DearNeighbor,

We at the Sue Adler Team firmly believe that knowledge is the foundation for empowered decision-making. With that, we present to you our annual 2022 Real Estate Market Review. Each year since 2015, we extract and comb through the local market data from the previous 12 months.We analyze it, review the trends, and provide you with a comprehensive report. By sharing this data with the community, we aim to equip you with the context you need to accomplish your real estate goals and stay informed of local real estate trends.

2022 was another record-breaking year in real estate within the Midtown Direct train line towns. Inventory was down 40% since 2019 and 10% since last year, continuing to set the tone for the market. Low inventory, coupled with high demand, caused prices to rise throughout the first half of the year and ultimately stabilize near the peak, during the summer, fall and winter months. The average home sale price in 2022 marks the highest ever in GMLS history. From 2021 to 2022, it climbed by $127,563 with the average home selling for $1,184,229. Overwhelming demand also paved the way to a lower average days on market and a higher average original list-to-sale price ratio. The average days on market (including attorney review) totaled 24 (down six from the year prior) and the average list-to-sale price ratio rose by 4% to a whopping 106%. In other words, a buyer needed to pay, on average, 6% over list price to purchase a home in this competitive

SUE ADLER

market. For Sue Adler Team listings in 2022, our home preparation, pricing, and marketing strategies brought our 105 sellers an average 8% more than their list price.

Spring 2022 was undoubtedly one of the hottest real estate markets on record, with offers flooding in before a home ever hit the market. Lines were forming steadily at open houses, and sellers sat squarely in the driver’s seat. As July and August rolled around, rising interest rates lowered affordability and we witnessed a brief pause that coincided with our typical summer market. This was heightened by buyer fatigue that set in after a challenging spring market. The fall market was similar to the spring, with one major difference: even fewer homes for sale! The inventory available in the fall and now into 2023 is simply not enough to meet the demand, thus keeping our local market very strong for sellers. We are seeing fewer transactions due to, not a lack of buyers, but a lack of sellers!

Most of you have likely seen the news headlines these past six months regarding a national “shifting” real estate market. Interestingly, we are not yet seeing this in our local markets. Why, you may ask, is northern New Jersey bucking national real estate trends? We attribute this to:

1. LIFESTYLE

We are a lifestyle market, meaning buyers looking to move into the Midtown Direct train line towns typically do so for specific lifestyle reasons, including award-winning schools, incredible communities, more space (both interior and exterior), and a desire to be close to their friends and family. Of course, with many companies asking their employees to return to office, even if part time, the easy commute to NYC keeps our train line towns at the forefront of desirability. Because the homes in our towns check all of these boxes, we are the obvious choice for buyers looking to move out of the city.

2. HIGH RENTS

Whether purchasing or renting in the area, the cost of living is high. In other parts of the country renting is a viable option to delay purchasing, especially while interest rates are high. However, rents are at an all-time high, both locally and in Manhattan, leaving many buyers opting to “bite the bullet” and purchase a home and gain their own equity, rather than continuing to pay down their landlord’s mortgage.

3. BUYER & SELLER FINANCIAL STRENGTH

In this competitive market, it is not unusual to see buyers opting to waive mortgage contingencies or purchase homes in as-is condition to set themselves apart. As compared to other parts of the country, more of our sellers have a lot of equity in their homes, positioning them well to downsize or upsize. Also, the cost of construction is high, so purchasing an existing home, even with high mortgage rates, made the most sense in 2022 and continues to for many.

Early 2023 is proving to be another very strong real estate market! Demand is still extremely high, while the number of desirable homes for sale is simultaneously low. If you are thinking of selling, you have NOT missed the market.

In other news, the Sue Adler Team is extremely grateful for the opportunity to serve our local communities. Through our 100th Home Sale Charity program, we were again privileged to donate in 2022 to our local education foundations,volunteer rescue squads, local food banks, Alzheimer's Research, as well as volunteer at Grace Giving in Summit. We will continue the spirit of giving throughout 2023.

We are immensely grateful for the 285 families that trusted us to help them reach their real estate goals in 2022, most of whom were referred to us by clients, friends of clients, word of mouth, and other realtors. We cannot thank you enough! If we have not had the pleasure of meeting you before, we hope to meet you in 2023! Give us a call at 973.949.0306 or email info@sueadler.com to get started!

We are…yours to count on!