New Jersey Housing Market: November 2024 Analysis
The New Jersey housing market in November 2024 presents a complex scenario with varying trends in pricing metrics. The Median Sales Price has increased slightly by 0.9% year-over-year, reaching $538,600. Conversely, the Median List Price has decreased by 4.0% YoY, now standing at $509,900. This divergence suggests a potential gap between seller expectations and buyer willingness, possibly influenced by broader economic factors.
Price Per Square Foot Dynamics
There is a notable increase in the median Price Per Square Foot, which has risen by 11.6% YoY to $324. This indicates a strong demand for space, despite the overall decrease in list prices. The Median List Price per square foot also saw a significant rise of 9.5% YoY, reaching $321, suggesting that sellers are adjusting their pricing strategies to reflect the value of space more accurately.
Sales Activity and Inventory Levels
Sales activity shows a modest increase, with 6,905 Homes Sold, marking a 0.7% rise YoY. Pending Sales have seen a more robust growth of 4.0% YoY, totaling 7,481. This uptick in Pending Sales could indicate a stronger market in the coming months. However, New Listings have decreased by 4.3% YoY to 6,592, which may contribute to tighter inventory conditions.
Inventory levels have increased by 4.2% YoY, reaching 17,451 homes. This rise in inventory, coupled with a 10.0% increase in Months of Supply to 2.5 months, suggests a shift towards a more balanced market, potentially easing the competitive pressure seen in previous months.
Market Speed and Sale Conditions
The Median Days on Market have increased slightly by 1.0% YoY to 37 days, indicating a marginal slowdown in how quickly homes are selling. The average sale to list ratio has decreased by 0.4% YoY to 101.5%, while the percentage of Homes Sold above list price has dropped by 2.2% YoY to 51.3%. These metrics suggest a slight cooling in the competitive bidding environment.
Price Drops have decreased marginally by 0.3% YoY to 16.1%, indicating that sellers are becoming more realistic with their pricing strategies. Additionally, the percentage of homes going off the market within two weeks has increased by 1.6% YoY to 29.9%, reflecting a segment of the market that remains highly competitive.
Conclusion
The New Jersey housing market in November 2024 exhibits a mix of stabilizing and dynamic trends. While sales prices show modest growth, list prices have declined, indicating potential adjustments in seller expectations. The increase in Price Per Square Foot suggests a continued demand for space, while rising inventory and Months of Supply point towards a more balanced market. Overall, the market appears to be transitioning, with signs of both cooling and sustained demand in different segments.
