The February 2025 NJ Market Recap

In the latest report, the Northeast New Jersey real estate market continues to reflect resilience and evolving trends. Here’s a recap and analysis of key shifts impacting homeowners and buyers in Essex, Hudson, and Union counties.

1. Prices Are Trending Upward
Northeast NJ continues to experience strong price appreciation. Essex County saw a 15.2% year-over-year median sales price increase, reaching $720,000, while Union County homes rose 11.6% to $625,000. Hudson County’s median price climbed 9.0% to $577,500. These gains reflect competitive demand despite affordability concerns.

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2. Sellers Are Holding Strong on Price
Sellers are capitalizing on strong demand, with most homes selling above the list price. Essex County saw sellers receiving an average of 109.1% of their asking price, while Union County followed closely at 105.5%. Jersey City’s market is particularly competitive, with homes selling at 104.3% of the list price. These trends suggest that well-priced homes continue to attract multiple offers.

3. Inventory Remains Tight, Keeping Pressure on Buyers
Inventory shortages persist, particularly in Essex and Union counties. Essex County’s housing supply fell 23.9%, and Union County’s dropped 20.0%, pushing months of inventory down to 1.4 months, well below a balanced market. Hudson County, however, saw a 3.5% rise in active listings, slightly easing the pressure.

4. Affordability Continues to Decline
Housing affordability remains a challenge. The Affordability Index dropped 10.2% statewide, reflecting the combined impact of rising home prices and interest rates. Despite this, buyer activity remains strong, with pending sales increasing in key markets such as Jersey City (+6.5%) and Union Township (+1.4%).

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5. Homes Are Selling Faster in Key Markets
The pace of sales has accelerated in Essex and Union counties. Essex homes are now selling in 31 days on average, down 18.4% year-over-year, while Union County’s days on the market dropped 6.3% to 30 days. In contrast, Hudson County’s average days on the market remained steady at 35, highlighting the importance of local market nuances.

6. Buyer Demand Remains High
Despite affordability challenges, buyers are still actively searching for homes. Closed sales increased in key areas, including Hudson County (+22.6%), Jersey City (+9.5%), and Union Township (+12.0%). These figures indicate that well-positioned homes continue to sell quickly in high-demand locations.

Key Takeaways for Homeowners and Buyers

• Sellers: With inventory low and demand high, now is an ideal time to list. Our team’s pricing strategies can help you maximize your home’s value.

• Buyers: Competition remains strong, but opportunities exist with the right strategy. Our in-house lending solutions can help you navigate the market effectively.

Let’s Talk

Whether you’re buying, selling, or just exploring your options, our team is here to guide you every step of the way. Call us today for expert market insights and tailored real estate solutions.

All data in this report is sourced from NJ Realtors®. Consumers can find public market reports on the NJ Realtors® website: https://njar-public.stats.10kresearch.com/reports.