COMMENTARY

2022 was another banner year for real estate in north central New Jersey. The robust market that developed as a result of the pandemic continued during the first half of 2022, while the second half of the year was marked by a significant moderation in home sales across the board. During the third and fourth quarters, activity appears to have normalized, with transactions occurring at about the same rate they had in the years preceding the pandemic. However, inventory remains remarkably low—in most cases between one-quarter and one-third of pre-pandemic levels.

Demand Remains

While the rapid rise in interest rates during 2022 undoubtedly sidelined many buyers, we continue to observe strong buyer energy across most market segments. This demand reflects renewed interest in our area and has thus far helped to maintain home prices even in a slowing market.

Significant Shortage of Homes for Sale

In contrast to the four to six months supply of homes that represents a balanced market, all but one town in this report had a year-end supply below two months for homes priced under $1 million, and most of those towns had supply of just one month or less. In the popular $1-2 million range, average months supply was 2.3, as compared to almost 9 months supply during the same period in 2019. As spring is traditionally a time when the greatest number of homes come to market, the months ahead will be a harbinger of the year to come.

A Healthier Market Overall

Regardless of how long it takes for inventory levels to return to balance, we believe that our market is healthier than it has been in a long time. The pandemic introduced countless new homeowners to our region and they have brought vitality and appreciation for all that New Jersey offers. These newly minted Garden State residents have undoubtedly shored up the foundation of our real estate market for years to come.

Because trends vary greatly from town to town, and even within the same town, this report contains aggregated county-level data in addition to granular results for 39 municipalities in our region. With that in mind, I invite you to reach out to one of our knowledgeable sales agents who would be pleased to explain exactly what is happening in your neighborhood and arrange for you to receive regular updates via email.

John Turpin, President