The “frenzied” real estate market turned into the “cooled” market in 2022 as interest rates rose and prices continued to climb, knocking some buyers out of the game.

Yet, the homes that were listed for sale actually sold at a quicker pace in 2022 than they did during the pandemic market. In fact, they sold faster than they have in at least a decade.

The statewide average for days on market – the time from when a house is listed for sale until it goes under contract – for 2022 was 34. In 2021 it was 37 and in 2020 it was 56, according to data from New Jersey Realtors.

Days on market peaked over the past decade at 109 in 2012 and the 10-year average was 71 days.

But they sold in half that time last year.

“They’re still selling quickly because of the lack of inventory,” said Gloria Monks, managing broker at Compass in Princeton and president-elect of New Jersey Realtors. “It’s the number one driver for us. It drives everything, including pricing.”

In January 2022, there were 12,727 homes listed for sale, according to New Jersey Realtors data. That number peaked in July when 18,779 homes were for sale. And the year ended with 13,595 homes for sale in the Garden State.

Housing inventory has been trending downward for the past decade. In July 2011, there were 71,194 unsold homes on the market in New Jersey, according to data from the Otteau Group. By July 2016, there were 51,010 and in July 2021, there were 20,729 unsold homes on the market.

Realtors had to do a lot more advertising, open houses and deal with the the frustrations felt by sellers five or 10 years ago.

“The market the last three years, you could just stick a number out there and if it was not egregiously wrong, the market would take it where it was supposed to go and beyond,” said James Hughes of Compass in Montclair.

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Source: nj.com