Northern New Jersey Real Estate Market Update – Fall 2025

The Northern New Jersey real estate market continues to evolve, leaving buyers and sellers asking: Is it still a seller’s market, or are we starting to shift? With interest rate changes, affordability challenges, and more homes hitting the market, the data tells an important story for anyone looking to buy or sell in our area.

Are Homes in Northern New Jersey Still Selling Quickly?

One of the best ways to measure market momentum is by tracking days on market. Homes in Northern New Jersey are now averaging 30–34 days before going under contract. That’s slightly longer than last year, signaling a softening pace. While this isn’t a drastic change, it does show buyers have a bit more breathing room than in the red-hot market of a few years ago.

Northern NJ Housing Inventory and Sales Trends

Looking at year-to-date data through August 2025:

• Closed sales: Flat compared to 2024

• Pending sales: Slightly lower

• New listings: Slightly higher

This creates a tug-of-war between buyers and sellers. Homes are still selling at strong prices—often 104% of list price—but sellers are facing more pushback. Price reductions are becoming more common, and more listings are quietly coming off the market when sellers don’t meet their price goals.

Affordability Challenges in Northern New Jersey Real Estate

Buyers are feeling the squeeze. Home values have continued to climb, while wages have not kept pace. At the same time, mortgage rates remain elevated. Although the Federal Reserve recently cut the Fed Funds rate, mortgage rates are still hovering higher than many would like.

This gap—between sellers with low mortgage rates (often around 3%) and buyers facing new loans in the 6–7% range—has kept many would-be movers on the sidelines.

What Buyers in Northern NJ Need to Know

Waiting for rates to drop may not be the smartest move. Historically, October and November are the best months for buyers in terms of negotiating and finding the right home. With rates already trending slightly downward, waiting could mean facing more competition when demand picks back up.

Buyers should:

• Work with a trusted lender to float their rate

• Explore refinance opportunities in the future

• Stay focused on long-term goals instead of short-term rate fluctuations

Tips for Home Sellers in Northern New Jersey

Yes, it’s still technically a seller’s market—but overpricing your home is a mistake. Today’s buyers are savvy and cautious, and homes that aren’t priced right are sitting longer or requiring reductions.

Sellers can maximize value by:

• Preparing and staging their homes properly

• Pricing competitively for the current market

• Partnering with a local expert who knows how to negotiate in a shifting environment