2021 End of Year Market Recap

BY ERIN McFEETERS

After 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 heightsin 2021—prices clocking in at $400,000, a 14.3percent increase over last year. While the prices arestaggeringly high, demand was right there with it.Year-to-date homes sat on the market for 37 days andreceived 101.3 percent of the list price year-to-date inthe total market.

There were 155,901 new listings in total in 2021, downfive percent over 2020, and just 18,957 homes for salein December, a decrease of 35 percent compared toDecember 2020. Low inventory will continue to pushprices up in 2022, which is a plus for sellers, but thelower-than-average mortgage interest rates will keepbuyers 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.