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 insufficient overall.
“Now I think we are still seeing properties moving, but due to the lack of inventory there just isn’t enough,” he said. “Because again, there are also a lot more buyers in the market these days.”
While that may be true, White said some buyers may be feeling a 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 only to be rejected, that they have this feeling like ‘well, let me wait,'” White said, citing sales still being recorded at no. Anywhere from 7% to 12% above 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 home 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.
What to do in Salem County, New Jersey
New Jersey’s less populous county is remote from most New Jerseyers. Here is a sampling of things to do and enjoy if you choose to take a trip to Salem County.
Look inside the avenue at American Dream
The American Dream mega mall in the Meadowlands is opening a luxury boutique wing that promises to be a must-see experience, and not just for luxury designer brands.