2021 housing market hit price highs, inventory lows – The Monmouth Journal

By Colleen King Oliver

MONMOUTH COUNTY — When it comes to year-over-year gains and losses in the housing market, 2021 was one for the record books. The National Association of Realtors reports existing home sales are on pace to hit their highest level in 15 years, with an estimated 6 million homes sold in 2021.

In New Jersey, there was a double digit percentage increase for the median sales price, which was compounded by high buyer demand and low inventory.

“The last two years have been astounding for the housing market in the state,” said 2022 President Robert White. “We have seen extremes in prices, competition and inventory. Despite all the challenges this market brought, New Jersey Realtors continued to guide their clients to the American Dream of homeownership.”

The total market median sales prices hit new heights in 2021 — with that price clocking in at $400,000, a 14.3 percent increase over 2020.. While the prices climbed higher, so did buyer demand. Year-to-date, homes remained on the market for 37 days and received 101.3 percent of the list price year-to-date in the total market.

There were 155,901 new listings in total in 2021, down 5 percent over 2020, and just 18,957 in December, a decrease of 35 percent compared to December 2020. Low inventory will likely continue to keep prices high in 2022.

As of Jan. 20, according to Freddie Mac, the 30-year mortgage interest rate was 3.56 percent. While this rate is higher than rates seen in the past two years, it’s lower than the five-year average of 3.7 percent. Percentage rate increases are expected in 2022 from the Federal Reserve and the possibility for already high buyer demand to increase prior to those rate raises is possible.

Homes were in demand in this market segment, sitting for just 36 days and receiving 101.8 percent of the list price year-to-date. Single family closed sales increased just 0.6 percent in 2021 with 90,325 transactions, while pending sales dropped 4.7 percent and new listings dropped 7.5 percent in 2021.

The townhouse-condo market saw increases in every major category in 2021. The median sales price was up 8.8 percent to $310,000, there were 18.1 percent more closed sales than in 2020, and new listings were up one percent compared to 2020. The adult community market saw growth in 2021, with the median sales price reaching nearly $280,000 and 2.3 percent more closed sales than 2020.

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