US Housing Market
The New Jersey housing market experienced a significant surge in 2024, with single-family home prices climbing by over 11% , according to data from New Jersey Realtors . This increase far outpaced the national average of 4.6% for the same year, highlighting the intense demand and limited inventory that have characterized the real estate landscape in recent months.
Statewide, the median sales price for homes reached $560,000 , reflecting the growing pressure on buyers in one of the most competitive housing markets in the country. However, in Central Jersey , several counties reported even higher figures, underscoring regional variations in pricing trends:
- Middlesex County : $575,000, up 11%
- Somerset County : $750,000, up 13.6%
- Hunterdon County : $650,000, up 13.7%
- Union County : $625,000, up 11.6%
The townhouse and condo market also followed this upward trend, with the statewide median sales price increasing by 11.2% to $417,000 . In Central Jersey, three out of four counties surpassed this amount:
- Middlesex County : $421,000, up 13.8%
- Somerset County : $450,000, up 8.2%
- Hunterdon County : $362,000, up 11.9%
- Union County : $417,000, up 11.5%
Why Are Prices Soaring?
Several factors are driving this rapid increase in home prices across New Jersey. One of the primary drivers is the ongoing shortage of housing inventory . According to New Jersey Realtors , the state has been grappling with a historically low supply of available homes, which has intensified competition among buyers. In fact, the number of active listings at any given time has dropped significantly over the past few years, creating a seller’s market where bidding wars are common.
Kathy Morin, President of New Jersey Realtors, explained: “The past year has seen continued upward pressure on prices due to high demand and limited inventory. Nevertheless, the market remains resilient, offering opportunities for both buyers and sellers, and New Jersey continues to be an attractive location.”
While the number of closed sales dipped slightly—by less than 1% compared to 2023, with 56,541 single-family home sales—the rise in new listings offers a glimmer of hope for potential buyers. New listings increased by nearly 5% , totaling 75,101 for the year. All four Central Jersey counties witnessed increases in new single-family listings:
- Middlesex County : 5,402, up 5.7%
- Somerset County : 2,629, up 7.8%
- Hunterdon County : 1,514, up 11.75%
- Union County : 3,970, up 0.02%
Despite the uptick in listings, the imbalance between supply and demand continues to push prices higher. In these counties, final sales prices consistently exceeded listing prices by 104% to 105% , indicating that buyers are willing to pay a premium to secure properties in this competitive environment.
Time on Market: A Key Indicator
Another important metric to consider is the time homes spend on the market . Statewide, the average time single-family homes spent on the market decreased by 5.4% to just 35 days . In Central Jersey, the times were as follows:
- Middlesex County : 35 days, down 12.5%
- Somerset County : 31 days, down 6.1%
- Hunterdon County : 39 days, down 7.1%
- Union County : 30 days, down 6.3%
This rapid turnover reflects the urgency among buyers to act quickly in a market where desirable properties are snapped up almost immediately. The shorter time on market also suggests that sellers are in a strong position to negotiate favorable terms, further driving up prices.
Broader Economic Context
The rising home prices in New Jersey are not occurring in isolation. Nationally, the housing market has been influenced by a combination of factors, including low mortgage rates earlier in the year, which encouraged many buyers to enter the market. However, as interest rates began to rise toward the end of 2023 and into 2024, some potential buyers were priced out, leading to a slight cooling in demand. Despite this, the overall trend remains one of upward pressure on prices due to the persistent lack of inventory.
Additionally, remote work trends have played a role in reshaping housing demand. With more people working from home, there has been a shift away from urban centers to suburban and rural areas, where larger homes and more space are available. This trend has been particularly pronounced in counties like Somerset and Hunterdon , which offer more spacious properties and a quieter lifestyle compared to densely populated urban areas.
Looking Ahead: What’s Next for the Housing Market?
While the current market conditions favor sellers, there are signs that the situation may begin to stabilize in the coming months. The increase in new listings suggests that some homeowners are finally putting their properties on the market, potentially easing the inventory crunch. Additionally, if mortgage rates continue to rise, it could temper demand and slow the pace of price increases.
However, experts caution that any significant relief for buyers may still be months or even years away. The fundamental issue of undersupply —exacerbated by years of underbuilding—remains a long-term challenge for the housing market. Until developers can catch up with demand, prices are likely to remain elevated.
Conclusion
The New Jersey housing market in 2024 has been defined by skyrocketing prices, fierce competition, and a shortage of available homes. While the rise in new listings offers some hope for buyers, the imbalance between supply and demand continues to drive prices higher. As the market evolves, both buyers and sellers will need to navigate these challenging conditions carefully.
This article originally appeared on MyCentralJersey.com: NJ home prices rose more than 11% in 2024, according to NJ Realtors .
