The New Jersey housing market is showing resilience with some interesting shifts. Home values have appreciated significantly, with the average home now valued at approximately $569,000, representing a 4.6% increase over the past year. Properties are moving relatively quickly, going pending in around 16 days, which indicates sustained demand despite higher price points.
However, the market is also showing signs of rebalancing. Inventory has increased by 12.7% compared to the previous year, giving buyers more options than they’ve had in recent memory. Meanwhile, closed sales have dipped slightly by 1.5%, and fewer homes are selling above list price compared to last year. In August 2025, just over half of homes sold above asking, down from higher percentages in the previous year, and properties with price reductions increased slightly to 19.1%.
Regional variations matter significantly. The Jersey Shore market has seen robust growth with median prices up 6.7% year-over-year, while urban centers like Newark and Jersey City continue attracting young homeowners and investors with ongoing redevelopment projects.
The Interest Rate Landscape: What It Means for Your Clients
Perhaps the most important factor shaping strategies through 2026 is the trajectory of mortgage rates moving forward. Even though 2025 mortgage rates between 6.5-6.4% seem to have stalled, some are thinking that 5.9% rates might be possible by the end of 2026. With this type of market, many potential buyers are sitting on the sidelines waiting for rates to improve.
“The Price Is Right” Strategy
The automatic above-ask offers are not so automatic. As inventories improve and buyer budgets adjust, sellers need to adapt to the new competitive pricing out of the gate. It will require sellers to:
- Conduct market analyses that look beyond the comparables and dive deeper into the absorption rates within specific neighborhoods including, days on market, and the percentages of list-to-sale prices for properties.
- Create a pricing runway to account for market timing, if the seller is in a rush. If they need to sell now, the right price is a non-negotiable – since they want to capture buyer’s attention before year-end.
- Build-in some negotiation margin. Today’s market doesn’t account much for padding the price and then negotiating down. This approach will backfire, especially in a market that is contracting.
Make the Listing Stand Out
With more inventory available, homes need rise to the top of the pile. Pre-sale prep includes:
- Pre-listing inspections and repairs. As properties become more expensive, buyers are more cautious in their due diligence. By addressing potential problematic issues before the listing, sellers can prevent deal-killing surprises during inspection periods.
- Strategic improvements with ROI impact. Concentrate seller’s focus on updates that maximize the ROI in their price range—fresh paint, modern lighting fixtures, and improved curb appeal can be game-changers.
- Hire a staging professional. High-quality photography, virtual tours, and detailed property descriptions aren’t optional anymore with the knowledge that the first showing is online, and if the digital presentation is lacking, there won’t be an in-person showing.