New Jersey’s real estate market exhibits a blend of resilience and emerging challenges. While home values continue to rise, increasing inventory and affordability concerns are influencing buyer behavior. Here’s a comprehensive overview:
🏠 Statewide Market Overview
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Average Home Value: Approximately $563,670, marking a 5.7% year-over-year increase.
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Median List Price: Approximately $534,633 as of April 2025.
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Inventory Levels: There were 26,024 homes for sale in April 2025, a 3.1% increase year-over-year.
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New Listings: Totaled 9,976 in April 2025, a slight 0.2% uptick from the previous year.
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Median Days to Pending: Homes typically went under contract in 16 days as of April 2025.
📊 Market Dynamics
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Homes Sold Above List Price: Approximately 53.6% in April 2025, a 2.3 percentage point decrease year-over-year.
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Price Drops: About 19.7% of homes experienced price reductions, up from 13.0% in April 2024.
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Sale-to-List Price Ratio: Stood at 102.2%, indicating homes are selling slightly above their listing prices.
🌆 Regional Highlights
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Newark: Home prices surged by 26.7% year-over-year, with a median sale price of $652,500 in April 2025.
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Jersey City (ZIP 07307): Experienced a 4.4% decline in home prices, with a median sale price of $765,000.
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Princeton Area (ZIP 08536): Saw a significant 38.5% decrease in home prices, with a median sale price of $400,000.
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Cape May: The median listing price reached $1.3 million, up 39.1% year-over-year.
💰 Affordability and Buyer Behavior
Despite increasing inventory, high mortgage rates—hovering around 6.7%—and elevated home prices are deterring some buyers. This has led to a rise in price reductions, with nearly one in five listings seeing cuts in April. Affordability remains a pressing issue, particularly for first-time and middle-income buyers.
🔮 Market Outlook
Looking ahead, New Jersey’s housing market is expected to experience modest price growth with increasing inventory levels. While demand remains strong in certain areas, affordability challenges and high mortgage rates may temper buyer enthusiasm. Potential buyers are advised to stay informed about local market trends and be prepared for a competitive environment.