Real Estate Market in Cranford NJ: January 2023

The Real Estate Market in Cranford NJ started to pick up in the month of January.   The Average Sale price was $574K which was +6% to December.  Homes continued to sell above list price, with the average sales price going for about 2% over.  This is a softer than the peak in the middle of last year but some homes are still selling for significantly over asking.  Two homes in town sold for 10% and 14% over list price, respectively, and both sold in less than ten days. 

Part of the reason we are still seeing high prices is that inventory remains very lean.  There were only 9 homes sold for the month which was -18% to last year -40% to December.  On a positive note, new listings picked up from December with 12 new homes listed which is +50% to Dec but still down to last year and very low historically.   New listings are also selling quickly.  Seven of the new listings for the month already went under contract in an average of twelve days.  The remaining five new listings have only been on the market for less than a week and will likely go quickly. 

For home owners that have been considering selling their homes, now is a fantastic time to list!   Buyers are hungry for options and homes are selling quickly.  Traffic was extremely high at Open Houses last week and there were definitely some bidding wars.  Although this may seem intimidating to Buyers, there are many things they can do to stay competitive.  I am very tuned in to the local market and keep a close pules on the latest trends so they I can help to guide and advise my clients. 

Let me know if you have any questions and I’ll continue to keep you updated on the Real Estate Market in Cranford.  

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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!

Real Estate Market Update

The Real Estate Market in Union County NJ for the month of November remained a Seller’s Market.   The Average Sale price was $638K which was +16% to last year and +4% to the prior 3 months.  This was a slight drop off over the past few months but remains an upward trajectory in price overall.  Homes continued to sell above list price, with the average sales price going for about 1% over.  This is a softer than the peak earlier this year but is in line with last year .  Some homes are still selling for significantly over asking.

Part of the reason we are still seeing these high prices is that inventory remains very lean.  There were only 303 homes sold for the month which was -32% to last year and in line with record lows over the last 2 years. There were also only 284 new listings for the month which was -29% to last year and the lowest number of new listings we’ve seen since last December

We have seen a slight down trend in Days on Market which is the number of days a home is on the market before it sells. This was 38 days this month which has been increasing over the past couple of months but is still much faster than 2020 numbers. 

Notable Home Sales

There were some notable sales this month!  The two homes with the highest sales prices were a house in Summit that sold for $4.2M which was $350K over asking in only 22 days and a home in Westfield that sold for $3.25M in only 7 days!  Another notable Westfield sale was a home on Eaglecroft that went for  $161K over asking at $1.36 in only 9 days.  There was also a house on Indian Spring Rd in Cranford that sold for $96K over asking at $915K in only 14 days. 

So overall, it’s still a strong seller’s market.  Homes aren’t selling quite as fast or for quite as much over list price, but prices are not dropping here the way you have probably been hearing they are in the media headline.  Let me know if you have any questions and I’ll continue to keep you updated. 

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The Real Estate Market in Cranford NJ softened a bit in the month of October.  The average sales price dropped from the prior month.  The average days on market was a little faster, though, which means that homes are selling a bit faster.  Inventory also remains very lean.  Homes that are priced right are still selling at or above listing price in a short period of time, there are just very few homes for buyers to choose from!

Average Sales Price

The average sales price for October was $557,312, which was 15% lower than the the previous 3 months.  This was also -8% to October 2021, but still an increase over most of 2021 and early 2022.  Only 16 homes sold for the month of October, which was 44% less than October 2021 and 25% less than the previous 3 months.

Average & Median Sales Price in Cranford in October 2022

Homes Sold

The homes that sold in Cranford in October ranged in price from $247,000 to $980,00.  This was in line with their list price, on average, although 5 of the homes sold for more than their List Price.  The most notable was 5 Thomas which sold for $750,000 which was +$51,000 over List Price.  On average, homes sold in 34 Days, although 6 of these properties sold in  2 weeks or less.  The homes that sold more quickly, sold at our above list price.  Generally, homes that sat on the market longer, sold for below list price.  This indicates these homes were mostly likely priced too high to begin with.

Homes Sold in Cranford in October 2022

Market Updates

The Real Estate Market in the Cranford area and Nationally continues to change.  For home buyers and sellers, it is important to work with a Real Estate Agent that has a strong pulse on your local market.  Sign up here to receive email updates from Brooke Filosa on the Real Estate Market in your area.

The local New Jersey Real Estatee Market isn’t as bad as the National Headlines might lead you to believe.  There are some interesting statistics on the Cranford NJ Real Estate Market when you dig in a little.  So far, in the month of October, there are 15 homes for sale that went under contract.  These homes were on the market for an average of 33 days before going under contract. While this is slower than last year, 8 of the homes went under contact in less than 2 weeks! Homes are still selling quickly if they are priced right and have features buyers are looking for.

It is important to work with a Real Estate Agent in your local market that can educate you on most recent market trends.  Whether you are looking to buy or sell a home, you need to understand the nuances of your specific area.   I pride myself on keeping a strong pulse on the local Real Estate Market so that I can advise my clients accordingly.