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New Jersey Real Estate Updates: Gearing Up for the New Year! - 1/3/25

Writer's picture: Alex PreziosiAlex Preziosi


New Jersey Real Estate Market Update – December 2024


As we conclude 2024, the New Jersey real estate market exhibits notable trends that both buyers and sellers should consider.


Mortgage Rates and Affordability

December 2024 has seen a slight decline in mortgage rates, with 30-year fixed rates averaging around 6.69%. Projections suggest a further decrease to approximately 6.34% by the end of 2025, potentially enhancing affordability for buyers.


Inventory Levels

The market continues to experience tight inventory, with only a modest increase in available homes. In November 2024, there were 25,865 homes for sale in New Jersey, marking a 5.1% year-over-year rise.


Redfin - Source

Home Prices

Home prices in New Jersey have risen significantly. In January 2024, the median home sale price was approximately $494,900, reflecting a 16.1% increase from $426,400 in January 2023.


Houzeo- Source

Market Activity

Despite high prices, the number of homes sold has declined. In January 2024, 5,317 homes were sold, a 7.5% decrease from 5,750 in January 2023. This trend indicates that while demand remains strong, limited inventory and affordability challenges may be tempering sales volume.


Area Highlights

  • Hoboken: This area continues to attract young professionals and families due to its proximity to Manhattan and vibrant community. The real estate market here is highly competitive, with properties selling quickly and at premium prices.

  • Cape May County: Emerging as a top destination for luxury vacation homes, Cape May County has seen a significant rise in popularity, offering a mix of family-friendly activities and cultural experiences. Check out Cape May for their Christmas lights & events until January 5th!


Looking Ahead

Experts predict that while inventory may remain tight, price growth is expected to moderate in 2025. Buyers may find increased opportunities as mortgage rates continue to ease, while sellers can anticipate sustained demand for properties in desirable locations.

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