The New Jersey housing market is showing signs of transition. While sellers in select towns are still enjoying strong prices and low inventory, others are beginning to feel the pinch. With the national economy sending mixed signals and whispers of a possible recession growing louder, homeowners in North Jersey should take a closer look at where their town stands and what it means for their equity.
📉 Are Recession Clouds Gathering Over NJ Real Estate?
There are several indicators in the May 2025 data suggesting a cooling market:
- Pending sales in Bergen County dropped 18.2% year-over-year.
- Closed sales in Passaic County are down 10.7%, despite only a minor increase in new listings.
- Days on market are rising in many areas, with some towns seeing homes sit 40+ days compared to just 20–25 last spring.
- Mortgage rates remain volatile, hovering around 7%, and wage growth isn’t keeping up with inflation. Consumer confidence is dipping, and home affordability is at a decade low.
These factors combined point to caution ahead. While we are not in a full-blown recession, many buyers are pulling back—waiting for rates or prices to drop before jumping in.
🏆 Top Performing Towns in Bergen County (May 2025)
Despite the overall slowdown, some towns are bucking the trend:
- Paramus: Median sales price up 12.1% year-over-year. Inventory remains tight, and schools/shopping continue to drive demand.
- Haworth: Saw one of the lowest days-on-market numbers (just 15), suggesting strong buyer interest in small, high-end communities.
- Fort Lee: Steady sales due to high-rise condo demand and proximity to NYC transit, especially among downsizers and international buyers.
Why? These towns offer a mix of value, schools, access to NYC, or lifestyle amenities that continue to attract serious buyers despite high interest rates.
⚠️ Towns Showing Signs of Softening
Some areas may be tipping into a buyer’s market:
- Ridgefield Park: Days on market rose to 45+, with several price reductions noted in active listings.
- Lodi: Median prices fell 4.6% year-over-year. Inventory has ticked up as more sellers list to beat any summer price declines.
- Elmwood Park: Closed sales dropped nearly 30% from May 2024, a sharp contraction despite steady listing activity.
Why the slowdown? These areas may lack the “destination appeal” of other towns or are more sensitive to rate hikes due to the affordability-focused buyer pool. Investors are also more cautious here.
💸 Strategic Advice for Sellers in a Changing Market
If you’re in a high-performing town, you still have a strong window to list and cash out.
If you’re in a softening area or facing financial challenges (job loss, divorce, foreclosure risk), acting sooner could preserve your equity before further slowdowns take hold.
Here’s what to consider:
- Run the Numbers: We’re still in a low inventory market, but that could shift. Don’t assume last year’s price is guaranteed.
- Prep Matters: Homes in top condition are still selling quickly, while “as-is” listings may sit unless priced aggressively.
- Partner with a Hybrid Agent: At NJ House Partners, we offer both full-market listings and cash-offer solutions. If your home needs work or speed matters, we’ll help you explore all options.
⚠️ Final Thoughts
This is not 2008 but it’s not 2021 either.
May’s data suggests we’re entering a more nuanced market, where pricing right and acting strategically matter more than ever. If your town is cooling, don’t wait too long to sell. If your equity is strong, it might be time to tap into it before buyers get even pickier.
📞 Kevin Hill | 201-214-1349
🌐 www.njhousepartners.com
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