Rather than damping or depressing the New Jersey housing market, as it has so many other business sectors, the pandemic has fueled a buying frenzy, putting the squeeze on inventory and driving up prices. Median sales price for all properties in February, as reported by New Jersey Realtors, shot up to $360,000, a 21.6% increase over the $296,000 median sales prices from February 2020, a month shy of the COVID-19 shutdown.
Closed sales for all properties jumped 13.2% in February, despite a nearly 50% drop in inventory of homes for sale.
Two key factors driving the market are unrelenting buyer demand and shrinking inventory: In effect, more dollars are chasing fewer houses. February inventory was down to just 22,072 homes, a 47.8% drop over February 2020, when 42,257 homes were on hand. There’s only a two-month supply of houses in the pipeline, which New Jersey Realtors characterizes as “a record low for the past decade, at least.”