North Jersey Real Estate in 2025: A Market on the Move

The Northern New Jersey real estate market is making headlines this summer as it navigates a landscape of rising prices, increased listings, and shifting buyer and seller expectations. Here’s a look at what’s really happening in the region—and what it means if you’re thinking about buying, selling, or investing.
A Surge in Listings, but Inventory Still Tight
Spring 2025 has brought a welcome increase in active home listings across North Jersey. According to recent data, the state saw a 14.57% jump in active home listings in March compared to last year, and a 10.9% increase from February. In North Jersey specifically, counties like Essex, Hudson, Passaic, and Sussex all posted double-digit percentage gains in new listings month-over-month. Hudson County, for example, saw a remarkable 39.36% increase in new listings compared to February, while Morris County’s new listings surged by over 54% from the previous month.
Despite this uptick, inventory remains below historic norms. Homes are selling faster—spending an average of just 33 days on the market, which is 8% less time than last year and 25% less than in February. This means buyers need to act quickly, but they have more options to choose from than they did just a few months ago.
Prices Remain High—But the Market Is Stabilizing
The median listing price in New Jersey reached $550,000 in March, up slightly from last year. Northern counties like Bergen and Essex continue to command premium prices, reflecting ongoing demand for homes with good schools, commuter access, and vibrant communities.
While the days of frenzied bidding wars seem to be fading, sellers still hold the advantage—if they price their homes realistically. Overpricing can leave a property lingering on the market, but well-presented homes in desirable locations are moving swiftly, sometimes with multiple offers.
Interest Rates and Affordability Challenges
Mortgage rates remain in the mid-6% range, which is putting a squeeze on affordability, especially for first-time buyers. Many would-be buyers are sitting on the sidelines, hoping for rates to drop or prices to soften. But experts caution that waiting could mean paying even more down the road, as prices are not expected to fall dramatically.
What’s Hot in North Jersey?
- Essex, Hudson, and Passaic counties are seeing the most robust growth in new listings.
- Suburban towns like Montclair, Morristown, and Maplewood continue to attract buyers seeking space, amenities, and access to NYC.
- Jersey City and Newark remain popular with younger professionals and investors, especially as new developments and mixed-use properties come online.
- Smart home features and energy efficiency are increasingly important to buyers, a trend that’s expected to continue as the market evolves.
A Market in Correction, Not Collapse
Despite some headlines warning of a possible downturn, the reality is that North Jersey’s real estate market is not crashing—it’s correcting. Prices are still rising, albeit at a slower pace, and the market is becoming more balanced. Buyers have more choices, but they need to be decisive. Sellers can still command strong prices, but must be realistic and strategic.
“The bottom line is that the market’s not crashing. It’s just correcting. It’s still very active, but you’ve got to be smart, prepared, and realistic. The sky is not falling! It’s just not as on fire as it was a couple years ago. And that’s not a bad thing.”
Key Takeaways for Buyers and Sellers
- For buyers: The window of opportunity is open, but don’t expect bargains. Be ready to move quickly if you find a home that fits most of your needs and budget.
- For sellers: It’s still a good time to sell, especially if your home is priced right and shows well. Overpricing is risky in today’s market.
- For investors: North Jersey remains one of the hottest real estate markets in the country, with strong demand and solid long-term prospects.
As we move into the second half of 2025, North Jersey real estate is proving resilient and dynamic—offering both challenges and opportunities for everyone in the market.
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