Year-end Housing Data Shows Market Softening

Rising interest rates, low inventory, and climbing prices have cooled the market in 2022, with closed sales down 17.8 percent over 2021, according to the year-end data reports from New Jersey Realtors®.

“The 2022 market has softened due to the rise in interest rates and elevated home prices,” said 2023 New Jersey Realtors® President Nick Manis. “But there’s still buyer interest and activity on the inventory that is available.”

Closed sales for single-family homes were down 18.6%, with 73,613 units sold during the year, compared to 90,416 sold in 2021. The median sales price for single family homes rose 8.7% to $473,000. Demand remains in this market sector with homes receiving 102.5% of the listing price and are on the market for an average of just 34 days.

The townhouse/condo market saw a similar decrease in closed sales of 17.8% to 25,214. Units were on the market for an average of just 35 days during 2022, a decrease of 12.5% over 2021. The median sales price also rose in this category, up 7.9% to $340,000.

In the adult community category, there were 7,601 closed sales in 2022 with a median sales price of $315,000, a 12.5% increase over 2021. New listings in adult communities saw little to no change in 2022 with just a 1.5% decrease in new units for sale.

Inventory remains a concern across the board, with just 13,595 single family homes for sale in the month of December in 2022, a decrease of 9.8% over an already-low 15,066 units for sale in 2021.

While mortgage interest rates are higher than they were a year ago, Freddie Mac reported another drop at the end of January with the 30-year rate coming in at 6.13%. This could be a plus for more first-time buyers to enter the market and for sellers to consider listing their home knowing they can afford a new home.

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