Besides the fact that it's super expensive to make ends meet here in the Garden State, there are plenty of other reasons people give to explain why they've chosen not to purchase a home in New Jersey.

Everybody knows New Jersey is a pricey place to live. Still, that hasn't stopped people from setting roots down in the Garden State quite like it did over the last year or so.

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New Jersey home buying drastically dropped

New information has revealed that the percentage of people purchasing homes in New Jersey dropped over 20% in 2023. Overall, home buying in the Garden State is actually down 22% in total. Of course, multiple factors can be listed as reasons for why the decline was so steep.

Interest rates and inventory are both at new records

According to NJ.com, the folks at New Jersey Realtors have said that it's a combination of both not enough quality houses hitting the market and the highest interest rates potential homebuyers have seen in years that's preventing people from entering the market. Why would people give up their 2-4% interest rate for one over 7% right now? It makes no sense.

So, the result is people are staying put.

The townhouse and condo market segment saw the biggest decline in closed sales, dropping 24% in 2023 compared with 2022. The 19,175 closed sales in 2023 represented a 6,063 decline from 25,238 in closed sales in 2022

Apparently, it's so bad that even realtors are debating whether or not to keep their licenses active. Hopefully, a change for the better is in store for the New Jersey housing market in 2024. As always, only time will tell.

21 fastest shrinking towns in New Jersey

These 21 towns saw the biggest population decreases last decades. These figures are based on U.S. Census American Community Survey 5-year estimates for 2012 and 2021

Gallery Credit: New Jersey 101.5

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