Inventory, Affordability Top Housing Market Concerns

Trenton, New Jersey, UNITED STATES


Trenton, N.J., July 29, 2021 (GLOBE NEWSWIRE) -- The first half of 2021 has seen record-setting activity levels for the New Jersey housing market, but continued lack of inventory and concerns over affordability have cooled some buyer activity. According to real estate trade group New Jersey Realtors.

Last June, pandemic restrictions were in full effect and buyer activity was starting to pick up the pace as buyers raced to snag any available homes in their desired markets. In June 2020, the median sales price for a single family home was $355,000, homes were sitting on the market for an average of 62 days, and there was 26,787 single family homes for sale that month. Now, in June 2021, the median sales price for a single family home is $458,675, spending an average of 30 days on the market, and there were just 18,452 single family homes for sale this past month. Fewer homes for sale have markedly increased the rate at which these homes are purchased, as well the price at which they are purchased.

Across the entire market new listings are up 8.8 percent for Q1 and Q2, with 84,622 new listings through June 2021. Pending sales are up 22.4 percent for the same period with 67,741 pending sales, and closed sales rose 28.8 percent to 60,658. In June, all markets saw an average of 102.7 percent of the list price received, supporting the anecdotal evidence of multiple, over-asking price offers that have fueled bidding wars. The median sales price for all of 2021 so far is $385,000, a 20.3 percent increase over Q1 and Q2 from 2020. 

“We have been hearing of some markets experiencing a slight calm,” said 2021 New Jersey Realtors President Jeff Jones. “This could be due to buyer fatigue and a slight increase in inventory, but either way it’s a promising note that a more stable, normal market is in the future.”

Lower affordability is due to less housing stock available and the increased entry level price, but continued and sustained low mortgage rates have offset the financial burden slightly. With an average 30-year fixed mortgage rate of 2.78 percent as of the last week of July according to Freddie Mac, the lower interest rates have eased the burden of higher prices, but not enough to offset the difference completely.

New Jersey Realtors is the voice of real estate for New Jersey. It is a non-profit organization serving the professional needs of over 60,000 Realtor and Realtor-Associate members engaged in all facets of the real estate business. In addition to serving the professional needs of its members, NJ Realtors is dedicated to enhancing the ability of its members to conduct their business successfully while maintaining the preservation of private property rights. Realtor is a registered collective membership mark, which may be used only by real estate professionals who subscribe to the Realtor organization’s strict Code of Ethics and are members of the national, state and local Realtor organizations. For more information, visit njrealtor.com.

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