Affordability Quietly Improves
Prices keep climbing, inventory is expanding, and buyers are taking their time — here’s what the latest data means for the New Jersey real estate market.
The spring housing market showed measured progress in April. Existing-home sales across the country edged up 0.2% from March, reaching a seasonally adjusted annual rate of 4.02 million, according to the latest data from the National Association of REALTORS®. While that gain is modest, it tells a meaningful story: buyers are still in the market, and slowly improving affordability conditions are helping them get there.
On a year-over-year basis, sales were flat — no change compared to April 2025. But the picture varied considerably by region. Month-over-month, sales rose in the Midwest and the South, held steady in the Northeast, and pulled back in the West. Looking year-over-year, the South was the one standout with gains, the West was unchanged, and both the Northeast and Midwest saw modest declines.
What’s Driving the Market
NAR Chief Economist Dr. Lawrence Yun pointed to a somewhat contradictory economic backdrop — a record-high stock market sitting alongside historically low consumer confidence. In that environment, housing affordability has quietly become a tailwind.
The Housing Affordability Index bears that out, rising to 110.6 in April from 101.4 a year ago. Every region improved year-over-year: the Northeast was up 4.7%, the Midwest gained 5.9%, the South climbed 9.6%, and the West led all regions with a 12.5% improvement in affordability.
Inventory Is Growing — But Still Tight
Total housing inventory rose to 1.47 million units in April, up 5.8% from March and 1.4% higher than a year ago. That translates to a 4.4-month supply, compared to 4.2 months last month and 4.3 months in April 2025. More homes are coming to market, which is welcome news — but inventory remains historically constrained.
That combination — lingering competition alongside more deliberate buyers — defines today’s market well. Well-priced homes in desirable locations continue to move quickly. Overpriced listings, on the other hand, are sitting longer as buyers exercise more patience.
Prices Continue Their Upward Climb
The median existing-home price reached $417,700 in April, up 0.9% from $414,000 a year ago. That marks the 34th consecutive month of year-over-year price increases — a remarkable streak that underscores how persistently supply constraints have supported values, even as sales volume has plateaued. For single-family homes specifically, the median price came in at $422,300, up 1.0% from last year, with sales at a seasonally adjusted annual rate of 3.64 million — unchanged month-over-month but down slightly from April 2025.
One interesting footnote from Dr. Yun: second-home purchases are on the rise, reflecting stronger financial footing among higher-income households and the continuing influence of remote and hybrid work on where and how people choose to live.
What This Means for Buyers and Sellers
For buyers, April’s data offers some encouragement. Affordability is better than it was a year ago, more inventory is available, and the days of frenzied, blink-and-you’ll-miss-it offers have eased. There’s more room to be thoughtful. That said, well-prepared buyers — those who are pre-approved and working with experienced professionals — still hold a meaningful edge.
For sellers, the fundamentals remain sound. Prices are higher than a year ago, demand hasn’t evaporated, and inventory — while growing — is still below what would be considered a fully balanced market. Realistic pricing is more important than ever, as buyers today are comparing options carefully before committing.