The average price of a single family home in New Jersey has increased almost $100,000 in the past year, according to data from New Jersey Realtors.

The average home price for the first quarter of 2021 was $500,628 or 24% more than the $403,785 for the first quarter of 2020, the data shows.

“It has jumped dramatically,” said Robert White, President-elect of NJR and Managing broker at Coldwell Banker Realty in Spring Lake.

The price increase is being driven by low inventory and eager buyers.

“With the current inventory situation and the buying frenzy, you’re seeing … many homes selling over asking price in today’s market and that is forcing values to increase because appraisers are coming out and appraising at those higher numbers,” he said.

Year-to-date numbers show big gains for price and sales despite low inventory.

New listings were down 18% overall from January through March this year compared to last, but up about 8 percent in March 2021, compared to the same month last year. That’s partially reflective of the state shutting down in mid-March last year, said Spencer Freedman, an agent with Keller Williams Realty West Monmouth.

“But this time of year typically is always higher inventory,” he said. “People like to wait until their flowers are in bloom and the weather warms up.”

Despite the low inventory, closed sales were up 18%, from the first quarter of 2021 versus the same time period in 2020.

Percent of list price received was also up by 3%, from 97.6% of list price in 2020 to 100.2% of list price in 2021.

White says that number isn’t necessarily reflective of what’s going on in today’s market.

A house that’s listed for $500,000 will likely sell for $530,000 to $540,000, he said. “There’s just so much demand.”

And homes that are listed for sale are on the market for less time before selling than in the first quarter of 2020 — 47 days versus 73.

Tarah Logan, a sales associate for Berkshire Hathaway in Mullica Hill who works in Gloucester, Camden and Salem counties, said agents have to take buyers to look at a house the first day it hits the market or they may miss out.

“I can’t tell you how many times I refresh the MLS throughout the day,” Logan said.

Because of COVID-19 there are limited appointments to see homes in person. “Some agents give a couple of days for showings so they can get the best offer,” she said. “Some homeowners don’t want the showings, so they take the first couple offers and then shut it down.”

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Allison Pries may be reached at apries@njadvancemedia.com.

Originally Appeared On: https://www.nj.com/news/2021/05/the-average-price-of-an-nj-home-is-100k-more-than-what-it-was-last-year.html