New Jersey’s Mid-Year 2025 Housing Market Defies National Trends—Here’s Why

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.

Why isn’t New Jersey’s real estate market crashing like everywhere else? You’ve probably heard that the real estate market is a mess, with high interest rates, too much inventory, fewer buyers, and dropping prices. It’s true in a lot of places, but New Jersey isn’t following that pattern.

To understand why, you have to look beyond prices and focus on what we call the absorption rate. That’s the number of months it would take to sell all the current listings if no new homes came on the market. Around five to six months of inventory is the tipping point. Below that, it’s a seller’s market. Above that, buyers start gaining control.

In many parts of the country, inventory has climbed past that threshold, giving buyers more choices and causing prices to drop. In New Jersey, that’s not the case. So what’s exactly happening in our market?

New Jersey’s market is finding balance. For the longest time, most towns in New Jersey were sitting at about one month of inventory, and some even had less. This kind of low supply isn’t typical, and in the past, only a handful of areas ever saw numbers like that.

Now, we’re starting to see a slight increase in inventory, which is actually a good thing because it’s giving buyers more choices without overwhelming the market. Prices aren’t dropping as the increase also hasn’t been big enough to cause that kind of shift. As a result, New Jersey’s market is a bit more balanced, where buyers have room to shop and sellers still have solid value on their homes.

Buyers and sellers win. With New Jersey’s market finding balance, both buyers and sellers are in a strong position. Buyers have more options and have room to compare, negotiate, and make confident decisions. At the same time, sellers aren’t being forced to lower prices or offer big incentives just to get attention.

In some towns, inventory is holding at around three to four months, with some areas still closer to two. That’s low enough to keep prices stable but high enough to reduce the pressure on buyers. While bidding wars can still happen, it’s usually just a few two or three competing offers and not the intense competition we saw in recent years.

This kind of setup creates opportunities on both sides. Buyers don’t feel hopeless, and sellers can still close at strong and fair values.

At the moment, I really believe New Jersey has one of the best real estate markets in the country. It’s steady, it’s active, and it hasn’t been hit with the same volatility that’s shaken other places.

If you’re curious about how to navigate this kind of market, I’d be happy to help you dig deeper. Feel free to call me at 973-224-4605 or send me an email at bill@northjerseyluxury.com. Let’s make the most of this window while it’s still open.