One of the most significant developments in the New Jersey housing market in the past year was the decrease in interest rates. From November to December 2023, interest rates dropped by almost one and a half points, significantly impacting the overall market. We saw one of the most rapid interest rate increases in almost four decades, which defined the year. Looking back, many thought there would be a market crash and prices would decline. However, these predictions have yet to come true, and we have seen a steady and stable housing market.
Focusing specifically on the Atlantic and Cape May Counties in the South Jersey Shore, we can see that the number of new listings is down about 15%. This means that fewer properties came on the market last year. Additionally, the overall number of transactions has decreased by almost 20%, indicating that the market has slowed down slightly. However, the days on the market remained the same, steady and consistent compared to the previous year.
The rate decrease that we saw in late 2023 may continue in 2024. If that happens it could cause a significant increase in transactions. Particularly motivating those to move who did not want to because they’re “locked” into a low interest loan.