Trenton, N.J. (Jan. 31, 2020)—Demand outweighed supply in the 2019 housing market, according to the year-end numbers provided by New Jersey Realtors. The inventory of homes for sale in the state was down more than 20 percent in December 2019, a continuation of what was seen in 2018.

The demand of buyers outmatched seller activity this year, leaving a slightly unbalanced, but nonetheless strong, market. Affordability has improved with lower mortgage rates, which has helped to offset higher prices. The big question for 2020 is will higher sales prices entice homeowners to list and increase available inventory on the market.

As the number of homes for sale decreased, prices increased, though not at the same rates. The median sales price for all properties in 2019 was $307,000, up 5.9 percent over 2018. Properties are moving at the same rate as 2018, 64 days on the market, and agents report multiple, fast offers on desirable listings.

“We are, of course, concerned that buyer demand slightly outpaced seller activity last year,” said Angela Sicoli, 2020 President of New Jersey Realtors. “But much of what we are seeing in the market is positive—properties moving quickly at competitive rates. We consider 2019 to be a successful year for housing.”

Closed sales for 2019 stayed static, with 117,343 sales in 2019, a hair above the 117,178 sales in 2018. Pending sales are up 3.3 percent year-over-year, a promising sign. Still, along with tight inventory, new listings dipped a bit, down 1.6  percent to 179,306.

Single family homes had a 4.8 percent rise in median sales price, sitting at $330,000 for 2019. But this market segment was also hit hardest by tight inventory, dropping 22.8 percent for December 2019, with just 25,717 homes for sale that month.

New Jersey Realtors is the voice of real estate for New Jersey. It is a non-profit organization serving the professional needs of more than 56,000 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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