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Welcome to the Northern New Jersey real estate market update! I’m Stacy Esser with the Stacy Esser Group, and I’m passionate about educating homeowners, buyers, and sellers in our vibrant market. As we look ahead, 2025 is shaping up to be a pivotal year for real estate in Northern New Jersey, and I’m here to break down the trends and predictions that you need to know.
While national real estate markets are grappling with higher mortgage rates, slowing price growth, and increasing inventory, Northern New Jersey is bucking these trends. Instead of following the national narrative, our local market is thriving, creating both opportunities and challenges for buyers and sellers alike.
In 2023, mortgage rates peaked at 8%, causing significant affordability issues. After a brief dip to around 6% in late 2024, rates surged back into the 7% range, leaving many potential buyers on the sidelines. Nationally, home price appreciation has slowed to 2-4%, with inventory levels still below pre-pandemic figures. However, Northern New Jersey stands out with home values rising by an impressive 8.6% in 2024, significantly outpacing the national average.
In Bergen and Passaic Counties, the real estate landscape is competitive. The median sales price in these areas has increased dramatically, with Passaic County homes appreciating about 9%. The months of inventory remain critically low, hovering below two months, which is far from the five to six months considered a balanced market. This scarcity of available homes has led to quicker sales and a frustrating experience for both buyers and sellers.
It’s important to note that a significant portion of home sellers are also buyers, further complicating the market dynamics. Many homeowners are hesitant to sell their properties due to the "lock-in effect," where approximately 57% of homeowners hold mortgages with rates below 4%. This reluctance to move is contributing to the limited inventory and heightened competition among buyers.
As we approach 2025, it’s crucial for buyers to understand the cost of waiting in this competitive market. With home prices having risen nearly 36% since 2020, it may be wise to act sooner rather than later. I recommend seeking out properties that may need some work but are located in desirable areas. This strategy can potentially yield significant returns as the market continues to evolve.
For sellers, it’s essential to be strategic in this market. Homes that are well-maintained and updated are more likely to attract buyers. Making your property feel move-in ready will set it apart from others on the market, which may require more work.
Looking ahead, the key metric to watch in 2025 is inventory levels. If the months of supply rise above three to four months, we may begin to see slower price growth, similar to national trends. However, I predict that Northern New Jersey will continue to see appreciation between 5% and 8%, especially for properties that are well-prepared and marketed effectively.
If interest rates stabilize around 6%, it could trigger a surge of activity in the market, allowing more homeowners to sell and more buyers to enter the fray. This pent-up demand has the potential to increase inventory levels and drive prices higher.
Navigating the Northern New Jersey real estate market requires a keen understanding of local trends and conditions. I encourage you to download my comprehensive guidebook for more detailed insights into the market.
Thank you for spending time with me today to learn about the Northern New Jersey real estate landscape. If you found this information helpful, please like, subscribe, and share it with anyone who might benefit. I look forward to seeing you soon!
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Buyers Locked Out of Market
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Bergen County, NJ
Bergen County, New Jersey, has a population of 953,243 and is considered one of the best places to live in the state. Most residents own their homes, and the area offers many bars, restaurants, coffee shops, and parks. It attracts young professionals, with residents generally leaning liberal. The public schools in Bergen County are highly rated.
Tenafly, NJ
Tenafly, a suburb of New York City in Bergen County with a population of 15,299, is one of the best places to live in New Jersey. Most residents own their homes and enjoy a suburban feel with numerous restaurants, coffee shops, and parks. The town attracts families, and residents generally hold moderate political views. Tenafly’s public schools are highly rated.
Oradell, NJ
Oradell, a New York City suburb in Bergen County with a population of 8,208, is considered one of the best places to live in New Jersey. Residents enjoy a suburban feel, with most owning their homes. The town has plenty of coffee shops and parks and is popular among retirees. Oradell residents generally lean conservative, and the public schools are highly rated.
Hawthorne, NJ
Hawthorne, a suburb of New York City in Passaic County with a population of 19,456, offers a dense suburban feel with many restaurants, coffee shops, and parks. It attracts families and young professionals, with residents generally leaning liberal. The public schools are rated above average.
Demarest, NJ
Demarest, a New York City suburb in Bergen County with a population of 4,930, is considered one of the best places to live in New Jersey. It has a rural atmosphere, with most residents owning their homes. The community generally holds moderate political views, and the public schools are highly rated.
Closter, NJ
Closter, a New York City suburb in Bergen County with a population of 8,555, is highly rated as a place to live in New Jersey. It provides a rural feel, and most residents own their homes. The community tends toward moderate political views, and the public schools are highly rated.
Montvale, NJ
Montvale, a New York City suburb in Bergen County with a population of 8,413, is known as one of New Jersey’s top places to live. It offers a sparse suburban atmosphere, with most residents owning their homes. The area attracts many young professionals, and the community generally leans conservative. Montvale’s public schools are highly rated.
Upper Saddle River, NJ
Upper Saddle River, a New York City suburb in Bergen County with a population of 8,313, is highly rated as a place to live in New Jersey. It offers a rural feel, with most residents owning their homes and enjoying the town’s numerous parks. Residents tend to hold moderate political views, and the public schools are highly rated.
Woodcliff Lake, NJ
Woodcliff Lake, a New York City suburb in Bergen County with a population of 6,096, is highly regarded as a place to live in New Jersey. It provides a sparse suburban feel, with most residents owning their homes and enjoying many coffee shops and parks. The community leans conservative, and the public schools are highly rated.
Welcome to the Northern New Jersey real estate market update! I’m Stacy Esser with the Stacy Esser Group, and I’m passionate about educating homeowners, buyers, and sellers in our vibrant market. As we look ahead, 2025 is shaping up to be a pivotal year for real estate in Northern New Jersey, and I’m here to break down the trends and predictions that you need to know.
While national real estate markets are grappling with higher mortgage rates, slowing price growth, and increasing inventory, Northern New Jersey is bucking these trends. Instead of following the national narrative, our local market is thriving, creating both opportunities and challenges for buyers and sellers alike.
In 2023, mortgage rates peaked at 8%, causing significant affordability issues. After a brief dip to around 6% in late 2024, rates surged back into the 7% range, leaving many potential buyers on the sidelines. Nationally, home price appreciation has slowed to 2-4%, with inventory levels still below pre-pandemic figures. However, Northern New Jersey stands out with home values rising by an impressive 8.6% in 2024, significantly outpacing the national average.
In Bergen and Passaic Counties, the real estate landscape is competitive. The median sales price in these areas has increased dramatically, with Passaic County homes appreciating about 9%. The months of inventory remain critically low, hovering below two months, which is far from the five to six months considered a balanced market. This scarcity of available homes has led to quicker sales and a frustrating experience for both buyers and sellers.
It’s important to note that a significant portion of home sellers are also buyers, further complicating the market dynamics. Many homeowners are hesitant to sell their properties due to the "lock-in effect," where approximately 57% of homeowners hold mortgages with rates below 4%. This reluctance to move is contributing to the limited inventory and heightened competition among buyers.
As we approach 2025, it’s crucial for buyers to understand the cost of waiting in this competitive market. With home prices having risen nearly 36% since 2020, it may be wise to act sooner rather than later. I recommend seeking out properties that may need some work but are located in desirable areas. This strategy can potentially yield significant returns as the market continues to evolve.
For sellers, it’s essential to be strategic in this market. Homes that are well-maintained and updated are more likely to attract buyers. Making your property feel move-in ready will set it apart from others on the market, which may require more work.
Looking ahead, the key metric to watch in 2025 is inventory levels. If the months of supply rise above three to four months, we may begin to see slower price growth, similar to national trends. However, I predict that Northern New Jersey will continue to see appreciation between 5% and 8%, especially for properties that are well-prepared and marketed effectively.
If interest rates stabilize around 6%, it could trigger a surge of activity in the market, allowing more homeowners to sell and more buyers to enter the fray. This pent-up demand has the potential to increase inventory levels and drive prices higher.
Navigating the Northern New Jersey real estate market requires a keen understanding of local trends and conditions. I encourage you to download my comprehensive guidebook for more detailed insights into the market.
Thank you for spending time with me today to learn about the Northern New Jersey real estate landscape. If you found this information helpful, please like, subscribe, and share it with anyone who might benefit. I look forward to seeing you soon!