New inventory gives buyers more negotiating power, but high borrowing costs keep demand in check. New Jersey’s real estate market is shifting into more balanced territory as rising prices and some of the highest mortgage rates in the nation continue to weigh on buyers.
The statewide median price reached about $584,700 in August, requiring household incomes well above $150,000 to comfortably purchase a typical home. Mortgage rates averaging near 6.85 percent remain a major hurdle.
Inventory has improved, increasing more than 10 percent compared with last year. Buyers now have more choices, and sellers are seeing properties stay on the market longer than during the frenzied pandemic boom. Homes currently sit for an average of 43 days before going under contract.
Closed sales are down across most categories. Condos and townhouses have been hit hardest, with transactions falling nearly 10 percent year-over-year. Single-family homes continue to show stronger demand, while adult-community properties are benefiting from new supply and steady interest from downsizing residents.
Market performance varies widely by location. North and Central Jersey remain competitive, especially in desirable school districts or areas with strong NYC commuter access. Continued demand from New York City buyers helps keep pricing elevated in those regions.
Some communities are seeing notable price corrections. Spotswood reported a 25 percent year-over-year drop in its median list price earlier this year as buyers pulled back in response to rising rates.
South Jersey markets, including Camden and Atlantic counties, rank among the most affordable in the state and are also seeing some of the sharpest adjustments. Camden’s median price sits near $325,000, although parts of the county remain vulnerable to economic shifts.
Coastal luxury areas such as Sea Girt and Deal have begun to show cooling as well, following years of fast appreciation.
Mid-priced homes between $350,000 and $500,000 are recording the most price cuts statewide. Roughly one in five listings in that range lowered asking prices during early fall.
Despite slower sales and moderating price growth, sellers still maintain some advantage. Months of supply remain below balanced conditions, though rising inventory has eased bidding pressure that once defined the market.
National trends are influencing the shift. U.S. existing home sales recently hit a seven-month high, but economists warn that affordability concerns and job market uncertainty could limit momentum into 2026.
While homebuyers navigate challenges, new rental options continue to expand in areas like Jersey City. Micro-apartments and fully furnished studios near transit are attracting commuters who want quick access to Manhattan without the cost of living there.
Those looking to track changing market conditions, community trends, and listings across the Garden State can find updates at https://explorenewjersey.org/category/real-estate/.
New Jersey’s housing market is cooling from historic highs, yet demand remains strong enough to prevent a downturn. The state heads into 2026 with more choices for buyers and a noticeable shift away from the overheated pace of recent years.
