Saddle Brook, NJ – January 24, 2024- U.S. existing-home sales rose from a 13-year low, climbing 0.8% from the previous month and breaking a five-month streak in which sales declined, according to the National Association of REALTORS® (NAR). Despite the increase, sales were down 7.3% compared to the same period last year, as affordability challenges continue to hinder prospective buyers. Most of this period’s closed sales went under contract in October, when mortgage rates were at a two-decade high. With rates having dropped more than a full percentage point since then, existing-home sales may continue to pick up in the months ahead.

Low levels of inventory continue to impact U.S. home sales, offering few options for aspiring buyers to choose from. Going into December there were 1.13 million units for sale, down 1.7% from the previous month but up 0.9% from the same period last year, for a 3.5 months’ supply at the current sales pace. As a result, sales prices remain high nationwide, with NAR reporting the median existing home price rose 4% annually to $387,600 as of last measure, the fifth consecutive month of year-over-year price gains. Homebuyer demand is picking up, and without a significant increase in supply, experts believe home prices will likely remain elevated for some time to come.

"As we are getting ready for the 2024 Real Estate Market, we look back at 2023 and are not surprised by the most recent monthly indicators. Single Family new listings were down 24%, while sale prices continue to rise by 5%,” states Greater Bergen REALTORS® President-Elect, Nicola Esposito. He adds, “Higher mortgage rates affected home prices in 2023, but not significantly like we expected. Most analysts are forecasting interest rates in 2024 to be below 6%, and this may incentivize Sellers to list their homes, as lower interest rates will help Buyers increase their purchasing power." 

Highlights From December 2023 Report:

• Single Family Closed Sales decreased 16.3 percent to 365.
• Townhouse-Condo Closed Sales decreased 8.8 percent to 146.
• Adult Communities Closed Sales increased 25.0 percent to 5.
• Single Family Median Sales Price was up 8.5 percent to $680,000.
• Townhouse-Condo Median Sales Price remained flat at $400,000.
• Adult Communities Median Sales Price was down 70.0 percent to $270,000.

Click Here for the full ShowingTime report for the month of December 2023.

Data as of January 20, 2024. All data from New Jersey MLS and Hudson County MLS. Margin of error for reported statewide numbers is +/- 4% at a 95% confidence level. Provided by New Jersey REALTORS®. Report © 2024 ShowingTime.

About Greater Bergen Realtors®

Greater Bergen REALTORS® is a not-for-profit trade organization that serves more than 8,500 REALTOR® members throughout Bergen, Hudson, and Passaic Counties in New Jersey. We empower the success of those we serve by focusing on Connections, Advocacy, Resources, and Education. As the leading voice of real estate in Northern New Jersey, we advocate to protect private property and home-ownership rights.

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