Fall 2025 New Jersey Housing Market Update

By William “Bill” Boswell

Bill is widely known as one of New Jersey’s most sought after real estate agents and is a sales associate of Keller Williams Prosperity Realty.

If you’ve seen the news about mortgage rates dropping, you may be wondering what that means for you as a buyer or seller in New Jersey. Lower rates sound like great news, but in our local market, there are a few things you need to know. Today, I’ll break down what falling rates really mean and how they could affect your next move:

Low supply and high demand create pressure. Unlike some parts of the country where lower rates are helping to stabilize slow markets, New Jersey has a long-standing shortage of homes for sale. When more buyers can afford to compete for fewer homes, bidding wars become more common, and prices begin to climb.

Buyers need to prepare for competition. While lower rates may make monthly payments more manageable, you’re not the only one benefiting. Other buyers are in the same position, which means stronger offers and higher prices are likely. Knowing your budget, getting pre-approved, and working with an agent who can guide you through bidding situations are more important than ever.

Sellers could benefit from increased demand. With more buyers able to stretch their budgets, homes on the market may attract more showings, multiple offers, and higher final sales prices. Timing matters, though. Listing while momentum is building gives sellers a better chance to take advantage of strong competition.

Prices are likely to rise. As the Federal Reserve continues to ease rates, mortgage rates could keep dropping. That means more buyers will re-enter the market, fueling even more demand. My outlook for New Jersey is clear: home prices are likely headed up in the months ahead.

Lower mortgage rates are changing the market, but not in the same way everywhere. In New Jersey, buyers should expect competition, and sellers should prepare to act while demand is building. If you’re planning a move, feel free to call or text me at 973-224-4605 or email me at bill@northjerseyluxury.com. I’ll help you create a strategy that works best for you.