Greater Princeton, NJ is a region located in central New Jersey, encompassing the town of Princeton and surrounding areas. It is home to prestigious universities such as Princeton University and Rider University, as well as several research institutions, including the Institute for Advanced Study and the Princeton Plasma Physics Laboratory. The region offers a diverse range of cultural, recreational, and culinary experiences, including museums, parks, theaters, and restaurants. It is also conveniently located within easy access to major metropolitan areas such as New York City and Philadelphia.
Small World Coffee is bringing back the Love Show, a month-long community art show that will be on display at the Witherspoon Street coffee shop in Princeton in February.
Artists can submit entries for the curated show until Dec. 15. About 40 to 50 artists will be selected for the show. Artists are asked to submit a piece that reflects on their relationship with the word “love”. You can submit images of your art online to apply to have your work displayed in the show.
I know, I know. We’re barely into the spring, and here we are talking about what the housing market might be like in 2022. Bear with me. There’s a method to the madness.
Right now, housing market inventory is still woefully low in many cities across the country, while competition remains high. As a result, a lot of would-be home buyers are considering postponing their purchases until next year. The idea is that home-buying conditions might improve in the near future, compared to how things are right now.
This leaves a lot of folks wondering: What will the U.S. real estate market look like in 2022?
There’s a lot we don’t know about future housing conditions, and a lot of variables that could change between now and then. (Just look at all of the curveballs life threw at us during 2020!) But what we can do is examine current housing-related trends and offer a bit of data-based speculation.
With that in mind, here’s what we think the real estate market will be like in 2022.
Higher mortgage rates. Higher home prices. Lingering inventory problems. Those are just a few of the trends we expect to see within the U.S. housing market in 2022. Here’s a closer look at these and other factors that could shape the real estate scene next year.
Last year (2020) was a big one for the nation’s real estate market. Home buyer demand surged, despite a global pandemic and economic slowdown. Record-low mortgage rates contributed to this, along with a newfound appreciation for homeownership.
Demand among buyers remains strong today, as we move into the spring of 2021. But what about next year? What will the real estate market look like in 2022, from a demand perspective?
We expect to see less demand among home buyers in 2022, and for a number of reasons.
For one thing, mortgage rates are widely expected to be higher next year than they are right now. (See point #2 below.) One forecast predicted that the average rate for a 30-year fixed home loan could climb to 3.6% by the end of this year. That’s quite a bit higher than where we are right now, in late March, with rates averaging around 3.0%.
If borrowing costs do creep upward over the coming months, as predicted, it will likely have a dampening effect on home-buyer demand. So that’s one way the real estate market might change in 2022. There could be less demand from buyers and therefore fewer sales, when compared to 2020 and early 2021.
A recently issued forecast from the Mortgage Bankers Association predicted that mortgage rates will be higher in 2022 than they are right now. And they might be substantially higher than the record low we saw during the first week of January 2021.
At the start of this year, the average rate for a 30-year fixed mortgage loan dropped to an astoundingly low 2.65%. That was the lowest weekly average in 50 years of record-keeping, a noteworthy event to say the least. This partly accounts for the soaring demand among home buyers, during the latter half of 2020 and into 2021.
On March 18, 2021, the research team at Freddie Mac wrote: “As expected, mortgage rates continued to inch up but are still hovering around three percent, keeping interested buyers in the market.”
Going forward, a rise in rates could cool the red-hot housing market. If borrowing costs climb over the coming months, we could see a drop in demand from home buyers. This is another key factor that could affect the real estate market in 2022. And when you add in the prospect of steadily rising home values, the cooling effect could be even greater.
So let’s talk about home values next.
It’s hard to believe that home prices in the U.S. rose steadily throughout 2020, despite the economic wreckage caused by the coronavirus pandemic. But that’s exactly what happened. House values in most U.S. cities crept upward throughout last year and into 2021.
According to the real estate data company Zillow, the median home value in the U.S. rose by around 10% over the past year or so. (That’s from March 2020 to March 2021, roughly.) Some of the hottest housing markets, like Boise and Austin, have experienced even greater price growth over the past year or so.
Which begs the question: What will the real estate market be like in 2022, from a home-price perspective?
Based on current conditions, we expect to see continued price growth in most U.S. cities during 2022. But we probably won’t see the tremendous gains that have been recorded over the past 12 to 18 months.
Many housing markets across the country are becoming unaffordable for an ever-growing number of residents. This could have a cooling effect in the future, as we’ve seen many times in the past. When fewer and fewer residents can afford to buy a home in a particular area, it reduces demand. This in turn can slow home-price growth.
But despite a potential slowdown in price growth, house values will likely continue rising to some degree in most local housing markets. As a result, a strong argument could be made for buying a home sooner rather than later. Those who postpone their purchases until later in 2021, or push it into 2022, could encounter higher prices and mortgage rates.
Housing supply shortages have generated countless headlines over the past couple of years. This trend could present challenges next year as well. In fact, supply constraints could be one of the most important factors to shape the U.S. real estate market in 2022.
According to a recent housing market report by Realtor.com, inventory levels continue to drop across much of the U.S. They reported a 50% decline in the number of homes for sale in March 2021, compared to a year earlier. To state it differently: the nation’s housing market shrank by half in just one year’s time. That is a staggering reduction in the number of homes for sale, especially when you consider that inventory conditions were already tight a year ago.
To quote the March 2021 Realtor.com report:
“Total active inventory continues to decline, dropping 51% year-over-year in the week ended March 6. With buyers active in the market despite, or perhaps because of, the uptick in mortgage rates, homes are selling quickly and the total number actively available for sale at any point in time continues to decline.”
With luck, we could see a gradual rise in inventory as we move further into 2021. In some housing markets across the U.S., new construction could bring much-needed relief for prospective home buyers. Even so, it appears likely that supply constraints will continue to be a dominant issue for the U.S. real estate market well into 2022.
As we reported in a previous story, a lot of housing markets across the country currently favor renting over buying. At least in terms of monthly costs.
Nationwide, rental prices have moved in two directions over the past year or so. In some of the hottest housing markets, where population growth is driving demand, rents have increased. In other cities, rents have declined significantly.
But overall, home-price appreciation has outpaced rental increases over the past year. This means that more and more housing markets are starting to favor renting over buying, for cost-conscious residents. This trend could continue into 2022 as well, especially if home values continue to climb steadily as expected. The bottom line here is that, in many U.S. cities, renting could become a more attractive option for local residents.
So there you have it, our “best guess” as to what the U.S. real estate market will look like in 2022. Home prices will probably continue to climb in most cities, though possibly at a slower pace. Mortgage rates could be higher next year than they are now. Renting could become more attractive in the months ahead. And most housing markets will continue to grapple with supply shortages.
In short, the U.S. housing market could continue to favor sellers over buyers for the foreseeable future.
Disclaimer: This article contains housing-related predictions that are based on current trends and conditions. Such projections are the equivalent of an educated guess and should be treated as such. No one can predict future economic or real estate trends with complete accuracy.
High-stakes bidding wars. All-cash offers. Limited supply.
After two years of scorching growth in the U.S. housing market, will there be a cool-down and possibly a fall in sales and prices in 2022, along with a return to some normalcy?
Um, not exactly, several housing experts tell USA TODAY.
The median sales price for a single-family home in Somerset County during October was $541,000. That’s an increase of 5.1% compared with October 2020, according to a USA TODAY Network localized analysis generated with data from Realtor.com.
The number of houses sold fell by 24.3% from a year earlier. A total of 352 houses were sold countywide during the month of October. During the same period a year earlier, 465 single-family homes were sold.
Housing market:Will NJ home prices keep soaring in 2022? Here’s what real estate experts expect
Check it out:Stone Mansion on Frick Estate in Alpine finally sells for $27.5M after decade on market
Real estate sales can take weeks or months to be recorded and collected. This is the latest data made available through Realtor.com to the USA TODAY Network.
Condominiums and townhomes sold in October had a median sales price of $320,000. That figure represents a 16.4% increase year-over-year. In Somerset County, 96 were sold, down 12.7% from a year earlier.
Information on your local housing markets is available through the USA TODAY Network, with more data from Realtor.com.
The top 10% of the properties sold had prices of at least $999,099, up 17.5% from a year before.
In October, 44 properties sold for $1 million or more: 41 single-family homes and three condominiums or townhomes.
The median home sale price — the midway point of all the houses or units sold over a period of time — is used in this report instead of the average home sale price because experts say the median offers a more accurate view of what’s happening in a market. In finding the average price, all prices of homes sold are added and then divided by the number of homes sold. This measure can be skewed by one low or high price.
The USA TODAY Network is publishing localized versions of this story on its news sites across the country, generated with data from Realtor.com. The story was written by Sean Lahman.
The median sales price for a single-family home in Essex County during October was $520,000. That’s a decrease of 0.7% compared with October 2020, according to a USA TODAY Network localized analysis generated with data from Realtor.com.
The number of houses sold fell by 21.6% from a year earlier. A total of 533 houses were sold countywide during the month of October. During the same period a year earlier, 680 single-family homes were sold.
Real estate sales can take weeks or months to be recorded and collected. This is the latest data made available through Realtor.com to the USA TODAY Network.
Condominiums and townhomes sold in October had a median sales price of $355,750. That figure represents a 5.1% decrease year-over-year. In Essex County, 106 were sold, up 10.4% from a year earlier.
Information on your local housing markets is available through the USA TODAY Network, with more data from Realtor.com.
The top 10% of the properties sold had prices of at least $999,999, down 6.1% from a year before.
In October, 64 properties sold for $1 million or more: 64 single-family homes.
What did that property sell for?:Browse NJ real estate data, including home sales
For subscribers:Will NJ home prices keep soaring in 2022? Here’s what real estate experts expect
The median home sale price — the midway point of all the houses or units sold over a period of time — is used in this report instead of the average home sale price because experts say the median offers a more accurate view of what’s happening in a market. In finding the average price, all prices of homes sold are added and then divided by the number of homes sold. This measure can be skewed by one low or high price.
The USA TODAY Network is publishing localized versions of this story on its news sites across the country, generated with data from Realtor.com. The story was written by Sean Lahman.
The median sales price for a single-family home in Ocean County during October was $413,360. That’s an increase of 16.4% compared with October 2020, according to a USA TODAY Network localized analysis generated with data from Realtor.com.
The number of houses sold fell by 25.8% from a year earlier. A total of 1,231 houses were sold countywide during the month of October. During the same period a year earlier, 1,660 single-family homes were sold.
Real estate:Will the Jersey Shore housing market stay hot in 2022? Experts say maybe not
Tiny home life:Barn Swallow in Jackson will build you a tiny house
Real estate sales can take weeks or months to be recorded and collected. This is the latest data made available through Realtor.com to the USA TODAY Network.
Condominiums and townhomes sold in October had a median sales price of $235,000. That figure represents a 17.5% increase year-over-year. In Ocean County, 205 were sold, down 37.9% from a year earlier.
Information on your local housing markets is available through the USA TODAY Network, with more data from Realtor.com.
The top 10% of the properties sold had prices of at least $820,000, up 13.9% from a year before.
In October, 80 properties sold for $1 million or more: 74 single-family homes, two condominiums or townhomes and four other properties.
The median home sale price — the midway point of all the houses or units sold over a period of time — is used in this report instead of the average home sale price because experts say the median offers a more accurate view of what’s happening in a market. In finding the average price, all prices of homes sold are added and then divided by the number of homes sold. This measure can be skewed by one low or high price.
The USA TODAY Network is publishing localized versions of this story on its news sites across the country, generated with data from Realtor.com. The story was written by Sean Lahman.
The median sales price for a single-family home in Warren County during October was $315,000. That’s an increase of 10.5% compared with October 2020, according to a USA TODAY Network localized analysis generated with data from Realtor.com.
The number of houses sold fell by 3.4% from a year earlier. A total of 199 houses were sold countywide during the month of October. During the same period a year earlier, 206 single-family homes were sold.
Check it out:Stone Mansion on Frick Estate in Alpine finally sells for $27.5M after decade on market
Hot market:Will NJ home prices keep soaring in 2022? Here’s what real estate experts expect
Real estate sales can take weeks or months to be recorded and collected. This is the latest data made available through Realtor.com to the USA TODAY Network.
Condominiums and townhomes sold in October had a median sales price of $229,000. That figure represents a 15.1% increase year-over-year. In Warren County, 18 were sold, down 25% from a year earlier.
Information on your local housing markets is available through the USA TODAY Network, with more data from Realtor.com.
The top 10% of the properties sold had prices of at least $500,000, up 14.8% from a year before.
In October, no properties sold for $1 million or more.
The median home sale price — the midway point of all the houses or units sold over a period of time — is used in this report instead of the average home sale price because experts say the median offers a more accurate view of what’s happening in a market. In finding the average price, all prices of homes sold are added and then divided by the number of homes sold. This measure can be skewed by one low or high price.
The USA TODAY Network is publishing localized versions of this story on its news sites across the country, generated with data from Realtor.com. The story was written by Sean Lahman.
The median sales price for a single-family home in Sussex County during October was $337,000. That’s an increase of 14.6% compared with October 2020, according to a USA TODAY Network localized analysis generated with data from Realtor.com.
The number of houses sold rose by 20.3% from a year earlier. A total of 308 houses were sold countywide during the month of October. During the same period a year earlier, 256 single-family homes were sold.
Trends:Will NJ home prices keep soaring in 2022? Here’s what real estate experts expect
Check it out:Stone Mansion on Frick Estate in Alpine finally sells for $27.5M after decade on market
Real estate sales can take weeks or months to be recorded and collected. This is the latest data made available through Realtor.com to the USA TODAY Network.
Condominiums and townhomes sold in October had a median sales price of $190,000. That figure represents a 6.7% increase year-over-year. In Sussex County, 43 were sold, up 53.6% from a year earlier.
Information on your local housing markets is available through the USA TODAY Network, with more data from Realtor.com.
The top 10% of the properties sold had prices of at least $575,000, up 9.7% from a year before.
In October, four properties sold for $1 million or more: four single-family homes.
The median home sale price — the midway point of all the houses or units sold over a period of time — is used in this report instead of the average home sale price because experts say the median offers a more accurate view of what’s happening in a market. In finding the average price, all prices of homes sold are added and then divided by the number of homes sold. This measure can be skewed by one low or high price.
The USA TODAY Network is publishing localized versions of this story on its news sites across the country, generated with data from Realtor.com. The story was written by Sean Lahman.
The median sales price for a single-family home in Essex County during October was $520,000. That’s a decrease of 0.7% compared with October 2020, according to a USA TODAY Network localized analysis generated with data from Realtor.com.
The number of houses sold fell by 21.6% from a year earlier. A total of 533 houses were sold countywide during the month of October. During the same period a year earlier, 680 single-family homes were sold.
Real estate sales can take weeks or months to be recorded and collected. This is the latest data made available through Realtor.com to the USA TODAY Network.
Condominiums and townhomes sold in October had a median sales price of $355,750. That figure represents a 5.1% decrease year-over-year. In Essex County, 106 were sold, up 10.4% from a year earlier.
Information on your local housing markets is available through the USA TODAY Network, with more data from Realtor.com.
The top 10% of the properties sold had prices of at least $999,999, down 6.1% from a year before.
In October, 64 properties sold for $1 million or more: 64 single-family homes.
What did that property sell for?:Browse NJ real estate data, including home sales
For subscribers:Will NJ home prices keep soaring in 2022? Here’s what real estate experts expect
The median home sale price — the midway point of all the houses or units sold over a period of time — is used in this report instead of the average home sale price because experts say the median offers a more accurate view of what’s happening in a market. In finding the average price, all prices of homes sold are added and then divided by the number of homes sold. This measure can be skewed by one low or high price.
The USA TODAY Network is publishing localized versions of this story on its news sites across the country, generated with data from Realtor.com. The story was written by Sean Lahman.
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 homes for sale 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.
For the full report, visit njrealtor.com/data.
