In 2024, affordability took a hit in the New Jersey housing market, with rising home prices and high mortgage rates. Will 2025 bring some relief? Stick around to find out, as I share my data-driven predictions for home price growth in Hunterdon and Somerset Counties.
Key Takeaways:
2024 Recap: High demand and limited inventory drove home prices up, making affordability a challenge.
Will Prices Drop in 2025? Experts predict a slower pace of price growth, with some potential for a decline if more homes come on the market.
Affordability Factors: Mortgage rates could play a significant role, with lower rates potentially boosting affordability.
My Prediction: I'll share my forecast for home price growth/decline in Hunterdon and Somerset Counties, giving you a range to prepare for.
Don't miss this video to learn more about: -New Jersey housing market trends -Factors influencing home prices -Expert insights and predictions -Tips for buyers and sellers
Hello, my name is Mary Malone of Coldwell Banker and the Lux Service Group.
Let's chat about 2024, the year in review for the New Jersey housing market.
And I'd also like to predict what I think may be happening in 2025.
Of course, I don't have the crystal ball, but I do have almost 20 years
of experience and expertise,
and I can give you my two cents of what I see going on in New Jersey.
So the two counties I'm going to focus on are both Hunterdon and Somerset counties.
As a professional, Somerset County's housing prices are higher
because of the location closer to the city.
There's also a lot more public transportation in Somerset County
within the county and also to the city in New York as well.
Hunterdon County is a little bit further out, a bit more bang for your buck.
And we do get quite a bit of buyers
looking for more suburban life out in Hunterdon County.
We do have public transportation, just not as much as Somerset County.
Even though we have higher interest rates,
the fact that there's low inventory still makes us an extremely great seller's market.
So I don't see much changing in 2025.
Let's take a look at the difference from 2023 and 2024,
and let's discuss how the market may change in 2025.
Let's take a look at the local market update for November 2024.
If you're comparing 2023 to 2024 in Hunterdon County,
the average sales price went from 567 to 670, a whopping 18.2 percent.
And check out what homeowners were getting.
From list price to sales price, 100.3 percent from 2023 to 102.6 percent in 2024.
The entire year from 2023 to 2024 went up 14.8 percent.
Sellers were averaging 0.3 percent more from list price to sales price.
In Somerset County, November 2023, the average sales price was 660.
In 2024, 735, up 11.4 percent.
And check out the list price to sales price.
103.1 percent is what sellers were receiving in list to sales price.
The year to date from 2023 to 2024 was 660 to 751, up 13.8 percent.
So sellers were getting 1 percent more over list price than they were in 2023.
Taking into consideration the difference in housing prices from 2023 to 2024,
and on a national level, this is what real estate entities are predicting for 2025.
Most major real estate organizations feel that the housing prices will still continue to grow.
If you're wondering how it's even possible prices are still rising, here's your answer.
It all comes down to supply and demand.
With the low supply of housing, we will still have a high buyer demand.
Hence the reason why I feel our prices will increase.
They may not increase 20 percent in a year, but I still see an increase until we have more inventory.
Hunterdon and Somerset County housing markets definitely demonstrated resilience and growth in 2024.
And I don't see much changing in 2025 because of the low inventory.
Even though we have higher interest rates, people will always need to buy homes.
Will 2025 increase 15 percent?
I don't know, but the market experts still see a moderate increase over the year.
If you're looking to buy in 2025, let's talk strategy and off market properties.
If you're looking to sell in 2025, let's talk about the best time to put your house in the market.
And whether you want to buy or sell this year, two years down the road, five or ten years down the road,
let me help you come up with a game plan.
Don't forget to follow us on YouTube, subscribe to our channel and give us a ring anytime.
Thanks so much for checking in today.
