Despite the recent Zillow forecast that home prices will start to decline,[1] and the 2025 homebuying trends forecasted[2], our local housing market continues its upward climb.
During the first quarter of this year, 131 homes sold for an average price of $933,044. These homes sold for 103% of the average list price of $899,074. These homes took an average of 41 days on the market before contract acceptance.[3]
The second quarter of 2025 experienced an even more robust market. During this period, 362 homes sold for an average price of $1,029,609, which was 104% over the average list price. These homes went under contract in only 21 days.[4] Although housing inventory almost tripled in the second quarter, sale prices increased nearly 13% over the first quarter sale prices and sold in half the time. That is good news. Buyer demand continues despite mortgage interest rates remaining steady at close to 7%.[5]
Buyers continue to seek homes in our market because of their proximity to top-ranked public school districts and private schools, such as Berkeley Heights, New Providence, Warren, Watchung Hills, and Pingry.[6] In addition, based on job opportunities, cost of living, housing, and local amenities, Somerset and Morris Counties received A+ ratings and Union County received an A- rating.[7]
Two recent developments in our state have shifted buyers’ focus to specific home features. Beginning June 1, New Jersey electricity rates have increased by up to 20%[8]. If you are selling your home, consider an emphasis on energy-saving features such as SMART thermostats, Energy Star appliances, additional insulation, etc. Recent increases in storms and flooding, as well as future flood projections[9], have buyers focusing on home features to protect and prevent damage from storms and flooding. Properties with trees trimmed away from the home and sound drainage systems, as well as sump pumps, back-up batteries, and home generators, are sought by buyers, offering a strong return on investment for home sellers.
As a result of the New Jersey Real Estate Consumer Protection Enhancement Act, signed into law on July 10, 2024, all home sellers must provide buyers with a property condition disclosure form. This form is a great tool to highlight home improvements you have made to conserve energy and protect your property from storms and flooding. This information will give buyers greater confidence in deciding to purchase your home.
So you can disregard those national housing forecasts! Contact your local Realtorâ for an accurate forecast and more advice on preparing to sell your home, at dianebelcuore@optonline.net, 908-872-5473.
For additional information please contact:
Diane Belcuore
Realtor ®
908-872-5473
dianebelcuore@optonline.net
NJ 5 STAR AWARD Winner 2014, 2015, 2016, 2017, 2018,2019,2020,2021
Accredited Staging Professional
