The New Jersey real estate market experienced a significant seasonal slowdown in December 2024, mirroring national trends. This slowdown was the most pronounced in nearly two years, with several key factors influencing the market dynamics. Market Activity and Home Sales The average time homes spent on the market in New Jersey increased to 70 days, marking the slowest December in five years and the slowest month since January 2023. This represents a nine-day increase compared to December 2023, indicating a notable deceleration in market activity. Inventory and Pricing
- Inventory levels in New Jersey saw a sharp decline of 8.6% from November, the largest decrease since January 2023.
- The median listing price in the state edged down by approximately $15,000 compared to the previous year, settling at $402,502.
Factors Influencing the Market
- Mortgage Rates: Higher mortgage rates, which rose to 6.85% for the week ending December 26, 2024, played a significant role in slowing down the market.
- Seasonal Trends: The typical end-of-year slowdown was more pronounced than usual, with buyers and sellers focusing on holiday festivities.
- Lock-in Effect: Many homeowners were reluctant to list their properties due to their current low mortgage rates.
Regional Comparisons While specific data for New Jersey was not provided, the Northeast region, which includes New Jersey, showed the following trends:
- Active listing counts increased by 6.9% compared to December 2023.
- New listings decreased by 5.6% in the Northeast.
- The Northeast had the largest gap in housing stock compared to pre-pandemic levels, at 48.7% below typical 2017-2019 levels.
Outlook for 2025
- Mortgage rates are projected to average 6.3% across 2025, potentially providing some relief to the market.
- Home sales are expected to increase slightly by 1.5% in the new year.
- The “lock-in” effect may gradually diminish as homeowners adjust to the new rate environment.
For potential buyers in New Jersey, the current market conditions present both challenges and opportunities. While inventory remains limited, the slower pace of sales may allow for more time to make decisions and potentially less competition. However, as spring approaches, the market may see increased activity and potentially higher prices for desirable properties.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single-family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
Connect with Ralph on LinkedIn: https://www.linkedin.com/in/ralphaponte/