New Jersey
Housing Market
New Jersey’s housing market constantly evolves with shifting home prices and demand. Houzeo’s housing market report tracks the changes in supply and demand across New Jersey. Our report offers real-time insights to help you make informed decisions.
Overview
Supply
Demand
Buy or Sell
Market Insights
MigrationNew Jersey Housing Market Overview
Home prices in New Jersey show a 9% YoY growth as of January 2025. This constant increase indicates the strength of the housing market. Currently, the median home price in New Jersey is $538,400. The number of homes sold also increased by 8.5% YoY.
You can check the market’s competitiveness through the median days on the market. Homes in New Jersey now spend only 47 days on the market before going under contract. All these metrics collectively indicate changes in the New Jersey housing market’s pace and affordability.
What Does It Mean for Home Buyers and Sellers?
You can check the market’s competitiveness through the median days on the market. Homes in New Jersey now spend only 47 days on the market before going under contract. All these metrics collectively indicate changes in the New Jersey housing market’s pace and affordability.
What Does It Mean for Home Buyers and Sellers?
- If You're a Buyer: You have less negotiation power as the mortgage rate is between a steep 6.88% and 6.99%. Moreover, New Jersey homes for sale take only 47 days to go under contract. So, you can buy a house if competition is low and home prices drop.
- If You're a Seller: You can profit from growing prices and high demand near your area. The current increase of 8.5% in prices brings you more opportunities to make a profit on the sale of your home.
New Jersey Housing Supply
New Jersey's housing supply will grow as new construction expands. In January 2025, homes for sale in New Jersey rose just 2.7% YoY, with around 21k properties currently available. With only 2 months of supply, the market favors sellers. Fewer months of supply point to a seller’s market, while more months indicate a buyer’s market.
What Does It Mean for Home Buyers and Sellers?
If You're a Buyer: With limited inventory and slow growth in homes for sale, competition is fierce. 2 months of supply and high median home prices in NJ signal a seller’s market. So, you may have to endure a bidding war to buy the home of your dreams. If You're a Seller: You must act fast and sell your home before more inventory hits the NJ real estate market and property prices drop. Rising inventory could lower demand and lead to fewer offers from buyers. To attract buyers, focus on staging and marketing your home.
What Does It Mean for Home Buyers and Sellers?
New Jersey Housing Demand
The percentage of homes selling above the list price is a key indicator of housing demand. When more homes sell for more than the list price, it shows strong buyer competition and high demand. A decline suggests more supply. Tracking this trend helps you gauge market competitiveness.
In January 2025, nearly 46% of homes sold above the list price, while only 16% saw price reductions. The 100% sale-to-list price ratio indicates strong, profitable sales for sellers.
What Does It Mean for Home Buyers and Sellers?
If You're a Buyer: The current New Jersey housing market has almost no metrics that favor you. Only 16% of homes with price drops suggest more bidding wars among New Jersey home buyers. High median prices and mortgage rates make it a tough time for home buyers. If You're a Seller: You'll make a lucrative sale if you sell now. With a 100% sale-to-list price ratio and limited housing supply, you have all the negotiation power.
In January 2025, nearly 46% of homes sold above the list price, while only 16% saw price reductions. The 100% sale-to-list price ratio indicates strong, profitable sales for sellers.
What Does It Mean for Home Buyers and Sellers?
Is It a Buyer’s or Seller’s Market in New Jersey?
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Balanced
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Buyer’s Market
Seller’s Market
Strong Seller: Sellers can close deals quickly. Buyers feel overwhelmed amid low inventory, price jumps, and bidding wars.
Is It a Buyer’s or Seller’s Market in New Jersey?
As of January 2025, home sellers in the NJ real estate market have an advantage due to increased prices and limited supply. The median days on market, 47 days, also favors sellers.
The current mortgage rate will reach almost 7%, which may reduce buying power. Additionally, only a 0.2% rise in new home listings does not provide many options to attract new home buyers in New Jersey. These trends vary significantly within New Jersey's diverse markets. You should check your local real estate trends before you invest.
New Jersey Housing Market Insights
The housing market in New Jersey is highly competitive compared to the nationwide market. New Jersey property prices are rising quickly. The median home price ($538,400) is more than the national median price of $418,489. New Jersey housing inventory trends indicate available homes for sale, but the number is growing slowly. Currently, 21,494 homes are available in the Garden State.
Housing markets like Woodbury are highly competitive. With home prices rising 34% YoY and a sale-to-list price ratio of 101%, Woodbury is a seller’s market. Meanwhile, Atlantic City shows a different trend, with median days on the market at 119. The sale-to-list price ratio of 96% and only 15% of homes selling above the asking price point to a buyer’s market. But overall, NJ’s housing market favors home sellers. If you’re buying a house in NJ, you should wait until the prices drop. Also check for local moving expenses and HOA fees.
Housing markets like Woodbury are highly competitive. With home prices rising 34% YoY and a sale-to-list price ratio of 101%, Woodbury is a seller’s market. Meanwhile, Atlantic City shows a different trend, with median days on the market at 119. The sale-to-list price ratio of 96% and only 15% of homes selling above the asking price point to a buyer’s market. But overall, NJ’s housing market favors home sellers. If you’re buying a house in NJ, you should wait until the prices drop. Also check for local moving expenses and HOA fees.
Nationwide Migration Trends
New Jersey has the largest population and the highest number of jobs in its history. According to the U.S. Census Bureau, the state has 9,500,851 residents. New Jersey leads the Northeast region in year-over-year population growth, with an increase of 1.3% YoY. It is also among the top 10 states for population growth.
NJ also has a conspicuous trend of outbound as well as within-the-state migration. It ranks 4th in outbound migration. Many New Jerseyers chose the urban areas of New Jersey, Texas, and North Carolina as destinations. High property taxes and home prices have driven families toward more affordable markets. This migration mirrors broader trends in the national cost of living index. New Jersey’s cost of living is 11% higher than the national average. In contrast, states in the South and Midwest offer more affordable living options.
NJ also has a conspicuous trend of outbound as well as within-the-state migration. It ranks 4th in outbound migration. Many New Jerseyers chose the urban areas of New Jersey, Texas, and North Carolina as destinations. High property taxes and home prices have driven families toward more affordable markets. This migration mirrors broader trends in the national cost of living index. New Jersey’s cost of living is 11% higher than the national average. In contrast, states in the South and Midwest offer more affordable living options.
Frequently Asked Questions
How have New Jersey house prices changed over the past year?
New Jersey’s median home prices have continued to rise over the past years, driven by high demand and low inventory. The median house prices have increased at an average growth rate of 9%, with multiple regions seeing considerable double-digit percentage growth. You can check your home’s fair market value with our free home value estimator.
When will house prices drop in NJ?
New Jersey home prices won't drop soon. Statewide prices rose 9% YoY in January 2025. Markets like Trenton and Atlantic City saw significant price gains. Experts forecast continued growth in housing demand in 2025, which will keep prices up.
What’s the average home price in NJ?
The average house price in New Jersey varies depending on the type, size, and local market conditions. It typically ranges from $488,200 for condos to $539,800 for single-family homes. If you dream of buying a home, you can find the cheapest NJ houses within your budget
What are the NJ housing market predictions for 2025?
The New Jersey real estate market is expected to generate higher profits for home sellers. However, higher price growth and rising mortgage rates will make it difficult to find affordable housing. Still, the demand for homes may remain strong due to population growth.
Is this a good time to buy a home or sell a home in New Jersey?
You must check for real estate trends in New Jersey regarding housing prices and inventory. Sellers can benefit from high demand and rising prices. However, if the mortgage rates are stable and there is plenty of housing inventory, that’s the best time to buy a house in New Jersey
How does New Jersey’s housing market compare to the national market?
The housing market in New Jersey surpasses national performance through strong price gains and competition. Limited supply and high demand in NJ drive market prices above national averages.
What are the steps to buy homes in New Jersey?
The steps to purchasing a house in New Jersey must start with a clear budget and mortgage pre-approval. Buyers should then search for homes for sale in New Jersey, submit offers, secure loans, and complete the closing process.
How can I list my home for sale in New Jersey?
You can list your home for sale with a Flat Fee MLS New Jersey listing service. High-tech MLS listing sites like Houzeo automatically assign the right MLS paperwork based on your location. 🚀
What is the average mortgage rate for buyers in New Jersey?
The average mortgage rate for buyers in the NJ housing market fluctuates between 6.8% to 7%. It depends on the market and the borrower's credit score. Always check current rates with lenders.
What is the average cost of living in New Jersey?
The cost of living in New Jersey is not as low as that of other states. It’s 11% higher than the national average. Housing alone is 30% higher than the national average. The typical single-family home in New Jersey costs $539,800 with regional price variations. Necessities such as food, clothing, and groceries are around 1% higher than the national average. You can check your local region’s cost of living using our free cost of living calculator in New Jersey.
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