The 4th quarter of 2022 is shaping up to be a transition period for the real estate market in Central Jersey. Real estate prices in New Jersey had been rising dramatically for the past two years. Home sale prices skyrocketed predominantly because of a lack of inventory and high demand from buyers who chose to leave nearby areas such as New York City, Long Island, and Staten Island. However, as we approach the end of the year, indications are the market is stabilizing after the frenetic last couple of years.
After a strong start to the year, the current housing market is showing signs of softening demand.
Homes in the Garden State have not been selling as briskly compared to last year. Based on July 2022 data released by New Jersey Realtors, median prices decreased slightly month over month in nearly half of the 21 counties located in NJ. This is possibly due to increasing interest rates that took hold earlier in the year.
Here are a few trends that are defining the New Jersey real estate market this Q3 2022:
– Median sales prices across the state held steady at $510,000.
– Days on Market increased by 4%.
It is interesting to note that some counties registered declines in median sales prices. These include the following New Jersey counties:
| NJ County | Percentage decrease | June 2022 Median Sales Price | July 2022 Median Sales Price |
| Essex | 9.15% | $715,500 | $650,000 |
| Salem | 8% | $231,500 | $212,950 |
| Somerset | 7.92% | $700,000 | $644,500 |
| Hudson | 7.85% | $605,000 | $557,500 |
| Hunterdon | 7.87% | $635,000 | $585,000 |
This does indicate that certain areas may present buyers with a stronger hand when making offers or negotiating house prices. However since the market in New Jersey has been relatively stable overall, buyers should still expect to pay close to listing prices.
New Jersey real estate forecast 2023
When it comes to the New Jersey real estate forecasts for the rest of 2023, there are predictions that houses could spend more days on market even if inventory continues to be limited in this state. Rutgers Economic Research Service points out that the possible additional supply of new housing units in the state will not satisfy demand enough to where it will significantly lower house prices.
Why New Jersey remains buoyant
Buyers are becoming more cautious and are looking for homes that represent ever better value. New Jersey’s real estate market has remained relatively healthy, even in2022, when interest rates have been at their highest for many years due to a number of factors. The state has a strong economy, great schools, and a variety of housing options. Additionally, New Jersey is conveniently located near New York City and Philadelphia, making it a great option for those who want to live near major metropolitan areas.
If you’re thinking of buying or selling a home in Central Jersey in 2023 and beyond, work with an experienced real estate agent who can help you navigate the current housing market.
Take advantage of decades of professional real estate expertise by working with Pagnotta Homes. Schedule a consultation today! Contact our team by calling 908.436.7947 or by sending an email to here.