New Jersey's housing market just delivered some eye-opening numbers. Home prices jumped 4.2% year-over-year in November 2025, hitting a median of $560,700 statewide. But here's the twist – the market's showing signs of cooling at the same time.

You're probably wondering: Are we at the peak, or is there more room to climb?

Let's break down what's actually happening in your backyard.

The Current Market Snapshot

The numbers tell an interesting story. While prices are up, home sales dropped 5.7% compared to last year. Only 6,570 homes sold in November versus 6,969 the year before. That's not the kind of frenzied buying we saw in 2021-2022.

Here's what's changed:

✓ Inventory is up 7.5% with 28,362 homes available
✓ Days on market increased to 48 days (up from 38)
✓ Only 44.4% of homes sold above asking price (down 6.6 points)
✓ 17.1% of sellers had to drop their prices

Translation? Buyers have more choices and more time to decide. Sellers can't just slap any price tag and expect multiple offers.

Bergen, Hudson, Passaic, and Essex Counties: The Real Story

These four counties drive much of North Jersey's market activity, and each one's behaving differently right now.

Bergen County remains the premium market, with towns like Franklin Lakes and Woodcliff Lake still commanding top dollar. Luxury homes are taking longer to sell, but quality properties in desirable school districts aren't sitting long.

Hudson County continues benefiting from NYC proximity. Jersey City and Hoboken condos are seeing steady demand, though first-time buyers are getting priced out of many neighborhoods.

Essex County shows the most variation. West Orange and Millburn maintain strength, while other areas face more price sensitivity from buyers.

Passaic County offers relative affordability compared to its neighbors. Wyckoff and Westwood provide good value for families seeking Bergen County amenities without the premium price tag.

Are We Really at a Peak?

Short answer: Probably not.

Here's why this doesn't look like a classic market peak:

Peak markets typically show:

• Rapid, unsustainable price increases (20%+ annually)
• Extreme buyer frenzy with cash offers standard
• New construction can't keep up with demand
• Everyone thinks prices only go up

What we're seeing instead:

• Moderate price growth (4.2% is healthy, not explosive)
• Normalizing buyer behavior
• Reasonable inventory levels
• More balanced negotiations

The current environment looks more like a "plateau" than a peak. Prices are still climbing, but the pace is sustainable.

Smart Moves for Buyers Right Now

You've got more negotiating power than you've had in years. Here's how to use it:

Time Your Search Better
Don't rush. With 48 days average market time, you can actually think through decisions instead of making snap judgments.

Focus on Value, Not Just Price
A $600,000 house that needs no work beats a $550,000 fixer-upper in today's repair-cost environment.

Get Pre-Approved (Seriously)
You're not competing against 15 other offers anymore, but sellers still want proof you can close.

Consider Lesser-Known Towns
Allendale and Wood Ridge offer great value compared to their famous neighbors.

Budget for Higher Rates
Factor in current mortgage rates when calculating affordability. Don't assume rates will drop significantly soon.

Strategic Advice for Sellers

The easy money days are over, but good homes still sell. You just need to be smarter about it.

Price It Right From Day One
With 17.1% of sellers reducing prices, overpricing backfires quickly. Price aggressively to start.

Timing Still Matters
Spring remains the best selling season. But don't wait if you need to sell – inventory will likely increase by then.

Make It Show-Ready
Buyers have time to be picky now. Fresh paint, clean spaces, and proper staging aren't optional anymore.

Be Flexible on Terms
Consider buyer requests for repairs or closing cost assistance. The days of "take it or leave it" are done.

Market Aggressively
Professional photos and online presence matter more when buyers have choices.

What Makes New Jersey's Market Different

New Jersey's housing market operates under unique pressures that other states don't face:

Property Tax Reality
We have some of the highest property taxes in the nation. This creates a ceiling effect – buyers calculate total monthly payments, not just mortgage payments.

NYC Commuter Premium
Proximity to Manhattan still commands premium pricing, but remote work flexibility has reduced some of this premium.

Limited Land Supply
We're densely populated with limited developable land. This fundamental supply constraint supports long-term price stability.

Strong Local Economies
Pharmaceutical, finance, and tech sectors provide high-paying jobs that support housing demand.

School District Influence
Good school districts like those in Hackensack and surrounding areas create micro-markets with their own pricing dynamics.

Regional Variations Tell the Full Story

The statewide numbers don't capture local variations. Trenton saw 9.9% price increases, while other metros grew more modestly. The New York-Newark-Jersey City region posted 8.1% gains in Q3 but only 3.0% in November.

This variation suggests different local factors at play:

• Job market strength
• New construction activity
• Local government policies
• School quality changes
• Infrastructure improvements

The Next 6-12 Months

Based on current trends, expect:

Continued moderate price growth (3-6% annually)
Stable inventory levels with seasonal fluctuations
More balanced negotiations between buyers and sellers
Regional variations to persist based on local factors

Making Your Move in This Market

Whether you're buying or selling, success comes from understanding current conditions rather than fighting them.

For buyers: You have time to be selective. Use it wisely.

For sellers: Price competitively and be prepared to negotiate.

For investors: Focus on cash flow positive properties in stable neighborhoods.

The record prices grab headlines, but the underlying market fundamentals suggest stability rather than speculation. We're not in a bubble – we're in a mature market finding its footing after years of unusual conditions.

Your next move depends on your personal situation, not market timing. Good properties in desirable locations will always find buyers, and motivated buyers will always find something suitable.

The key is approaching this market with realistic expectations and solid preparation, whether you're looking to buy or sell in today's New Jersey market.