Low Inventory Continues to Fuel Higher Prices

Hearty buyer demand throughout the state has been tempered only by the continued lack of inventory across all categories in May, according to housing data from New Jersey Realtors. Prices continue to push higher as the available housing stock drops lower. Across the state, the median sales price for a single family home in May was $435,000, a 24.3 percent increase, equal to a jump of $85,000 over last May. Still, buyers are undeterred, fueled by low mortgage rates that help offset the affordability issue.

Houses have been moving fast—an average of just 34 days on the market in May 2021—which is down 44.3 percent from last May. Notably, new listings are up both for May and year-to-date, which, coupled with easing pandemic restrictions, suggests there could be a slight uptick in homes for sale in the next few months.

Closed sales were up 26.6 percent from last May, with 6,960 closing last month. The pipeline remains full, as well, with 8,998 pending sales for the month, a 20.7 percent increase over last year.

“We know the conversations about the housing market have been mostly focused around the extreme highs and lows,” said New Jersey Realtors President Jeff Jones. “While we are concerned about affordability, we are confident the market will continue to level out in the coming months and years and want to ensure all who imagine themselves to be homeowners that the American Dream is still within reach.”

With first time buyers responsible for 31 percent of home sales across the country in May, according to the National Association of Realtors, continued affordability for this segment is critical. To combat misinformation throughout the housing market, New Jersey Realtors has launched a series of webinars focused on getting potential buyers presented with honest market information. The Keys the Homeownership series is a free county-by-county webinar providing financial, mortgage, real estate, and state assistance program information to anyone thinking about buying property who has been apprehensive after hearing about a red-hot New Jersey market. The next webinar is July 14 at 6:30 p.m., will last no longer than 45 minutes, and all participants are entered to win a $250 gift card. Learn more at newjersey.realestate/keys.

For the full reports, 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 more than 60,000 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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