Northern New Jersey’s real estate market has always been a story of fast shifts and tighter margins than anyone expects. Over the summer, many believed we were finally seeing the first signs of inventory recovery. By August, the number of homes on the market across Bergen, Essex, Hudson, Passaic, and Morris Counties had climbed above both 2023 and 2024 levels. The curve appeared to follow a familiar 2022 pattern, and for a moment, it looked like inventory could surpass anything we’d seen in recent years. But that surge proved temporary. Instead of continuing upward, listings took a sharp dip as summer turned to fall, settling right back down to the same record-low inventory levels seen in 2023 — the tightest housing supply the region has seen in four years.
By September, the decline became even more striking. The region’s available homes dropped to a new three-year low, underscoring how volatile Northern New Jersey’s real estate market has become. County by county, the numbers painted a mixed but telling picture. Bergen and Essex Counties each saw about a 3% decrease from the previous week. Hudson County dipped roughly 5%, while Passaic County — which had briefly shown a 7% rise earlier in the month — fell back to even with last year’s total. Morris County experienced the steepest drop, down 9% from the week before and now roughly 12% below its 2024 numbers.
This shrinking supply has had an immediate impact on prices. Lower inventory paired with slightly improved mortgage rates created the perfect storm for a sudden price rebound. After showing signs of leveling off in late summer, home values bounced back quickly. For the first time since 2022, the median sale price in Northern New Jersey actually dipped below the previous year’s level in September — a rare moment that was short-lived as competition among buyers reignited almost immediately.
However, despite that rebound, homes are lingering on the market longer than they did earlier in the year. This subtle but significant shift points to a more cautious buyer pool and sellers who may still be pricing based on last year’s market conditions rather than today’s reality. Many listings are taking additional weeks to go under contract, suggesting that buyers are hesitant, selective, and waiting for signs of stabilization before making major moves.
What this all adds up to is a market that’s still searching for its balance. Northern New Jersey is feeling the tension between higher borrowing costs, fewer available homes, and a lingering desire among buyers to find value in a region where affordability remains a challenge. Whether prices have truly peaked or simply paused remains to be seen, but the data suggests that while demand hasn’t disappeared, it’s starting to evolve.
For anyone following the trends closely — from longtime homeowners considering selling to new buyers waiting for an opening — this fall’s numbers serve as an important reminder: real estate in Northern New Jersey continues to move in quick, sometimes unpredictable cycles. Keeping an eye on inventory shifts and county-by-county data remains the best way to gauge where the market is heading next.
To explore more about the current housing trends and updates across the state, visit Explore New Jersey’s Real Estate section.
