April Data Reveals Spring Market with Potential to Cool

Mortgage interest rates are on the rise again, which could mean a reduced pool of eligible buyers for the continued low inventory throughout the state. The median sales price for all properties in New Jersey for April was up to $420,000, up 9.1% over last April, according to New Jersey Realtors, the trade group representing the more than 61,000 Realtors in the state.

Inventory remains low, with just 14,886 single family homes for sale in April, a 22.5% decline over April 2021 when there were 19,217 for sale. The median sales price for a single family home in April hit $460,000, which coupled with higher interest rates, is pushing some potential buyers to wait. According to Freddie Mac, the average 30-year fixed mortgage rate was 5.1% as of May 26, which is still low when you compare it to the all-time high of 18.63% in 1981. However, April 2021 saw an average 30-year fixed mortgage rate of 2.95%, according to Freddie Mac, so buyers in the marketplace are likely having to adjust for the increase.

“The increase in mortgage rates will likely translate to a slow down of the market to some degree,” said 2022 New Jersey Realtors President Robert White. “This could mean competition for homes, especially in this continued low inventory market, could decrease slightly, but we’re still seeing multiple offers and quick sells at present.”

There were 9,521 new listings for single family homes in April, down 15.6% over last year. Pending sales are also down year-over-year, with just 6,836 accounted for last month. Closed sales dropped almost 16% from last year, with 5,848 recorded for the month. The percent of list price received sits comfortably above 100% at 104.2% and homes were on the market an average of just 32 days in April.

Even with housing prices on the rise, the majority of New Jersey Realtors members, when surveyed in April, said their market is more active than last year, with an average of seven offers on their seller client’s property. More than 40% of respondents did say they expect housing prices to decrease in their area a year from now. Significantly, 83% of respondents reported having residential real estate clients postpone moving or selling because they could not find alternative housing in their price range.

For the full reports, please visit njrealtor.com/data.

New Jersey Realtors is the voice of real estate for New Jersey. It is a non-profit organization serving the professional needs of nearly 61,000 Realtor and Realtor-Associate members engaged in all facets of the real estate business. In addition to serving the professional needs of its members, NJ Realtors is dedicated to enhancing the ability of its members to conduct their business successfully while maintaining the preservation of private property rights. Realtor is a registered collective membership mark, which may be used only by real estate professionals who subscribe to the Realtor organization’s strict Code of Ethics and are members of the national, state and local Realtor organizations. For more information, visit njrealtor.com.

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