Spring Market Fueled By Buyer Demand

Despite a continued inventory crisis, April was a strong month for home sales, with buyer activity remaining high, fueled by continued low interest rates. Throughout the state, there were 10,083 closed sales for the month of April, up 33.4 percent over April 2020, which was the height of the pandemic. The average 30- year fixed-year mortgage rate was 3 percent, as of May 25, 2021, which has helped buyers remain positive in their home searches, despite being limited in their options.

In most areas of the state, properties are moving fast. The percent of list price received passed 100 percent this month, with 101 percent of list price received noted for April 2021, a 2.9 percent increase over April 2020. The average number of days a property was on the market in April was just 43 days, down 29.5 percent from 61 days in April 2020.

Inventory is at historic lows, with just two months of inventory remaining in April, down a staggering 53.5 percent from April 2021, where the market had already been impacted by the ongoing

pandemic. The number of homes for sale throughout the state in April (single-family homes, townhomes and condominiums, and adult community properties) was just 23,680—down 40.9 percent over last year.

Still, buyer activity is high over last year. For 2021 so far—January through April—pending sales are up 36.7 percent to 43,437; closed sales are up 22.6 percent to 37,327; new listings are up 7.3 percent to 51,547; and, notably, the median sales price was up 20 percent to $375,000.

“The numbers validate the story we’ve been hearing over and over,” said 2021 New Jersey Realtors® President Jeff Jones. “But it’s important to remember that a lot of these numbers are comparable to the height of the pandemic last year when a lot of business stalled. As more and more restrictions are lifted and homeowners become more comfortable, we remain hopeful there will be new inventory hitting the market. Even with these hurdles, buyers are attracted to low-interest rates and continue to stay in the market.”

Did You Know?

Did you know New Jersey Realtors ® conducts a quarterly survey about the housing market that we call the Heat Map? The data is collected and then populated on a map of New Jersey. These surveys help add color to the raw housing data figures, but they are only successful if you respond! The next survey will be sent out in the summer—the email comes from American Strategies and we urge you to complete it!

Here are some highlights from the April 2021 survey:

• Economic conditions continue to improve. Almost three-fourths (72 percent) of members now rate current economic conditions as excellent or good. This marks a continued positive shift in economic outlook from the low point in April 2020.

• Inventory is an increasingly serious problem. A broad majority (88 percent) of members see housing inventory as a very serious or serious problem.

• Fewer clients are withdrawing from the market due to COVID-19. Fortyseven percent of members report clients decided to hold off on selling or buying because of Covid-19, down from 85 percent at the beginning of the pandemic.

• Clients are not finding what they want within their price range. Members continue to report less satisfaction with available housing options.

• Members’ personal finances have rebounded. One third (35 percent) of members say they are better off financially than they were a year ago, up from 17 percent last April.

You have full access to the Heat Map with your membership—learn more at njrealtor.com/heatmap.

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