Real Estate Market Year in Review: Union County, NJ

The 2022 Real Estate Market was definitely one for the record books.   Coming off a pandemic-fueled boom in 2021, many early predictions were that prices would fall and the market would stabilize a bit.  Instead,  continued low inventory coupled with dramatically rising mortgage rates resulted in a roller coaster of a year.  Below are some of the highlights of the Real Estate Market in Union County, NJ in 2022.

Home Prices Rose to All-Time Highs

The average sales price in Union County, NJ rose to $616,533 in 2022 which was an increase of 7.9% over 2021.  This peaked at $710,161 in June, then dropped off towards the end of the year. Even with the slight drop, prices remained above pre-pandemic numbers.  Homes also continued to sell over list price, going for an average of 103.08% of list price.  This peaked at 106.29% in May, then fell off during the back half of the year.  In spite of the slight drop off, the overall local real estate market remains incredibly strong. Well-priced properties entering the market are selling within days and some are still receiving multiple bids.  On the flip side, many of the limited number of properties for sale have accumulated a substantial number of days on the market.  They were not properly priced to begin with so when they do eventually sell, it is for below list price. 

Average & Median Homes Sales Price in Union County NJ

Housing Inventory hit Records Lows

The primary reason homes prices rose in 2022 is that inventory remained very lean.  It is simply the law of supply and demand.  There were only 6,427 homes available for sale in 2022 which was 32% less than 2021.   And inventory in 2021 was already significantly lower than 2020.   New listings to the market were also down by 27% for the year so home buyers simply did not have much to choose from.  Months of supply of inventory were at an average of 1.44 for the year which is an indication of a Seller’s Market.  The market it generally considered a Buyer’s Market when months of supply are over 6 months.  That has not happened since before 2020.

Housing Inventory and Month’s Supply of Inventory in Union County NJ

Mortgage Rates rose dramatically

After years of mortgage rates falling and ultimately hitting record lows in 2021, rates climbed dramatically in 2022.   Driven by high inflation, rates jumped from 3.22% at the beginning of the year to a record high of 7.08% in November.  Fortunately, they dropped a bit at the end of the year to an average of 6.33% in December.   In spite of this increase, rates are still well below the all-time high of 18.6% in 1981.  They are also below the average of 7.76 since Freddie Mac starting track in the 1970s.   Although rising mortgage rates often deter buyers, many financial experts agree that home ownership can be a very lucrative long-term investment even with higher rates.   There are also many different financing options available to buyers to keep payments affordable.

Real Estate Market Predictions for 2023

The 2023 Real Estate Market predictions vary wildly.   Some experts predict a substantial downturn while others see a flattening or even continued growth.   The reality is that no one can time the market.  History proves the best time to buy a home or sell a home is when the need or desire is there.  Upgrading in a market that has seen a substantial rise means you’re going to get more for the property you’re selling as well.   Buyers and sellers should pay less attention to the national headlines and partner with a local Real Estate professional that is familiar with the intricacies of their specific market.   I will be keeping a very close eye on the market and continue to report out on trends I am seeing.   Subscribe to my blog receive updates as soon as they are posted.  

Happy New Year!