TurpinRealtors.com/Reports
During the first quarter of 2022, the residential real estate market in north central New Jersey remained extremely active, even as it moderated from the dizzying heights of 2021. Despite higher interest rates and increased uncertainty both at home and abroad, buyer activity remained brisk, and properly priced homes in most price ranges continued to see very high demand. While the record low supply that was nearly ubiquitous throughout our market in 2021 has begun to increase, inventory remains historically low.
For the year ended December 2021, almost all of the 39 towns in our study posted less than one month’s supply in the under-$1 million segment. By the end of the first quarter this year, 23 of the 39 towns studied (59%) exceeded one month’s supply, if only marginally, and most remained well below the 6-month supply we expect in a balanced market. This change, although minimal, was welcomed by homebuyers during the first quarter, while sellers continued to enjoy plenty of demand.
In all but a handful of the 39 towns we report on, unit sales declined during the first quarter, versus the same period in 2021. As closings are traditionally slowest during this time of year, this data may simply reflect a return to pre-pandemic seasonality in the market. Second-quarter results will be key to understanding whether the market is normalizing, or if we are experiencing a more pronounced slowdown.
Prices continued to appreciate across our market during the first quarter, due entirely to the combination of persistent demand and low inventory. As compared to the same quarter last year, all but three towns in our report posted increases to their median sale price, average sale price, or in many cases both. As long as inventory remains well below 6 month’s supply, we expect prices to continue to rise.
Lastly, we welcome steady and continued improvement in unit sales for homes priced over $1 million, which has been noted over the past few quarters. This activity bodes well for the long-term health of an important segment in our regional real estate market.
This market remains exciting and dynamic, and the knowledge and guidance of a dedicated real estate professional have never been more valuable. At Turpin we take pride in providing unsurpassed service and expertise to our clientele. As always, I welcome you to call on one of our capable agents to help you assess the particulars of your unique situation.
See the data → TurpinRealtors.com/Reports