New Jersey Housing Market Analysis - August 2024
The New Jersey housing market in August 2024 presents a nuanced picture with several key indicators showing both positive and negative trends. This analysis delves into the various metrics to provide a comprehensive overview of the current state of the market.
Median Sales and List Prices
The Median Sales Price for homes in New Jersey stands at $555,300, reflecting a slight decrease of 0.3% year-over-year (YoY). Similarly, the Median List Price has also seen a decline, now at $532,000, which is down by 1.2% YoY. These figures suggest a modest cooling in the market compared to the previous year.
Price Per Square Foot
Despite the overall decline in median prices, the median Price Per Square Foot has increased significantly. The current median Price Per Square Foot is $322, up by 9.2% YoY. The Median List Price per square foot has also risen to $321, marking a 10.6% increase YoY. This indicates that while overall prices have slightly decreased, the value of space within homes has appreciated considerably.
Sales and Inventory
The number of Homes Sold in August 2024 is 8,809, which represents a 2.0% decrease YoY. Pending Sales have also declined by 3.3% YoY, now totaling 8,934. New Listings have dropped by 3.8% YoY, with 8,905 new homes entering the market. However, the inventory has increased by 5.2% YoY, reaching 18,304 homes. The Months of Supply, a critical indicator of market balance, has risen by 20.0% YoY to 2.10 months, suggesting a shift towards a more balanced market.
Market Dynamics
The Median Days on Market for homes in New Jersey is currently 33 days, showing a slight increase of 2.0% YoY. The average sale to list ratio remains robust at 103.0%, with a marginal increase of 0.1% YoY. However, the percentage of Homes Sold above list price has decreased slightly to 58.7%, down by 0.5% YoY. Price Drops have become more common, with 18.7% of listings experiencing a reduction, up by 3.3% YoY. Additionally, 34.7% of homes are going off the market within two weeks, showing a minimal increase of 0.1% YoY.
Conclusion
In summary, the New Jersey housing market in August 2024 exhibits a blend of stability and change. While median sales and list prices have seen slight declines, the Price Per Square Foot has appreciated significantly. Sales activity has slowed, but inventory levels have increased, contributing to a more balanced market. Market dynamics such as the average sale to list ratio and Median Days on Market remain relatively stable, indicating sustained buyer interest. Overall, the market is showing signs of moderation, with a shift towards equilibrium between supply and demand.
