The US housing market began the year in a state of rebalance, with many buyers and sellers remaining cautious while they wait to see where the market is headed. Nationally, pending sales rose 2.5% month-to-month, marking the first increase since May, while sales of existing homes fell 1.5% as of last measure, according to the National Association of Realtors® (NAR). Demand for housing persists, but higher mortgage interest rates have cut into housing affordability, with total home sales down 17.8% last year compared to 2021.
- Single Family Closed Sales were down 33.1 percent to 1,159.
- Townhouse-Condo Closed Sales were down 41.6 percent to 271.
- Adult Communities Closed Sales were down 2.9 percent to 34.
- Single Family Median Sales Price increased 2.6 percent to $485,000.
- Townhouse-Condo Median Sales Price increased 1.6 percent to $310,000.
- Adult Communities Median Sales Price increased 11.3 percent to $445,000.
As sales slow, time on market is increasing, with the average home spending 26 days on market as of last measure, according to NAR. Seller concessions have made a comeback, giving buyers more time and negotiating power when shopping for a home. Although home prices remain high, mortgage rates declined steadily throughout January, falling to their lowest level since September, sparking a recent surge in mortgage demand. Lower rates should aid in affordability and may soon lead to an uptick in market activity ahead of the spring selling season.
NCJAR Total Market Overview
Morris County
Somerset County
Union County
Essex County
Passaic County