June is a great time to review the market stats since we are halfway through the year. Here is what we are seeing in the market here in Northern New Jersey.
Despite interest rates hovering just under 7% and inflation being on a steady 11 month decline, housing prices have not dropped. In New Jersey, the average price of a home was up by about 4% in April year over year. In the towns we cover prices are up across the board. In S. Orange the average price of a home rose modestly by 2.8% and in Maplewood by .5% YTD over 2022. In other towns the increase was much greater- ranging anywhere from 6.5%
(Summit and West Orange) to 17% (Bloomfield and Millburn).
What is stunning is the huge decrease in sales volume. In the US, existing home sales are down by about 37% over last year. In New Jersey the number of closed sales was 24% lower this April than in April of last year. In S. Orange YTD the number of sold units has plummeted by 22% and in Maplewood by 29%.
Why the drastic reduction in sales? Sellers with no mortgage or a low rate mortgage see their financial position as an asset that they do not want to lose. They find the idea of purchasing a home at a higher rate than they have to be very challenging.
Fewer homes are coming on the market creating an inventory shortage. In July 2021, there were around 51,000 homes on the market in NJ. In April 2023 there were 13,000.
We see buyers, particularly in the million plus range, being very selective and taking their time as their purchasing power has declined with higher interest rates. Homes in the $400-800,000 range continue to see a lot of demand.
Here are our market reports for Northern NJ towns including Maplewood, South Orange, West Orange, Montclair and Short Hills.
Do you have a real estate question on your mind? Do not hesitate to email me at [email protected]. There’s nothing more exciting for me than NJ real estate and I’d be happy to share my expertise with you.
The Allison Ziefert Real Estate Group is a top producing real estate team based at Compass in Short Hills, NJ. We are local market experts, specializing in real estate and homes in Maplewood, South Orange, Millburn/Short Hills, Montclair/Glen Ridge, West Orange, Morristown and the surrounding NJ towns. We’ve also got you covered coast to coast with the best connections to top agents around the country in any market you are exploring. We are driven by earning great testimonials and referral business from happy clients. You can read our reviews here.