Will the New Jersey Housing Market Crash in 2025? Insights from a Real Estate Expert


Are you considering moving or buying a home in New Jersey? As we transition from 2024 into 2025, understanding the housing market's trajectory is crucial. In a recent episode of The New Jersey Living Podcast, Michael Pennisi, a seasoned broker at Coldwell Banker, shared valuable insights and predictions about the New Jersey housing market. This post will summarize key points from the episode and provide guidance for buyers and sellers.


Current State of the New Jersey Housing Market

The year 2024 saw the lowest number of homes sold nationwide in 30 years, reflecting a significant trend. Currently, the New Jersey housing market is grappling with limited inventory and elevated interest rates. Despite these challenges, homes continue to sell due to sustained demand, although the intense bidding wars seen in previous years have subsided. The combination of limited inventory, steady demand, and generational shifts is expected to push prices upward.


Key Highlights

  • 2024 experienced the lowest number of home sales nationwide in 30 years.

  • The market is currently characterized by limited inventory and high interest rates.

  • Homes are still selling due to high demand, but competitive bidding has decreased.

  • Limited inventory, steady demand, and generational changes will likely drive price increases.

Predictions for 2025

Michael Pennisi offered several predictions for the New Jersey housing market in 2025:

Interest Rates

Interest rates are projected to settle between 5%-6%. This could stimulate increased buying activity but might also intensify competition.

Buyer Advantage

Purchasing a home now may be advantageous, as delaying could lead to higher prices and increased competition.

Seller Considerations

Many homeowners with low-interest mortgages may be reluctant to sell. Those who do should consider cost-effective upgrades to maximize returns.

New Construction Trends

New builds are primarily focused on luxury rentals rather than affordable single-family homes, further tightening inventory.

Demographic Impact

Millennials, now in their prime home-buying years, will drive demand. Additionally, Baby Boomer properties will gradually enter the market due to aging demographics.

Advice for Buyers, Sellers, and General Public


Buyers

Consider purchasing now to lock in prices before competition potentially increases.

Sellers

Evaluate market timing, as improving conditions may favor selling sooner rather than later.

General

Rising rents and limited supply highlight the benefits of homeownership.

Actionable Advice

  • Buyers: Consider purchasing now to lock in prices before competition increases.

  • Sellers: Evaluate market timing, as improving conditions may favor selling soon.

  • General: Rising rents and limited supply underscore the benefits of homeownership.

For a more in-depth discussion, watch the full episode of The New Jersey Living Podcast. If you're interested in housing market updates, neighborhood tours, or buying or selling in the New Jersey real estate market, please reach out.

Watch the full episode of The New Jersey Living Group Youtube Channel for more detailed insights into the New Jersey Housing Market trends.