemma after being reassigned from a newborn case because the parents are white supremacists. The book confronts racism in healthcare, the judicial system, and more.

The Color of Law This book dives into the history of American cities and they came to be racially divided. The story begins in the 1920s with racial zoning as African Americans migrated from the south to the north and moves through time covering post-World War II, the Fair Housing Act of 1968, and more. Listen to this book in the National Association of Realtors® library.

Designated REALTOR® | February 2022 | 5

DO YOU HAVE A STUDENT IN YOUR LIFE?

Encourage them to apply for a 2022 scholarship from the NJ Realtors® Educational Foundation.

APPLICATIONS ARE DUE ON APRIL 8, 2022, 5:00 P.M. Applicants must be a member, or a relative of a member of New Jersey Realtors® or a board/association staff member who resides in New Jersey.

Students are eligible for a scholarship if they are a high school senior who will be attending an undergraduate program or are currently enrolled in an undergraduate program. Students enrolled at a NJ community college can also apply.

njrealtorsef.com