The RightWay Report: Northeast NJ Market Recap – May 2025

This is the May 2025 market recap, building on insights from our previous April 2025 report, and designed to help homeowners and buyers navigate the evolving New Jersey real estate landscape. 

Let’s break down the latest trends.

Single-Family Prices Hold Firm, But Momentum Slows

According to March data, New Jersey’s median sales price for single-family homes rose to $560,000, a 7.8% year-over-year increase, and a $30,000 jump from the previous month. Condo and townhouse median prices landed at $410,000, an 8.7% YTD increase, but steady since last month.

Here’s the catch: while prices are strong, pace is slowing due to rising mortgage rates, affordability pressure, and cautious buyer sentiment. 

In Maplewood, the median price for single-family homes soared to $1.2M (+38.9% YTD), showing strong demand. By contrast, Jersey City’s single-family prices slipped 18% year over year, though condos there held firmer, attracting budget-conscious urban buyers.

What it means: The seller’s market is still intact, but buyers are pressing pause in some areas, especially where rising costs stretch budgets. Condos and townhouses continue to shine as the go-to for affordability.

What's your home’s value? Find out with the RightWay Valuation Tool.

Inventory Shifts: Tight in the Suburbs, Easing in Cities

Essex County’s single-family inventory fell 17% YTD, shrinking months of supply to just 2.2 — a strong seller’s signal. Union County saw an 8.1% decline, leaving supply at 1.9 months. While SFH Hudson County took a 10.6% drop, the condo inventory stood apart with an increase of 17.8% - a good sign for city dwellers looking for more affordable options. 

What it means: Suburban inventory squeezes are fueling competition, while urban markets are softening slightly — a gift to patient buyers.

Days on Market: Slowing Slightly, But Hot Spots Remain Fast

Statewide, single-family homes are averaging 46 days on market, a subtle increase from last year. Yet Maplewood stands out, with homes flying off the market in just 17 days (-41%), underscoring its premium demand. Meanwhile, Jersey City shows buyers taking longer, reflecting budget recalibrations and more supply to choose from.

What it means: Well-priced homes in desirable areas are still snapped up fast. Slower-moving markets offer room for negotiation — if you know where to look.

Affordability Remains Challenging

Statewide, the affordability index dropped from 84 to 81 this month. Buyers need higher incomes to qualify for the same properties as last year. This shift is particularly pronounced in suburban hotspots like Maplewood, where rapid price appreciation outpaces wage growth. Urban markets, meanwhile, are seeing moderate condo price growth, offering a softer entry point.

What it means: Buyers will explore alternative loan products, housing types, and secondary markets. Sellers should recognize that even in a strong market, affordability ceilings are real.

Set up a personalized home search with the RightWay Home Search Tool to get ahead of new listings.

Key Takeaways for Homeowners and Buyers

• Seller: While it's still a seller's market, competitive pricing and the promise of a smooth transaction are the only ways to attract discerning buyers. 

• Buyers: Keep an eye on inventory levels across all markets. This will help identify opportunities and areas where competition isn't as fierce.

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Need advice on how these trends impact your plans? Contact us today to strategize the RightWay.

This report reflects the latest (March 2025) market activity, published in March and recapped here in April. 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.