Market remains warm, but sales of single-family homes in NJ drop in August

Sales of single-family homes in the Garden State fell more than 10% in August over a year ago, according to the latest data from New Jersey Realtors, but prices remain high for all properties, and sales of Single-family homes closed to date are still up over 13% from this point in 2020.

Interest is still strong, although it has shifted somewhat from the flight to the suburbs and the Jersey Shore that characterized the housing market at the height of the COVID-19 pandemic, said Robert White. , President-elect of NJ Realtors.

Inventories have trended upward quarter after quarter in 2021, White said, but remain generally insufficient.

“Now I think we are still seeing properties moving, but due to the lack of inventory there just isn’t enough,” he said. “

While that may be true, White said some buyers may be feeling a little bit tired right now of outbidding over and over again, and might take a step back from their research.

And not only are they outbid, but they also continue to outbid; NJ Realtors said median selling prices were up 19% year-to-date in all markets.

“They’ve wasted so many opportunities, presenting or writing offer after offer to be turned down, that they have this feeling like ‘well, just let me wait,'” White said, citing sales still being recorded no matter what. where 7 to 12% above the asking price, on average. “While we still see several offers, we no longer see 20, 25 like before, but we still see 12 to 15.”

After long pandemic delays, White said new home starts have finally picked up and are catching up to early 2020 levels as prices for some materials drop and wait times decrease.

But difficulties in securing single-family properties have apparently pushed a lot towards townhouses and condominium units, for which NJ Realtors said sales rose nearly 11% in August compared to the same month in 2020.

“When they couldn’t get an offer accepted after many attempts, they went into the townhouse / condo market, the alternative, because again, remember that a lot of these buyers are first time buyers, ”White said.

Going forward, White expects continued growth across all areas in the fourth quarter and through 2022.

He said there was no “bubble” to burst, unlike the real estate boom of the mid-2000s, and although interest rates may rise, they are still historically low – for now.

Patrick Lavery is the anchor for the New Jersey 101.5 afternoon news. Follow it on Twitter @ plavery1015 or send an email to [email protected]

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