First Quarter 2025 NJ Housing Market Update

Hi, my name is Mary Malone of Kobo Banker Realty and the Lux Service Group. I want to give you a market update. We are almost finished with the first quarter and I have the statistics back from February. And I'd like to look from 2023 to 2025 and show you how the market has changed a bit. And I think a lot of it has to do with we're nervous. We're not sure where the economy is going. Are we going into a recession? Are the tariffs going to play a role in the housing economy? Who knows? So let's take a look at our latest stats and then you tell me where you think the housing market is going to go in New Jersey. Taking a look at Hunterdon County in February 2023, the medium sales price was $490,000. In February 2024, the medium sales price housing price for a single family home was $560,000 up 14.3% from 2023 to 2024. List price to sold price. So in 2023, houses were selling at or a little bit below on average for the list price. And then in 2024, most homes are selling a little bit above the list price. The inventory went up from 2023 to 2024, and the month of supply of inventory went up as well from 2023 to 2024. Take a look at the townhouse and condo. There was a significant increase, probably because townhomes and condos were a little bit more affordable than the single family home in Hunterdon County. So we have a 30, a little over 30% increase from 2023 to 2024. And both years showed that sellers were getting on average at or above list price. Looking from last year, 2024 to this year, in February, the medium sales price still went up, but not as large, which is exactly what we believe was going to happen. We still feel as real estate professionals, we will see a rise in sales price, but not as significant, as significant as it's been in the past few years. So from 2024 to 2025, the average sales price in Hunterdon County went from $560,000 to $599,000, an increase of 7%. And by the way, all of this information has been pulled from New Jersey Association of Realtors. And the percent of list price, so still the last couple of years, on average, home sellers were getting at or a little bit above list price. And our inventory has gone down significantly in the last year, from 239 homes on the market in February 2024 to 162. Townhomes, again, are a little bit more affordable, so we do still see an increase, but not as big as last year, 2023 to 2024. A little over 4% in the last year, we've seen an increase in median sales price of townhomes. And again, the average sales price is above at or a little bit above list price. Somerset County is very interesting. In 2023, the average sales price was $525,000. In 2024, the average sales price was $625,000, huge, 20%, almost a 20% increase, sorry, 19.1%. Percent of list price received, so 2023 was 99%, and 2024 is 102% of list price. Inventory went down significantly from 2023 to 2024. Why? Here's my take, is a lot of buyers took advantage of that low interest rate in 2020, 2021, 2022. 2023, there was still an influx of buyers. And then 2024, we're seeing increase and increase of interest rates. And buyers with those low interest rates are holding on to their homes because it just doesn't make sense for them to sell and downsize to a home that's going to be more expensive. Because number one, the price of the home has increased over the years, and number two, the interest rates are higher. This is an interesting look at the townhomes in Somerset County as well. Medium sales price went from $390,000 to $430,000, up 10%. And in the last, from 2023 to 2024, townhome and condominium owners were getting at or above list price. But what is really interesting is taking a look in the last year at Somerset County. From 2024 to 2025, the medium sales price was $625,000 to $624,900. No change in one year, according to NAJAR, New Jersey Association of Realtors. Sellers in Somerset County were still getting at or above ask price. And the number of homes on the market did decrease from 302 to 86, not a 6, 286, excuse me, not a significant decrease, but still a decrease. Townhomes still are increasing in value. Again, they're a bit more affordable than single family homes, just like Hunterdon County. And the inventory of homes have gone up for townhomes. The list to sales price still at or around or above the current ask price. Warren County is a different area for buyers. We have a lower sales, average sales price, but still a significant increase over the years. 2023 in Warren County, $275,000. 2024, $336,000, up 22.2%. You will see in 2023, sellers are getting around list price. In 2024, the average was above list price. Inventory did decrease from 2023 to 2024. And condominiums did jump extremely high from 2023 to 2024, 29%. And you'll notice that most home sellers were getting above ask price for their condo or townhome in Warren County. So let's take a look at the last year in Warren County. Medium sales price went from $336,000 to $412,000, still up 22%. Warren County, to me, is the untouched gem of New Jersey. It does have a lower price range because it is more rural. However, beautiful farmland. I do think if you're looking for an area, Warren County, you should definitely check out, especially because of the price point, did rise from 2024 to 2025, 22.8%. And sellers were still getting at or above list price. And February for 2024 to 2025 townhomes, still a significant increase from $269,000 to $339,000 in just one year. So up 26%. As I have mentioned in our seller seminar, the major entities, real estate entities, do not see that home prices are going to lower in the next year. But I don't foresee that huge increase like we have seen over the past few years after COVID 2021, 22, and 23. I do see anywhere from 5% to 7% this year. In my opinion, that is a good average. If a seller is looking to hold onto their property and thinking about putting it on the market maybe towards the end of the year, it's really going to have to do everything with inventory and then buyer demand. A buyer will always need a house and a seller at some times will always have to sell a house. So even if you don't want to move up and because the market is slowing down, sellers still because of the lack of inventory, you have the upper hand. I have noticed in the past few weeks that those I'm speaking with are definitely worried about the economy and what's going to happen with the tariffs. Are homes going to be more affordable? Comment on my YouTube page, ask questions. I'd love to chat New Jersey housing market and don't forget to follow me on YouTube and subscribe. Thanks so much for joining me today.