The RightWay Report: Northeast NJ Market Recap – March 2025

As the new year gained momentum, Northeast New Jersey’s housing market continued to evolve, presenting both challenges and opportunities for buyers and sellers alike. Let’s break down the latest trends that shaped the region.

Home Prices Surged as Inventory Shrunk

The median home price in Northeast NJ saw another strong month of appreciation, rising 13.0% statewide to $565,000. Bergen County led the charge with a 19.2% jump to $820,000, while Essex County homes climbed 11.7% to $650,000. Towns like Maplewood and South Orange experienced record-breaking sales, with prices skyrocketing 107.1% and 39.1%, respectively.

Sellers Held Power with Competitive Pricing

Sellers reaped the benefits of strong demand, with many homes selling above the list price. In Essex County, homes received 107.1% of their asking price. In West Orange, sellers secured 4.2% more for their homes compared to this time last year. This competitive landscape showed that well-priced homes continued to attract bidding wars, making it an ideal time for homeowners to list.

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Inventory Shortages Pushed Buyers to Act Quickly

Despite new listings increasing in some areas—such as Jersey City, where new listings rose 51.9%—overall inventory remained tight. Essex County saw a 23.6% drop in available homes, while Union County fell 21.3%, contributing to a statewide inventory decline of 11.1%. Months of inventory stayed well below a balanced market at just 1.5 to 2.5 months in most counties.

Affordability Continued to Decline

As home prices climbed, affordability remained a growing challenge. The Housing Affordability Index dropped 13.3% year-over-year, reflecting rising prices and continued upward pressure from mortgage rates. However, buyers remained active, with closed sales rising 8.9% statewide and pending sales up 8.7%.

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Days on Market and Buyer Competition

Homes moved at different paces depending on location. In Essex County, the average days on market dropped to 38 days, while in Maplewood, the timeframe plummeted to just 25 days. However, some areas, like Jersey City, saw longer selling times, with days on market increasing by 53.3%.

Key Takeaways for Homeowners and Buyers

• Sellers: If inventory levels remain tight, price appreciation may continue through the spring market. Historically, low supply in the first quarter has kept seller leverage high, making this an optimal time to list. However, if more sellers enter the market, competition could ease slightly later in the year.

• Buyers: Demand remains strong, and with limited supply, competition is expected to persist. If interest rates stabilize or decline, affordability could improve, opening more opportunities. However, in commuter-friendly areas, multiple-offer scenarios may continue, requiring a strategic approach to secure a home.

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.

This report recaps the latest market data from January 2025, released on February, 24th 2025. 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.