New Jersey Housing Market 2023 Report
What’s the New Jersey Housing Market Like?
Home prices in New Jersey have appreciated 61.2% higher than the national level. Looking back three years at the median price in October 2019 compared to October 2022, prices have increased 37.2% in New Jersey VS 35.8% nationwide.
As of October 2022, the median price for a home in the state was $443,000, which is up 7.9% above last year’s median price. Comparing prices over the last three years, we can see they have decreased -6.2% from the peak of $472,400 in Jun-2022.
Sales volume has also decreased recently. In October 2022, there were 8,490 homes sold in the state of New Jersey, a decrease of -16.0% from the previous month.
Comparing year-over-year, we saw a decrease of -28.0% in sales from October 2021, when there were 11,794 home sales.
The number of sales peak was 14,400 sales in Oct-2020; compared to October 2022’s numbers, we are down -41.0% in the number of homes sold from the peak of the last three years.
It is clear that the recent steep rise in mortgage rates has curved sales activity and shrunk affordability, and the result has been a drop in home prices in New Jersey.
How Does The New Jersey Housing Market Compare to the National Housing Market?
The New Jersey housing market is similar to other markets because supply and demand drive housing prices. Mortgage rates also impact New Jersey in a similar way as the rest of the nation.
New Jersey’s home prices and sales numbers have begun to slow down along with the rest of the country. Differences in the regional economy of some of New Jersey’s metro areas make those markets more vulnerable and others more resilient to the current economics.
The current median price of homes in New Jersey is $443,000 compared to the national median sales price of $397,549. Over the past three years, the median price of homes in New Jersey has increased by 37.2% compared to the national average of 35.7%
New Jersey Metro Areas With The Hottest Housing Markets
The state of New Jersey has seen moderate growth in housing demand in recent years. Consequently, prices have gone up at a good pace. There are some areas within the state that have outperformed others, though. We will look at the cities with the highest increase in the median price year over year.
The top markets with the highest appreciation rate:
- Ventnor City
- Long Branch
- Cliffside Park
Ventnor City is a picture-perfect seaside town on the South Jersey Shore with pristine Atlantic beaches and a rocky shoreline. Ventnor City is tucked in between Margate and Atlantic City. Ventnor City has a population of 9,900 year-round residents (2019), and during summer, it rises to about 17000. This small city is a summer town.
If you want access to big-city facilities while hankering after beach living, the city's accessible location is ideal. Ventnor City, New Jersey, established in 1903, is about 126 miles from New York City and 61 miles from Philadelphia. It's understandable why residents of Ventnor City, New Jersey, call it "Shorely the best"!
Ventnor City’s home prices have been doing quite well over the last few years; in fact, Ventnor City topped the list of cities in New Jersey with the largest increase in prices in 2022, with an increase of 47.6% from the prior year. For 2022, October’s median price was $465,000.
In October of 2022, there 22 homes were sold in Ventnor City, down 27.0% from the same period in 2021.
The median days on the market in October 2022 was 80, which indicates a balanced market by today’s standards. Compared to October 2021, the median days on the market is up 27.0% compared to October 2022.
Hackensack is in Bergen County, with a population of 46,030 as of the 2020 U.S. Census. This location attracted Native American Settlement. Today, this New Jersey neighborhood has become the most ethnically and culturally diverse place in the state.
In recent decades, Hackensack has attracted a large number of immigrants. This community has several city parks, a modern medical facility, a Fairleigh Dickinson University campus, and other attractions.
The Hackensack Real Estate market is currently somewhat competitive. In October 2022, there 32 homes were sold with a median price of $420,000. The median home price in Hackensack has increased 52.2% from October of 2021, while the number of homes sold was 32, a -27.3% decrease compared to the same month the year before.
The median days on the market in October 2022 was 77 and it’s up 1.3% compared to Sept 2021.
Long Branch is a beachfront city in Monmouth County, New Jersey. It is located 50 miles (80 km) south of New York City on the Atlantic Ocean coast. The climate in Long Branch is humid and subtropical.
Long Branch was a major destination for beachgoers along with Asbury Park in years past and enjoyed an upscale reputation among visitors.
Long Branch is considered a somewhat competitive market right now. In October 2022, there 28 homes were sold with a median price of $420,000. The median price in Long Branch was up 52.2% over October of 2021, while the number of homes sold was down -40.4% compared to the same period in 2021.
The median number of days on the market for October 2022 was 117 days which is up 138.8% from October of 2021.
Warren county is the National center - the Southeast corner of New York State, at the mouth of the Hudson River. The county's population increased by 940 (0.9%) from the 108,692 people reported in the 2010 census to 109,632.
Warren County offers a lot of outdoor leisure because roughly 14% of its land is developed urbanly. Country roads are ideal for bicycling, hiking, and driving since they provide many beautiful views, antique shops to browse, farms where you can pick your fresh fruits and veggies, and vineyards where you can sample their offerings.
The real estate market in Warren is considered somewhat competitive. There were 25 homes sold in Oct 2022, with a median price of $930,000.The median price in Warren had an increase of 36.1%from Oct 2021, while the number of homes sold was up 4.2% compared to the same period last year.
The median number of days on the market for Oct 2022 was 52 days which is down 36.8% to the same month in 2021,
You will find that Cliffside Park has quite a few bars, coffee shops, and restaurants as well as plenty of parks that attract your professionals as well as retirees to the area. Residents of Cliffside Park tend to be liberal.
Cliffside Park is currently a not very competitive market. In Oct 2022, 27 homes were sold with a median price of $679,000. The median price in Cliffside Park saw an increase of 35.9% over Oct 2021, while the number of sales was down -10.0% compared to the same month in 2021.
The median number of days on the market for Oct 2022 were 95 which is an increase of 35.9% compared to the same month last year.
Higher Mortgage Rates Could Slow Price Growth in New Jersey
How will interest rates affect the New Jersey housing market? We are already experiencing the impact of rising interest rates across the nation. Price growth in New Jersey has been flattening or on a slight decline for several months in 2022. However, New Jersey is a popular destination that may fare better than many other areas of the country.
As of mid-October 2022, the 30-year fixed rate mortgage is above 7% on average. That represents a 133% increase in mortgage rates in less than nine months. The Feds are on a “no holds barred” approach to curve inflation, and interest rate hikes have become the norm over the last several Fed meetings. Unfortunately, it seems that rate hikes are not done. We anticipate at least another rate increase before the year ends.
Key Market Stats for the New Jersey Housing Market:
As of the latest compiled housing report for October 2022.
|Current Value||Last Year||Change YOY|
|Median Sales Price||$443,000||$410,500||Up 7.9%|
|Number of sales||8,490||11,794||Down -28.0%|
|Median Days On The Market||46||38||Up -6.2%|
|Number of homes available||33,255||40,311||Down -17.5%|
|Month's supply of inventory||3||2||Up 50.0%|
|% of homes sold above list||45.6%||51.1%||Down by -10.8%|
|% of homes with price drops||18.6%||14.5%||Up 28.3%|
|New Listings||8471||11520||Down -26.5%|
New Jersey Historic price changes & affordability
The New Jersey housing market has seen moderate appreciation for years. The last 3 years have been favorable to homeowners as they saw their homes appreciate by 37.2% in 36 months.
The steep rise in home prices and mortgage rates has shrunk affordability to record lows in the state. A 37.2% spike in home prices and a sharp increase in mortgage rates in the last 12 months does not spell good news for the New Jersey Real Estate market.
We know that the average person’s wages do not increase by 37.2% in three years, so we can see why affordability is a problem. The gap between rising home prices and wages keeps getting wider.
- The housing market is clearly shifting, and New Jersey housing market predictions for the short term seem to be going down along with many areas of the US. Due to New Jersey’s moderate growth, we don’t anticipate New Jersey’s home prices to have significant swings.
- The next 18 to 24 months will be an adjustment, especially for home sellers and Real Estate professionals. Adjusting to a normalized market that is not heavily skewed in favor of sellers will take time.
- Real Estate markets are highly local and even within the same state, there will be areas that are projected to be hit hard by the market shift and others will fare better.
- Timing the market for buying or selling is a big gamble. If it makes sense for you to buy, go ahead and buy a home. For sellers, if you have to sell in the next 12-24 months, you may want to consider doing it sooner than later, especially if you are in an area that may be considered overvalued and has a high potential for house prices to drop.