Fall Slowdown in NJ Housing Sales as Prices Rise

On Nov 1, 2023

New Jersey Realtors released its September residential housing data, which points to a fall slowdown as borrowing costs and sales prices continue to rise.

The single-family home median sales price for September was $530,000, which is $55,000 more than September 2022, representing an 11.6% increase; year-to-date median sales prices are up just 5.3%. New listings in the single-family sector were down 18.3%, with just 6,001 homes listed in September. Closed sales were down slightly more, with 5,007 single-family closed sales, a 25.8% decrease over September 2022.

Buyer demand is still high, with the percentage of list price received clocking at 103% in September, a 1.5% increase over this time last year, and homes were on the market for an average of 32 days, representing a 3% decrease over September 2022.

According to Freddie Mac, as of Oct. 26, mortgage rates continued to climb for the seventh week in a row, nearing 8%. Currently, the average 30-year rate in the U.S. is 7.79%.

The townhouse-condo market segment saw a higher increase in the median sales price compared to single-family homes. In September, the median sales price was $400,000, a 15.9% increase over last year. Closed sales were down 22.5% to 1,709 recorded in September. In adult communities, the median sales price increased 4.6% to $335,000 in September, and just 635 closed sales in the month, representing an 11.8% decrease compared to September 2022. For the full state report, visit njrealtor.com/data.

To offset higher borrowing costs and help more first-time buyers enter the market, New Jersey Realtors worked with State Sen. Troy Singleton to expand the New Jersey Housing and Mortgage Finance Agency’s Down Payment Assistance Fund. The program officially launched on Oct. 20, and provides zero-interest, forgivable loans for down payment assistance to first-time homebuyers and additional assistance for first-generation homebuyers. For more information visit nj.gov/dca/hfma/roadhome.

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