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New Jersey Housing Market: Complete 2025 Analysis for Buyers and Sellers

Last Updated: October 2025

The New Jersey housing market continues to evolve as we head into the final quarter of 2025, presenting both challenges and opportunities for buyers and sellers across the Garden State. Whether you’re a Staten Island resident exploring more affordable options across the Hudson River or a current New Jersey homeowner considering your next move, understanding the latest market dynamics is essential for making informed real estate decisions.

At Robert DeFalco Realty, we’ve been serving the Staten Island and New Jersey real estate markets for over 30 years. Our team has witnessed multiple market cycles, and we’re here to provide you with expert analysis based on the latest October 2025 data—helping you navigate this transitioning market with confidence.

Thinking of buying or selling in New Jersey? Get a free personalized market analysis from our expert team.

New Jersey Housing Market Conditions: October 2025 Data

The New Jersey housing market in October 2025 tells a story of gradual transition from the seller-dominated conditions of recent years toward a more balanced marketplace. Here’s what the latest data reveals.

According to Redfin’s August 2025 market analysis, the median home price in New Jersey reached $584,700, representing a 5.8% year-over-year increase. While prices continue to rise, the pace of appreciation has moderated significantly from the double-digit gains seen during the pandemic years. Zillow reports a similar trend, with their New Jersey Home Value Index showing an average home value of $569,314, up 4.6% over the past year.

Current Market Metrics (October 2025):

  • Median Sale Price: $584,700 (+5.8% YoY)
  • Homes for Sale: 32,001 properties (+10.6% YoY)
  • Days on Market: 43 days (up from 34 days last year)
  • Homes Selling Above List Price: 51.4% (down 6.6 percentage points YoY)
  • Sale-to-List Price Ratio: 101.6% (down 1.2 points YoY)
  • Months of Supply: 3 months
  • Homes with Price Reductions: 19.0% (up from 17.0% last year)

These numbers paint a picture of a market that’s cooling from its peak intensity but still favors sellers overall. The increase in inventory—from 28,973 homes to 32,001 homes available—represents the most significant shift, giving buyers more options than they’ve had in several years.

Median Home Prices by Property Type

The New Jersey real estate market encompasses diverse property types, each performing differently in the current environment.

Single-Family Homes command a median price of $625,000 as of July 2025, reflecting a robust 5.9% increase in median price and 6.2% increase in average price year-over-year. Despite this strength, closed sales were down 3.4% compared to the previous year, suggesting that affordability challenges are beginning to impact transaction volume. These properties remain the most competitive segment, with many still receiving multiple offers in desirable locations.

Townhouse and Condos present more affordable alternatives, with median prices around $430,000, up 3.5% year-over-year. This segment experienced a 3.0% increase in closed sales, indicating growing demand from first-time buyers, downsizers, and investors seeking more accessible entry points into the New Jersey market.

Adult Communities for buyers aged 55 and older show a median price of $375,000, with 4.2% annual growth. Sales in this segment increased 0.9% year-over-year, reflecting steady demand from Baby Boomers and older Gen X buyers seeking low-maintenance lifestyles. Notably, inventory in adult communities expanded dramatically—up 17.4% year-over-year—giving buyers in this segment significantly more choices.

Regional Price Variations Across New Jersey

New Jersey’s real estate landscape varies dramatically by region, with proximity to major employment centers, school district quality, and local amenities driving substantial price differences.

Most Expensive Markets:

Bergen County leads with a median home price of $625,000, driven by excellent schools, Manhattan commuting access via the George Washington Bridge, and affluent communities like Ridgewood, Tenafly, and Franklin Lakes.

Essex County follows with a median of $590,000, featuring desirable towns like Montclair, known for its arts scene and diverse community, along with Short Hills, one of New Jersey’s wealthiest ZIP codes.

Monmouth County maintains a median of $575,000, combining excellent school districts with Jersey Shore access, particularly popular in towns like Rumson, Fair Haven, and Colts Neck.

Most Affordable Markets:

Camden County offers the most accessible pricing with a median of $325,000 in communities like Cherry Hill and Haddonfield.

Cumberland County represents New Jersey’s most affordable option at a median of $280,000, located in the southern part of the state.

Atlantic County shows a median of $310,000, though coastal properties command premium pricing. Atlantic City and surrounding shore areas have seen strong appreciation, with forecasts predicting nearly 7% gains by the end of 2025.

For Staten Island Residents: New Jersey represents compelling value when compared to New York City prices. Communities like Bayonne, Jersey City, and towns along the Hudson-Bergen Light Rail offer similar or shorter commutes to Manhattan than some Staten Island neighborhoods, often with more square footage for your money. The typical Staten Island homeowner can gain 20-30% more living space by crossing into New Jersey at comparable price points.

Is NJ a Buyer’s or Seller’s Market in 2025?

The question on everyone’s mind is whether New Jersey currently favors buyers or sellers. The answer: we’re in a transitioning seller’s market that’s gradually becoming more balanced.

With 3 months of housing supply available, New Jersey remains below the 5-6 months typically considered a balanced market. However, the 10.6% year-over-year increase in inventory marks a significant shift from the extreme seller dominance of 2021-2023.

Key indicators show the changing dynamics. While 51.4% of homes still sell above list price—a clear seller advantage—this percentage has declined 6.6 points from the previous year. Similarly, the sale-to-list price ratio of 101.6% means homes are selling slightly above asking price on average, but this has decreased from 102.8% the prior year.

Days on market tell an important story. At 43 days average, homes are taking nine days longer to sell than last year. This gives buyers more time to make informed decisions without the intense pressure of immediate offers that characterized the peak market.

What This Means for Home Buyers in New Jersey

The current market environment offers several advantages for New Jersey home buyers compared to recent years.

More Inventory Means More Choices. With 32,001 homes for sale compared to approximately 29,000 last year, buyers finally have options. You can compare multiple properties, revisit homes for second looks, and make more deliberate decisions without feeling rushed.

Negotiation Power Is Returning. While you may still face competition on the most desirable properties, you have more negotiating leverage than in years past. Sellers are more willing to consider inspection contingencies, repair requests, and closing cost assistance. The percentage of homes with price reductions has increased to 19%, up from 17% last year.

Less Pressure, But Still Competitive. Don’t mistake improving conditions for a buyer’s market free-for-all. Well-priced homes in sought-after locations still attract multiple offers. Properties with modern updates, desirable school districts, and convenient commutes to New York City continue to sell quickly.

Mortgage Rates Impact Affordability. Current mortgage rates hovering between 6.5% and 7% significantly impact your purchasing power compared to the sub-3% rates of 2020-2021. A buyer who could afford a $600,000 home at 3% rates may only qualify for a $450,000 home at current rates. Factor this carefully into your budget planning.

Staten Island Buyers Should Explore NJ Options. If you’re currently renting or owning in Staten Island, relocating from NYC to New Jersey might offer better value. Many New Jersey communities provide equivalent or shorter commutes to Manhattan with more space and often better public services.

What This Means for Home Sellers in New Jersey

New Jersey home sellers still maintain significant advantages, but success requires more strategy than in the peak market years.

Strong Pricing Power Remains. With a 101.6% sale-to-list price ratio, properly priced homes are still achieving full asking price or better. The key word is “properly priced”—overpricing based on 2022-2023 comparables will result in your home sitting on the market while buyers move to better-priced alternatives.

Precision Pricing Is Critical. Work with experienced agents who understand current market conditions and can provide detailed comparative market analysis. Properties priced 5-10% above market value in hopes of negotiating down are instead sitting unsold as buyers have more options to choose from.

Presentation Matters More Than Ever. Professional staging, high-quality photography, and home improvements deliver measurable returns in this environment. Homes that show move-in ready command premium prices, while properties needing work face increased buyer scrutiny and lower offers.

Plan for Realistic Timelines. With an average 43 days on market, plan your selling timeline accordingly. If you need to relocate for work or have already purchased your next home, build in buffer time. The days of listing on Friday and having multiple offers by Monday have moderated in most markets.

Target Spring 2026 for Maximum Exposure. If your timeline is flexible, the spring selling season historically brings the most buyers to the market. April through June typically sees the highest inventory turnover and strongest competition among buyers.

NJ Housing Market Forecast: What to Expect in 2025-2026

Looking ahead through late 2025 and into 2026, experts predict continued moderation rather than dramatic shifts in New Jersey’s housing market.

Most real estate analysts forecast 2-4% annual price appreciation for New Jersey homes through 2025 and into 2026. This represents healthy, sustainable growth rather than the unsustainable double-digit increases that characterized the pandemic years.

Several factors support continued price growth despite moderating conditions. New Jersey’s limited inventory remains a structural challenge—the state simply isn’t building enough new homes to meet demand. Strong job markets in pharmaceuticals, finance, and technology continue attracting skilled workers to the region. Proximity to New York City and Philadelphia provides enduring appeal, especially as remote work flexibility allows people to live farther from office locations while maintaining access to major employment centers.

Atlantic City and surrounding shore areas show particular strength, with some forecasts predicting nearly 7% price gains by the end of 2025. The combination of lifestyle appeal, investment property potential, and ongoing development projects supports this optimistic outlook.

Will the New Jersey Housing Market Crash?

One of the most common questions we hear at Robert DeFalco Realty is whether New Jersey’s housing market will crash similar to 2008. The short answer: a dramatic crash is unlikely.

Today’s market fundamentals differ significantly from the conditions that preceded the 2008 financial crisis. Current lending standards are much stricter—gone are the days of no-documentation loans and zero-down-payment mortgages to unqualified buyers. Today’s borrowers have been thoroughly vetted and demonstrate genuine ability to repay their loans.

Limited inventory provides a floor under prices. Even with the recent 10.6% increase in available homes, New Jersey has just 3 months of supply. This scarcity prevents the dramatic price drops seen in markets with surplus inventory.

Could we see a modest correction? Possibly. Some overheated submarkets might experience 5-10% price adjustments, particularly in areas where prices surged 30-40% during the pandemic years. However, a market-wide crash similar to 2008 would require a combination of factors not currently present: widespread unemployment, lending market collapse, and massive inventory surplus.

Best Time to Buy a House in New Jersey

Timing your New Jersey home purchase involves balancing inventory availability, competition levels, and personal readiness.

Spring Season (April-June) brings the most inventory to market as sellers traditionally list before the summer season. You’ll have maximum choice and selection, but you’ll also face the most competition from other buyers. Prices tend to be at their highest during this peak selling season.

Summer Season (July-August) maintains strong inventory with slightly less competition as some buyers pause during vacation season. Families with school-age children prioritize closing before the school year starts, creating urgency that benefits sellers.

Fall Season (September-November) offers a sweet spot for many buyers. Inventory remains good, competition decreases as casual buyers drop out, and sellers who listed in spring/summer may be more motivated to close before the holidays.

Winter Season (December-March) typically presents the best opportunities for deals. Inventory is lower, but sellers on the market during this period are often highly motivated—job relocations, financial pressures, or inherited properties. You’ll face minimal competition from other buyers. However, your selection will be more limited.

Current Market (Late 2025): If you’re financially ready with stable employment, adequate down payment, and mortgage pre-approval, the current environment offers a reasonable entry point. Waiting for “perfect” market conditions often means missing opportunities as prices continue their upward trajectory.

New Jersey Housing Market by County: Where to Buy in 2025

New Jersey’s diverse geography creates distinct housing markets across its 21 counties. Understanding these regional variations helps buyers identify the best locations for their needs and budget.

North Jersey Housing Market

North Jersey commands premium pricing due to proximity to New York City, with some of the state’s most expensive real estate markets.

Bergen County leads the state with a median home price around $625,000. This premium reflects exceptional public schools consistently ranked among the nation’s best, easy Manhattan commuting via multiple bridges and highways, and affluent communities like Ridgewood, Englewood, and Tenafly. For professionals working in Manhattan, Bergen County offers suburban living with 30-45 minute commutes.

Essex County maintains a median around $590,000, featuring tremendous diversity from urban Newark to affluent Short Hills. Montclair has become particularly popular with families seeking walkable downtown areas, arts and culture, and highly rated schools. The county provides excellent NJ Transit access to Manhattan.

Hudson County represents New Jersey’s most urban market, with Jersey City and Hoboken leading the way. While condos and apartments dominate, the area offers the shortest commutes to Manhattan—some neighborhoods are closer to Wall Street than parts of Brooklyn. Median prices vary dramatically by neighborhood, ranging from $400,000 for condos to over $1 million for waterfront properties. Best Neighborhoods in Jersey City provides detailed analysis of this dynamic market.

For Staten Island residents specifically, Hudson County communities like Bayonne offer compelling alternatives with similar or improved commute times to Manhattan, often at lower price points than comparable Staten Island properties.

Central Jersey Housing Market

Central New Jersey balances suburban family appeal with more moderate pricing than the northern counties.

Monmouth County maintains a median around $575,000, offering unique appeal with both inland suburban communities and Jersey Shore beach access. Towns like Rumson, Fair Haven, and Red Bank command premium pricing, while more affordable options exist in communities farther from the coast. Excellent school districts and reasonable commutes to both New York City and Philadelphia make this county popular with families.

Middlesex County provides more affordable options with a median around $500,000. Home to Rutgers University and numerous corporate headquarters, the county offers strong employment opportunities and shorter commutes for those working in Central Jersey rather than New York City. Towns like Metuchen and Highland Park have become increasingly popular with young families.

Somerset County represents one of New Jersey’s most affluent areas, with some communities exceeding $700,000 median prices. Excellent schools, corporate campuses, and upscale suburban lifestyle define the county. However, affordable pockets exist in older commercial districts undergoing revitalization.

South Jersey Housing Market

South Jersey provides New Jersey’s most affordable housing options, with particular appeal for retirees, remote workers, and first-time buyers.

Camden County offers a median around $325,000, making it one of the state’s most accessible markets. Communities like Cherry Hill and Haddonfield provide good schools and amenities at prices well below North Jersey. The county’s proximity to Philadelphia makes it ideal for those commuting to Pennsylvania rather than New York.

Atlantic County shows a median around $310,000, though shore properties command significant premiums. Atlantic City continues its renaissance with new development projects, and surrounding shore communities like Margate and Ventnor have seen strong appreciation. Forecasters predict Atlantic City area homes could appreciate nearly 7% by the end of 2025, making it one of the state’s hottest investment markets.

Cumberland County represents New Jersey’s most affordable market with a median around $280,000. While more rural and distant from major employment centers, it appeals to remote workers, retirees, and those seeking maximum space for their money.

Cape May County offers unique shore community living with a mix of year-round residences and vacation properties. Prices vary dramatically based on proximity to the beach, with ocean-front properties commanding premium pricing while inland areas remain affordable.

Several powerful trends continue reshaping New Jersey’s real estate landscape, creating opportunities for informed buyers and sellers.

The NYC Exodus Effect on New Jersey Housing

The migration of New York City residents to New Jersey, which accelerated during the pandemic, shows no signs of slowing. Over 75,000 New Yorkers relocated to New Jersey in 2024 alone, representing a 12% increase from the previous year.

This exodus stems from several factors beyond just remote work flexibility. Manhattan rental prices have rebounded to near-record highs, with the average one-bedroom apartment exceeding $4,500 per month. For the same monthly cost, buyers can afford a mortgage on a $600,000 home in many New Jersey communities—typically a three-bedroom house with a yard, garage, and more space.

Transportation infrastructure makes the transition seamless for many. The PATH train provides direct service from Jersey City, Hoboken, and Newark to Manhattan in 15-25 minutes. NJ Transit offers extensive commuter rail and bus service, with many routes offering faster commutes than subway rides from outer boroughs.

For Staten Island families specifically, New Jersey communities like Bayonne, Jersey City, and towns along the Hudson-Bergen Light Rail offer equivalent or better access to Manhattan job centers. Many Staten Islanders are discovering they can maintain their New York employment while gaining more space and often lower property costs by crossing the state line.

New Construction and Development Pipeline

New Jersey faces a critical housing shortage, with construction not keeping pace with demand. However, several major development projects are underway that will bring new inventory to market over the next 12-24 months.

Jersey City’s development boom continues with multiple high-rise projects adding thousands of residential units. The Journal Square area is particularly active, with several projects transforming this transit hub into a residential neighborhood.

Newark’s downtown renaissance includes several mixed-use developments combining residential, retail, and office space. The city’s proximity to Newark Liberty International Airport and direct PATH service to Manhattan makes it increasingly attractive to young professionals and empty nesters.

Suburban infill development is occurring throughout the state as municipalities approve townhome and condo projects on former commercial sites. These projects provide more affordable entry points than single-family homes while maintaining suburban locations.

Understanding where new construction is occurring helps buyers identify areas poised for appreciation and additional amenity development.

Urban Redevelopment Reshaping Cities

New Jersey’s urban centers are experiencing remarkable transformations that are attracting residents who previously might have chosen suburban locations.

Newark, long overlooked by homebuyers, has seen substantial investment in its downtown core. The Prudential Center, revitalized Penn Station, and new residential developments have created vibrant neighborhoods. Home prices in some Newark neighborhoods have appreciated 15-20% over the past two years.

Jersey City continues evolving beyond the waterfront into neighborhoods like Journal Square and the Heights, where historic architecture meets new development. These areas offer more affordable entry points than the waterfront high-rises while maintaining excellent transit access.

Paterson, New Jersey’s third-largest city, is seeing early stages of revitalization with artists and young professionals discovering affordable housing stock in historic neighborhoods near waterfalls and parks.

These urban transformations create opportunities for buyers willing to purchase in transitioning neighborhoods. Properties purchased today in emerging areas may see substantial appreciation as development continues.

Mortgage Rates and Financing Options for NJ Home Buyers

Understanding current financing conditions helps buyers make realistic budget decisions and take advantage of available programs.

Current mortgage rates for 30-year fixed mortgages range from 6.5% to 7% for well-qualified buyers with strong credit scores and adequate down payments. These rates remain significantly higher than the historic lows of 2020-2021 but have moderated from the 7.5%+ peaks of 2023.

The rate environment dramatically impacts affordability. A buyer who could afford a $500,000 home at 3% rates faces monthly principal and interest payments around $2,108. The same $500,000 home at 6.75% costs approximately $3,242 monthly—a difference of $1,134 per month or $13,608 annually.

Pre-approval has become absolutely essential in today’s market. Sellers and their agents prioritize offers from pre-approved buyers who can demonstrate financing capability. The pre-approval process also helps you understand your realistic budget before falling in love with properties outside your price range.

New Jersey offers several first-time homebuyer programs through the New Jersey Housing and Mortgage Finance Agency (NJHMFA). These programs provide down payment assistance, reduced interest rates, and homebuyer education. Eligibility requirements typically include income limits and property price caps, but for qualifying buyers, these programs can make homeownership achievable.

For more details on upfront costs, review our guide on Closing Costs in New Jersey to budget for all expenses beyond your down payment.

Understanding New Jersey Property Taxes

New Jersey property taxes are the highest in the nation—a fact that surprises many first-time buyers and significantly impacts affordability calculations.

The average New Jersey property tax bill reached $9,490 annually in 2022, and many counties exceed this average significantly. Bergen County homeowners average over $11,000 annually, while Essex and Morris Counties aren’t far behind.

Property taxes vary dramatically by municipality. Two similar homes just miles apart can have vastly different tax bills based on local tax rates, municipal services, and school district funding needs. Always factor property taxes into your monthly housing budget—they often equal or exceed your homeowner’s insurance costs.

The upside of high property taxes: New Jersey offers some of the nation’s best public schools, well-maintained infrastructure, excellent emergency services, and comprehensive municipal services. Many families find the trade-off worthwhile, especially when compared to private school tuition in other states.

Property tax appeals provide one avenue for potentially reducing your bill. If you believe your home is assessed above its market value, you can challenge the assessment through your municipality’s tax appeal process. Success rates vary, but homeowners with strong comparable sales data can often achieve reductions.

Expert Strategies for Navigating the NJ Housing Market

Success in New Jersey’s competitive real estate market requires more than just financial readiness—it demands strategy, preparation, and local expertise.

For Home Buyers: How to Win in a Competitive Market

Get Pre-Approved Before Searching. In New Jersey’s competitive environment, a pre-approval letter from a reputable lender is your admission ticket to serious house hunting. Sellers won’t consider offers without proof of financing, and many listing agents won’t even schedule showings without pre-approval documentation. Meet with multiple lenders to compare rates and programs before committing.

Move Quickly on Good Properties. While homes are taking 43 days on average to sell, that statistic includes overpriced properties sitting on the market for months. Well-priced homes in desirable locations still move quickly—often within the first week of listing. Arrange showings promptly when new listings match your criteria, and be prepared to make decisions relatively quickly.

Make Strong But Smart Offers. In the current environment, you don’t need to waive all contingencies or offer $50,000 over asking to be competitive. However, your initial offer should be strong—typically within 5% of asking price for well-priced properties. Work with your agent to understand local market dynamics and recent comparable sales.

Don’t Skip the Home Inspection. Unlike the peak market years when buyers waived inspections entirely, today’s environment allows for proper due diligence. Always include a home inspection contingency, even if you’re willing to accept minor issues. Major structural, electrical, or plumbing problems could cost tens of thousands to repair—information you need before closing.

Consider Emerging Neighborhoods. The most expensive, most established neighborhoods may not offer the best value. Look at up-and-coming areas with recent investment, improving schools, and new amenities. These neighborhoods often provide better opportunities for appreciation.

Factor in Total Housing Costs. Beyond your mortgage payment, budget for New Jersey’s high property taxes, homeowner’s insurance, utility costs, and maintenance. A good rule of thumb: your total housing cost should not exceed 28-30% of your gross monthly income.

For Home Sellers: Maximizing Your Sale Price

Precision Pricing Based on Current Data. Overpricing your home is the single biggest mistake sellers make. Work with an agent who provides detailed comparative market analysis based on recent sales (not listings) of similar properties. Price your home at market value or just slightly above—within 3-5% of comparable sales.

Invest in Professional Staging. Professional staging typically costs $3,000-$5,000 but delivers measurable returns. Staged homes sell faster and for higher prices than vacant or poorly furnished properties. If full staging isn’t in your budget, at least ensure your home is decluttered, neutrally painted, and presents move-in ready.

High-Quality Photography and Marketing. In 2025, virtually all buyers begin their search online. Professional photography isn’t optional—it’s essential. Your listing photos are often the first impression buyers form, and poor photos can eliminate potential buyers before they ever visit. Consider drone photography for properties with notable exteriors or landscaping.

Time Your Listing Strategically. If possible, list in April or early May to capture the spring market surge. Avoid listing during major holidays or in late December when buyer traffic drops significantly. Thursday listings that go live before the weekend often generate strong weekend showing traffic.

Be Flexible with Showings. Make your home available for showings whenever possible, including evenings and weekends. Properties with restricted showing hours take longer to sell because they’re less convenient for buyers with work schedules.

Highlight Energy Efficiency and Updates. Today’s buyers value energy efficiency, modern systems, and recent updates. If you’ve updated your HVAC, installed new windows, or added insulation, emphasize these improvements in your listing and during showings. Provide documentation of major updates and repairs.

Consider Pre-Listing Inspections. Some sellers choose to conduct pre-listing inspections and address issues before listing. This approach can streamline the sales process and potentially justify premium pricing by marketing the home as “fully inspected with all issues addressed.”

New Jersey Housing Market FAQs

Are house prices coming down in NJ?

Home prices in New Jersey are still rising, up 5.8% year-over-year as of August 2025. However, the pace of appreciation has moderated from the double-digit gains of 2021-2022. Some specific neighborhoods and property types have seen modest corrections—particularly high-end properties and condos in certain markets—but statewide prices continue their upward trajectory.

The slowing appreciation rather than price declines reflects the market’s transition from extreme seller dominance to a more balanced environment. While growth has moderated, limited inventory, strong job markets, and New York City proximity continue supporting price increases.

Is it better to buy a house now or wait until 2025?

Since we’re currently in October 2025, the question is whether to buy now or wait into 2026. If you’re financially ready with stable employment, adequate down payment, and mortgage pre-approval, buying sooner rather than later typically makes sense.

Waiting for perfect market conditions often means missing opportunities. Even if prices moderate in certain areas, the inventory you can afford today might not be available at lower prices later. Home values have historically appreciated over time, and the best time to buy is typically when you’re financially and personally ready.

That said, if you’re stretched to afford a home at current prices and rates, waiting for improved affordability might be wise. Purchasing a home you can barely afford leaves little margin for unexpected expenses or income changes.

Is NJ a buyer or seller market?

New Jersey is currently a transitioning seller’s market. With 3 months of housing supply—below the 5-6 months considered balanced—sellers maintain advantages. However, conditions are improving for buyers compared to 2023-2024.

Key indicators show the transition: homes taking longer to sell (43 days versus 34 days last year), more inventory available (32,001 homes up 10.6%), and fewer homes selling above asking price (51.4% down from 58%). Sellers still hold power, but buyers have more negotiating leverage than in recent years.

The answer also varies by property type, location, and price range. Luxury properties show more buyer advantage, while starter homes in hot school districts remain intensely competitive.

Is the housing market expected to get better in 2025?

“Better” depends on your perspective. For buyers, the market is improving with more inventory, less intense competition, and greater negotiating power. For sellers, the market is moderating from peak conditions but still offers strong pricing and reasonable demand.

Experts predict the New Jersey market will continue this gradual balancing through late 2025 and into 2026. Expect 2-4% annual price appreciation—healthy, sustainable growth—rather than the dramatic swings of recent years. Mortgage rates may moderate slightly, improving affordability for buyers.

The most likely scenario is continued stability rather than dramatic shifts in either direction. No crash is expected, but the frenzy of 2021-2022 is unlikely to return.

What is the median home price in New Jersey?

The median home price in New Jersey is $584,700 as of August 2025 according to Redfin data, representing a 5.8% year-over-year increase. Zillow reports a similar figure of $569,314 for their Home Value Index.

However, this statewide median masks significant regional variation. Bergen County leads at $625,000 median, while Cumberland County offers homes at $280,000 median. Your actual buying power depends heavily on which part of New Jersey you’re targeting.

Single-family homes command higher prices ($625,000 median) than townhouses and condos ($430,000 median) or adult community properties ($375,000 median).

How much do I need to make to buy a house in NJ?

The income needed to buy a New Jersey home depends on the purchase price, down payment, interest rates, and total monthly debt obligations.

As a general guideline, lenders typically require that your total housing costs (mortgage, property taxes, insurance) not exceed 28% of your gross monthly income, and your total debt payments (including housing, car loans, student loans, credit cards) not exceed 36-43% of gross income.

For a median-priced $584,700 New Jersey home with 20% down ($116,940), your mortgage at 6.75% would be approximately $3,109 monthly. Adding average property taxes ($791/month) and insurance ($200/month) brings total housing costs to roughly $4,100 monthly. To stay within the 28% ratio, you’d need annual income around $175,000.

With a smaller down payment or FHA financing, you might qualify with lower income, but you’d face higher monthly payments and mortgage insurance costs.

Are New Jersey property taxes really that high?

Yes. New Jersey has the highest property taxes in the United States, with an average annual bill of $9,490 as of 2022. Many counties exceed this average significantly, with Bergen County homeowners paying over $11,000 annually on average.

Property taxes vary dramatically by municipality based on local tax rates, school district funding needs, and municipal services. Two similar homes just miles apart can have vastly different tax bills.

The high taxes fund excellent public schools, comprehensive municipal services, well-maintained infrastructure, and robust emergency services. Many families find the trade-off worthwhile, especially when compared to private school tuition costs in other states.

What are the best commuter towns in NJ for NYC workers?

The best commuter towns depend on your workplace location in New York City and your lifestyle preferences.

For Financial District/Lower Manhattan commuters: Jersey City (8-minute PATH), Hoboken (10-minute PATH), and Newark (20-minute PATH) offer the shortest commutes.

For Midtown Manhattan commuters: Towns along NJ Transit’s Northeast Corridor line like Metuchen, Rahway, and Westfield provide direct train service with 45-60 minute commutes.

For those willing to commute 60-90 minutes for more space and affordability: Montclair, Morristown, and Maplewood offer excellent schools and charming downtown areas with bus and train service.

Monmouth County shore towns like Red Bank and Long Branch provide beach lifestyle with 75-90 minute commutes via NJ Transit.

Should Staten Island residents consider buying in NJ?

Many Staten Island residents find excellent value in New Jersey, particularly in Hudson County communities like Bayonne, Jersey City, and towns along the Hudson-Bergen Light Rail.

The key advantages include more space for your money (typically 20-30% more square footage at comparable prices), equivalent or shorter commutes to Manhattan from some New Jersey locations, and often better public services and schools in suburban communities.

The considerations include different state income taxes (New Jersey has higher rates for upper-income earners), the psychological shift of leaving New York, and establishing new community connections.

For Staten Island homeowners specifically, our comprehensive guide on relocating from NYC to New Jersey provides detailed analysis of this transition.

How long does it take to sell a house in New Jersey?

The average home in New Jersey takes 43 days to sell as of October 2025, up from 34 days the previous year. However, this average includes overpriced properties that linger on the market for months.

Well-priced homes in desirable locations typically sell within 2-3 weeks, often receiving multiple offers in the first week. Properties that exceed 60 days on market without price adjustments typically indicate pricing issues, condition concerns, or marketing problems.

Factors affecting your specific timeline include property location, condition, pricing strategy, time of year (spring sells faster than winter), and current local market conditions. Working with an experienced agent who understands your local market dynamics significantly impacts your selling timeline.

Ready to Navigate the New Jersey Housing Market?

The New Jersey housing market in late 2025 presents a unique window of opportunity for informed buyers and sellers who understand current conditions and work with experienced local professionals.

Key Takeaways:

  • Buyers now have more inventory and negotiating power than they’ve had in years, with 32,001 homes available representing a 10.6% increase year-over-year
  • Sellers still command strong prices with a 101.6% sale-to-list ratio, but success requires precision pricing and professional presentation
  • The market is transitioning from extreme seller dominance to more balanced conditions, creating opportunities for both sides
  • Regional variations mean local expertise is more critical than ever—Bergen County’s $625,000 median bears little resemblance to Camden County’s $325,000 market

At Robert DeFalco Realty, we bring over 30 years of expertise serving both Staten Island and New Jersey real estate markets. As the number one real estate firm in Staten Island with deep roots throughout New Jersey, we offer unparalleled insights into cross-market opportunities and local neighborhood nuances that online data simply can’t capture.

Our team has successfully guided thousands of families through their real estate journeys, whether they’re first-time buyers stretching to afford their first home, seasoned investors building portfolios, or families relocating from New York City to New Jersey for better value and more space. We understand the unique considerations of Staten Island residents exploring New Jersey options, including commute logistics, community connections, and maximizing your purchasing power.

With 5 brokerage locations and over 400 real estate professionals, we have the resources and local knowledge to serve you anywhere in the New York-New Jersey metropolitan area. Our track record speaks for itself: thousands of successful transactions, countless satisfied clients, and deep relationships with local lenders, inspectors, attorneys, and service providers who help make your transaction smooth from contract to closing.

Ready to take the next step?

  • Call us today: (718) 667-3020 to speak with a New Jersey market specialist
  • Get a free market analysis: Contact our team for a personalized consultation
  • Browse available homes: Search our New Jersey listings updated daily from the MLS
  • Subscribe for updates: Get monthly New Jersey housing market reports and new listing alerts delivered to your inbox

Whether you’re ready to buy your first home, upgrade to more space, downsize for retirement, or sell your current property for top dollar, Robert DeFalco Realty is here to help you make the smartest real estate decision for your unique situation in today’s New Jersey housing market.

The market won’t wait—and neither should you. Let’s start the conversation about your real estate goals today.


About Robert DeFalco Realty

Robert DeFalco Realty is a full-service residential and commercial real estate brokerage specializing in all facets of real estate transactions. Since our inception in 1987, we’ve been providing award-winning real estate services to clients throughout the New York City and New Jersey markets.

As the market leader in Staten Island real estate, ranking number one in sales, service, and reputation, we’ve expanded to 5 brokerage locations serving Staten Island, Brooklyn, Manhattan, Queens, Long Island, and New Jersey. With over 400 experienced real estate professionals on our team, we’re equipped to handle any type of real estate transaction—from first-time home purchases to complex commercial deals.

Our commitment to excellence, deep local market knowledge, and client-first approach have made us the trusted choice for thousands of families and investors throughout the New York-New Jersey metropolitan area. When you work with Robert DeFalco Realty, you’re partnering with a team that treats your real estate goals as our own.

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