NEW JERSEY—Traditionally, a very cold January would have dampened prospectors looking for New Jersey homes, but according to New Jersey Realtors January market data, it seems like nothing can stop the pandemic push for properties.
Inventory, while customarily on the lower end during the winter, is the lowest it’s been in months. Only 23,011 single family homes, townhomes and condominiums, and adult community properties were available for sale in the month of January. Last January, that number was 41,005.
Low inventory and high demand continue to push prices higher. The rush to New Jersey doesn’t seem to be slowing down, despite infection rates dropping. The median sales price for all properties in January was $370,000, a marked 19.7 percent increase over January 2020. As the state approaches the one-year anniversary of the pandemic’s arrival in New Jersey, more and more potential buyers are being lured to either move into the state from neighboring cities or are ready to upgrade their current New Jersey home.
"We’re still in uncharted territory," said New Jersey Realtors 2021 president Jeff Jones. "We have yet to see to the full impact of the pandemic. The continued widespread availability of a vaccine will certainly encourage potential sellers to list which will hopefully increase the currently depleted housing inventory."
Closed sales were up 17% compared to last January, despite new listings down 21.4%, and the number of homes for sale down a staggering 43.9%.
Affordability remains a concern. As prices continue to rise, the first-time homebuyer market segment will be impacted the most. However, demand drives on, with 9,823 pending sales in the pipeline for January, up 17.4% over last year, a clear indicator the desire for New Jersey is going to outlast the winter freeze.
Sustainability of higher prices is likely here to stay for the short-term due to Freddie Mac’s prediction of low mortgage rates for 2021, but talks of a housing bubble lack evidence as today’s market differs greatly in viability from the market correction of 2008.
To view New Jersey Realtors reports visit njrealtor.com/data.