Trenton, N.J. – (RealEstateRama) — New Jersey’s housing market is steady in the second quarter of 2018, with prices on the rise and properties spending fewer on the market, according to NJ Realtors® data.
The median sales price of a single-family home in June was $340,000, up 4.6 percent from last year. The townhouse/condo median sales price increased slightly to $260,000 in June and adult communities increased 10.5 percent to $210,000 when compared to this time last year. Single-family homes spent an average of just 57 days on the market in June, down 10.9 percent over last year. Average time on the market for townhouses and condominiums was down 15.4 percent at 55 days, with adult communities not far behind at an 11 percent decline to 65 days, when compared to this time last year.
A strong economy and a quarter point increase to the federal funds rate in June is spurring competition among buyers, with low inventory adding to an already aggressive market. The number of single-family homes on the market in June dropped 12 percent over last year to 37,573. The townhouse/condo and adult community market numbers followed suit, dropping 12.6 percent to 9,741 and 6.9 percent to 2,335, respectively, for June.
“Many buyers will lock in at the current rate in anticipation of higher rates in the near future,” said 2018 New Jersey Realtors President Christian Schlueter. “Though the 30-year mortgage rate did not increase, this is a common pattern when the federal government increases the federal funds rate, which has occurred twice this year and a total of seven times since 2015.”
With buyers quick to purchase homes from a smaller pool of available options, sellers are happy but buyers are feeling the market challenges. First-time homebuyers, who make up a large share of the market, are struggling to find inventory in their price range.
“The current market is an opportune time for sellers,” said Schlueter. “But we must remain cognizant of the younger individuals—often first-time buyers—may not be able to compete with other bidders. Everyone needs a piece of the pie.”
For the full reports, visit njrealtor.com/data.
Colleen King Oliver, Director of Public Relations & Marketing
609-341-7115, coliver (at) njrealtor (dot) com