2021 END OF YEAR MARKET RECAP BY ERIN McFEETERS
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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
