Northern New Jersey Real Estate Market Update: Key Trends and Insights So Far This Year

As I analyze the real estate market trends across Northern New Jersey, covering Bergen, Essex, Passaic, Morris, and Hudson Counties, a few interesting patterns emerged this week that might signal a changing market. While some counties maintain their typical market trends, low inventory and rising sale prices year over year (YOY), two are showing a shift in median sale price I haven’t seen in three years, and one is still struggling significantly with inventory.

 

Bergen and Essex Counties have been performing as expected, reflecting the trends they have maintained over the past year. Inventory levels remain tight, yet Essex County is seeing a comparable number of new listings as this time last year but still higher prices.

 

• Essex County: Median sale prices have increased by 14%, reaching $624,000. The demand remains strong, and properties continue to move quickly.

• Bergen County: The median sale price remains over $700,000, with 86 days on market on average. This county has generally maintained the highest median sale price of all others in Northern NJ. The homes here also tend to have longer days on market. The data indicates that most properties hit the market overpriced in the beginning.

Passaic County is experiencing a significant drop in new listings, with a 22% decrase compared to this time last year. As of March, the available inventory remains significantly lower than in 2022 and 2023.

 

• Despite the sharp drop in inventory, median sale prices have still increased year-over-year.

• Pending sales are down 15% compared to 2023, largely due to the lack of inventory.

• One notable change is that at the beginning of 2025, the median sale price in Passaic County was up 20-22% year-over-year. However, recent data shows a drop to $536,000, which is approximately an $85,000 drop.

Since Spring of 2023, there has not been a year-over-year decline in the median sale price in any Northern NJ until this year.

 

• Morris County: New listings have dropped 16%, and the median sale price has fallen 2%, now at $612,000. Home sales were up as much as 10% this year, at $650,000

• Hudson County: Although Hudson County saw a brief -1% drop in median sale price mid-January, they just experiencing a 3% decline in median sale price, now at $658,000. Hudson tends to be the most unpredictable county in Northern NJ.

Home prices in these counties have remained strong post-pandemic, even amid high interest rates. It will be interesting to watch how the market responds to these changes, or if, without looking at the data, most people would even notice the price drop. As of right now, home after home sells regardless of the view from many who believe these are unrealistic numbers.

 

With interest rates slowly declining—almost daily over the past week—the question remains: Will this be the catalyst to boosting inventory? In my opinion, just like the stock market or bitcoin, if prices continue to drop and potential sellers take notice, we could see an increase in new listings as these homeowners begin to think they’re “losing” money. Historically, spring has been one of the busiest seasons in real estate, and with these changes, we could be heading for a surge in activity from both sellers and buyers. The next few weeks leading into the spring season will be telling, and when the new inventory comes, I don’t think it will come in slowly.

 

Northern New Jersey’s real estate market remains strong, even with these drastic fluctuations in certain areas. Comparing our market here to the rest of the country would not accurately tell the story of what is happening. You need to keep up to date with what’s happening in your neighborhood and the surrounding area.

 

As the spring market unfolds, keep an eye on inventory levels and interest rate trends as they are key to understanding where the market is headed next.