As the national housing market cools off, the question on many New Jersey homeowners’ and investors’ minds is: Are we next? According to recent data from ICE Mortgage Technology, nearly one-third of the 100 largest U.S. housing markets are now seeing annual price declines. Inventory is rising, demand is softening, and prices are starting to slip in many Sunbelt and West Coast markets.
But here in the Northeast, particularly Bergen County, home prices continue to climb. In fact, the median sale price for residential homes in Bergen County hit $877,000 in June 2025 ⬆️, up from $788,500 in August 2024. According to the New Jersey Multiple Listing Service (NJMLS), prices have remained strong even while units sold have slowed.
A Tale of Two Markets: National vs. Northeast 🏙️ vs. 🌆
Nationally, housing inventory is up 29% year-over-year as of June, with homes sitting longer and price growth slowing. According to ICE, home price appreciation in June slowed to 1.3%, the lowest in two years. Condos in particular saw 1.4% price declines on average nationwide.
In contrast, Bergen County has seen:
- A 10% increase in residential median sale price from August 2024 ($788,500) to June 2025 ($877,000)
- Strong close-to-list ratios, with sellers receiving 103.9% of list price on average in May and June 2025 💰
- Median Days on Market (DOM) holding steady between 14 and 16 days 🗓️
- A consistent stream of 700+ new residential listings per month from April to June 📋
Buyers are still paying top dollar for desirable homes. But signs of a shift beneath the surface are emerging. ⚠️
Warning Signs in the Data 🚨
Despite strong prices, units sold have dropped compared to earlier in the year:
- May 2025: 410 residential units sold
- June 2025: 500 units
- July 2025 (partial month): Only 174 recorded sales so far
This drop in volume could reflect buyer fatigue, affordability strain, or a delayed reaction to interest rate pressures.
At the same time, foreclosure filings are climbing. The Bergen County Sheriff’s foreclosure docket shows 107 properties scheduled for auction between July and early September 2025. Many of these are multi-family homes, investment condos, and older SFRs, suggesting growing distress at the margins of the market. 🏚️🔨
Spotlight on Condos: Is Softness Already Starting? 🏢
While residential single-family prices are holding firm, condo data shows more volatility:
According to NJMLS condo data for Bergen County:
- Median condo sale price rose from $520,000 in August 2024 to $552,500 in June 2025, then declined to $505,000 in July 2025 📉
- Condo Days on Market peaked at 37 days in February 2025 and has since dropped to 18 days in July ⏳
- Sale-to-list ratios have remained very stable at 100% or higher throughout the past 12 months
New listings for condos increased notably in May and June but dropped to 135 in July, suggesting a possible seasonal cooldown or seller hesitation. 😬
Multifamily Momentum: 2–4 Family Homes Are Heating Up 🔥🏠
An overlooked segment of the market, 2–4 family homes, has shown surprising strength:
According to NJMLS:
- Median sale price increased from $710,500 in August 2024 to $840,000 in July 2025 💵
- Median Days on Market fell to just 16 days in July
- Sale prices are consistently tracking close to or above original list price
- New listings peaked at 99 in May but dropped to just 28 in July, a sharp contraction in seller activity 📉
Investor interest remains high, likely fueled by continued rental demand and limited housing supply. However, affordability constraints could pressure rents and cap rates heading into Q4. 🧮
What’s Fueling NJ’s Resilience? 💪🏽
- Tight inventory of updated homes: While new listings are up, truly turnkey properties remain rare 🏡✨
- Strong local employment and commuter demand: Proximity to NYC continues to support demand in towns like Ridgewood, Tenafly, and Glen Rock 🚉
- Aging Baby Boomer owners who aren’t moving: Many long-time homeowners are choosing to age in place, keeping inventory low 👵🏼👴🏽
But these factors may not be enough to counteract national headwinds forever 🌬️
Could We See Price Declines in North Jersey? 👀
Yes, especially in certain segments:
- Investor-heavy condo markets like Hackensack, Fort Lee, and Cliffside Park may soften first 🏙️
- Homes in need of work or with outdated systems may linger on the market longer 🔧
- Higher-end homes ($1.5M+) that surged during COVID may see demand taper as luxury buyers become more rate-sensitive, especially with the new NJ luxury tax for sellers that went into effect on July 10, 2025 💸🏷️
The wildcard? Rates. With whispers of Jerome Powell stepping down and the White House pressuring the Fed to lower interest rates, a shift could come quickly. But if rates stay in the 6.5%+ range, buyer activity may continue to cool through the fall 🍂
Final Thoughts: Stay Alert, Not Alarmed 🧠
New Jersey isn’t Florida or Austin, but no market is immune forever. The smart move now is to monitor your local data, watch early indicators like DOM, price reductions, and auction activity, and avoid assuming today’s price strength guarantees tomorrow’s results. 📊
If you’re a homeowner sitting on the fence, this may be the moment to evaluate your goals. At NJ House Partners, we help sellers weigh their options — whether that means listing traditionally, selling for cash, or preparing a property for maximum ROI. 🏠📈
Want a local, data-backed opinion on your home’s value or market timing?
📲 Contact Kevin Hill at NJ House Partners for a no-pressure consultation tailored to your unique situation.
Sources:
- ICE Mortgage Technology, July 2025 Housing Report
- New Jersey Multiple Listing Service (NJMLS), Residential, Condo, and 2–4 Family Sales Data, August 2024 – July 2025
- Bergen County Sheriff Foreclosure Docket, July–Sept 2025