New Jersey Housing Market Recap for August 2025

I've been watching this market closely for my clients, and I wanted to share what I'm seeing out there. July 2025 brought some welcome changes to our New Jersey housing landscape. The good news? We're finally seeing hints that the market is finding its footing again.

What's Really Happening Out There

Here's the straight story: inventory is creeping up in many areas, which means you're not walking into quite the same feeding frenzy we saw this spring. Don't get me wrong—demand is still strong, and good homes are moving. But I'm not seeing my buyers pulled into those heart-stopping bidding wars as often. That's a relief for everyone involved.

For sellers, the reality check is this: well-priced homes are still drawing quick offers, but buyers have gotten smarter and more selective. The days of throwing any price on a decent home and watching offers pour in? Those are behind us.

As the market continues to shift as it is, pricing will be very tricky, strategic, and calculated. A lot goes into that process. Surely for the highly skilled broker. Additionally, when we operate in multiple markets, inspection issues become magnified and problematic. Another area of planning and special skill sets are needed to navigate through those minefields.

The Numbers That Matter to You

Mortgage rates are still the elephant in the room. Yep, they're higher than we'd all like, but here's what I tell my clients: most experts expect some modest easing later this year. Many buyers are choosing to get in now with the plan to refinance down the road. That’s called the “Marry the house, date the rate” approach. Look, I've seen too many people get hurt by banking on refinancing. Let's find you a home you can comfortably afford at today's rates. If rates drop later, great - you can refinance and improve your situation. But you won't be house-poor waiting for that to happen."

Right now, the rates are pretty reasonable. We may see a slight drop in rates, but not really enough to plan on refinancing anytime soon. Your best bet is to shop smart, buy smart. 

What I mean by this is, make sure what the house is really worth in today's market, then offer appropriately. Find the house you want and go for it. If the rates happen to go down low enough to save you enough to refinance, that's a win, but don't plan for that; let that be a bonus. 

There are more opportunities coming on the market every day, for sure!

The technical stuff you might hear thrown around: "months' supply" just means how long it would take to sell everything currently on the market if no new homes were listed. A normal, balanced market runs about 5-6 months. Right now, most of our counties are sitting between 1.5 and 2.0 months. Translation? Your choices are still limited, but the pressure has definitely eased.

County by County: What I'm Seeing

Bergen County 949 new homes hit the market in July, with 719 going under contract. That's a 76% absorption rate—still strong, but not the crazy pace we saw earlier this year. With 1.9 months of supply, this market still favors sellers, but buyers aren't getting steamrolled anymore.

What this means for you: If you're buying in Bergen, come prepared, but don't panic. The right home at the right price will still move fast. If you're selling, presentation and pricing matter more than ever.

Essex County 486 new listings, 416 contracts. At 86% absorption and 1.7 months of supply, Essex is humming along nicely. This feels like a market where both sides can win if they're realistic.

It seems every neighborhood, every town has its own pace right now. Some are slowing more than others, some are still smoking hot, depending on what the attractions are there. It may be schools, transportation or maybe taxes. Whatever it may be, it is definitely town by town.

Middlesex County Here's something interesting—842 contracts on just 819 new listings. That's a 103% demand ratio, meaning buyers are snapping up homes faster than they're hitting the market. At 1.5 months of supply, this is still one of our hottest counties.

My take: Middlesex buyers need to be ready to move quickly, but sellers shouldn't get overconfident about pricing.

Morris County has 592 new homes, 505 contracts (85% absorption), and just 1.3 months of supply. Morris continues to be a steady, reliable market. Good homes move; overpriced ones sit.

Somerset County is almost perfectly balanced with 384 new listings and 385 contracts. At 100% absorption and 1.5 months of supply, this market feels sustainable for both buyers and sellers.

The almost perfectly balanced market is temporary, in my opinion. It may be like that for only a few more months. As the days on market continue to rise, inventory will begin to increase, and the slight shift will deepen. The unknown is how far away it is and how much the shift will be; whatever it is, I feel it will be slow and not sudden.

Union County 374 new listings, 354 contracts (95% absorption). At 1.5 months of supply, Union is performing consistently with most of northern New Jersey.

Passaic County 387 new listings, 346 contracts (89% absorption). With 1.9 months of supply, there's a bit more breathing room here for buyers, but not dramatically so.

The Outer Counties: More Options Opening Up

Warren County 142 new listings, 119 contracts (84% absorption). At 1.7 months of supply, Warren is starting to offer more choices for buyers willing to look a bit further out.

Sussex County Here's where things get interesting for buyers: 325 new listings but only 239 contracts (74% absorption). At 2.1 months of supply, Sussex is giving buyers the most options we've seen in a while.

What I'm telling clients: If you're flexible on location and looking for value, Sussex and Warren might be worth the drive. Just make sure the commute works for your lifestyle.

My advice: For buyers who are flexible on location and focused on value, Sussex and Warren are worth a hard look — just make sure the commute works for your lifestyle. For sellers in Union and Passaic, demand is still strong, and now may be the right window before the market loosens further.

My Advice Moving Forward

After 25+ years in this business, here's what I know: markets like this reward patience and preparation on the buying side, and honesty and realism on the selling side.

For Buyers: Keep your financing locked and loaded, but don't rush into something that doesn't feel right. You have more options now than you did six months ago. Use them wisely.

For Sellers: The market is still working in your favor, but buyers are more informed and cautious. Price it right, present it well, and be ready to negotiate. The days of "take it or leave it" are fading.

The bottom line? This feels like a more sustainable market for everyone. As your agent, that's exactly what I want to see.

My Outlook for the Rest of 2025

We’re heading into a period where the market feels steady on the surface, but underneath it’s already shifting. Inventory is starting to climb slowly, and as days on market stretch longer, buyers will begin to gain ground. I don’t expect a dramatic drop or crash this year — more like a gradual rebalancing that gives the market some breathing room.

• For Sellers: The best window to maximize value is sooner rather than later. With Union and Passaic still moving quickly, those who list now will benefit from strong absorption rates before more inventory builds toward year-end.
  

• For Buyers: Opportunity grows as we move deeper into the year, especially in Sussex and Warren where supply is loosening. If you’ve been waiting for more choice — or a bit more negotiating power — the second half of 2025 will open that door.
  

Key Insight

The opportunity isn’t in trying to “time the bottom” — it’s in knowing where the balance is shifting first. For value seekers, the outer counties are already tilting toward buyer advantage. For sellers, Union and Passaic still favor action now.

Ready to navigate this market? I'm here to help you make sense of it all and find the right opportunity for your situation. Let's talk.