The 2021 housing market was one for the history books. After three consecutive months of increases recently, existing home sales are on pace to hit their highest level in 15 years, with an estimated 6 million homes sold in 2021 according to the National Association of REALTORS®. Sales prices reached new heights, inventory hit rock bottom, and homes sold in record time, often for well above asking price.
Mortgage rates, which began the year at historic lows, remain attractive, and homeowners who choose to sell in the coming months can expect to see plenty of buyer activity due to pent-up demand during the pandemic.
• Single Family Closed Sales were down 18.9% to 7,628.
• Townhouse-Condo Closed Sales were down 12.9% to 2,378.
• Adult Communities Closed Sales were down 12.8% to 730.
• Single Family Median Sales Price increased 8.9% to $441,000.
• Townhouse-Condo Median Sales Price increased 9.5% to $317,500.
• Adult Communities Median Sales Price increased 16.0% to $290,000.
Looking ahead, experts anticipate many of the housing market trends of 2021 will continue in 2022, albeit at a more moderate level. Strong buyer demand and inventory shortages are likely to persist over the next year. Home sales are projected to remain strong but will be tempered by the limited supply of homes, higher sales prices, and rising interest rates, with the Federal Reserve planning multiple rate hikes in the new year. Price growth is expected to slow somewhat as a result, but affordability will likely remain a top constraint for some homebuyers.
Perhaps, the most significant metric for the month of December was the number of homes for sale throughout the state: just 12,602 – representing just 1.7 months supply. This is a record low for the state, since such numbers have been kept. In December 2017, there were 2,656 single-family homes for sale in Monmouth County. In December 2021, there were just 983 single-family homes for sale in Monmouth County.