Residential real estate has been on a roller coaster ride in recent years, with the pandemic causing unprecedented shifts in supply and demand.  “In 2025, the ups and downs may finally be coming to an end,” says Cathy Vick, Sales Associate at ERA Justin Realty, “Housing prices are expected to stabilize, but mortgage rates could go up a little. So the time to buy is now.” Here is a look at expectations for 2025.

Nationwide Trends

• Moderating Prices: “The rapid spike in home prices we saw in recent years is expected to slow down,” says Jennifer Darby Metzger, Broker/Owner at ERA Justin Realty, “They will still appreciate appropriately for sellers, but the increases will be more gradual and sustainable for buyers.”
• Rising Interest Rates: The Federal Reserve is expected to continue raising interest rates, making borrowing more expensive. This will impact affordability and may dampen demand, particularly for first-time homebuyers.
• Inventory Challenges: There are signs of improvement coming for the nationwide housing shortage. Increased construction and the release of some pent-up supply will help alleviate the inventory crunch, but it will take time to catch up with demand.

New Jersey Trends

“Bergen and its surrounding counties in northern New Jersey are known for their proximity to New York City, which is a huge plus like none other,” says Vick, “That gives our area a slightly different dynamic than the rest of the country.” Here is what to expect in 2025:

• Strong Demand: The demand for housing in Northern NJ remains robust, driven by factors such as job growth, a thriving economy, and excellent schools. This strong demand will continue to put upward pressure on prices.
• Limited Supply: The supply of housing in Northern NJ is constrained due to geographical limitations and zoning restrictions. This limited supply, coupled with high demand, will keep the market competitive.
• Price Appreciation: While the pace of price appreciation may slow down compared to recent years, prices in Northern NJ are still expected to rise steadily. This is due to the ongoing supply-demand imbalance and the area’s desirability.

Bottom Line: In 2025, expect moderate increases in both sales prices and mortgage rates. “Buyers should be prepared to act fast. Have your pre-approval letter for a mortgage ready to go,” says Vick. “The market remains favorable for sellers, but do be prepared for selling to take a little longer than it has been the past few years,” adds Metzger.

If you’re looking to buy or sell, Cathy Vick or any of the knowledgeable agents at ERA Justin Realty can help. Give us a call at (201) 939-7500.