Saddle Brook, NJ – (June 24, 2022) New Jersey Multiple Listing Services (NJMLS) monthly indicator report for May indicates that after two years of record-setting activity, there are signs the housing market might be cooling. High home prices and a surge in mortgage interest rates are slowing buyer activity, with home sales declining for the third consecutive month under the weight of soaring homeownership costs. The National Association of REALTORS® (NAR) reports existing home sales were down 2.4% from the previous month, while pending sales fell 3.9% as of last measure, extending the trend of recent months. Economists predict sales will continue to soften soon, which may put downward pressure on home prices.
2022 Greater Bergen REALTORS® president, Robert ‘Bob' Funabashi commented, “ I'm hearing that seller aren't getting offers as quickly and some aren't getting any showings. In one case it's about price but in another case, this is the time of the year when people tend to put their homes on the market so that if they're moving, they can get their children into schools in time for the fall start. So consequently, towns that were at 25% of normal inventory levels are now pushing up to 40% of normal which leads to a natural slowdown in sales, more homes and more choices. Overall I see the market still being tight for the next 12-18 months before we return to the market that we had prior to 2020.”
The slowdown in sales has provided a much-needed lift to housing supply, with inventory up 10.8% from the previous month according to NAR, although supply remains down 10.4% compared to this time last year, with only 2.2 months’ supply of homes at the current sales pace.
As the nation continues to explore ways to solve the ongoing housing shortage, estimated at 5.5 million homes, the Biden administration recently unveiled the Housing Supply Action Plan, which aims to expand housing access through a number of administrative and legislative actions and help relieve the nation’s housing crisis over the next 5 years.
Data as of June 17, 2022. All data from New Jersey MLS and Hudson County MLS. The margin of error for reported statewide numbers is +/- 4% at a 95% confidence level. Provided by New Jersey REALTORS®.
Click Here for the full showingTime report for the month of May 2022.