As we head into the new year, Central New Jersey’s housing market is still defined by limited inventory, steady demand, and price resilience—but buyers are starting to see a little more breathing room than they did in the frenzy years. The big headline: rates have eased compared to last year, and that’s bringing more buyers off the sidelines. Freddie Mac+1

Below is a practical, local look at what’s happening—and why both buying and selling can make sense right now.

The “30,000-foot view” of Central NJ right now

Inventory is tight (still), but moving in a healthier direction

In many Central NJ towns and neighborhoods, the story remains the same: not enough homes for the number of people who want them. That supports values and keeps well-priced homes moving.

For example, in Somerset County (Nov 2025):

• Single-family median sale price: $772,500 (up 5.0% year-over-year) Market Stats Reports

• Inventory: 303 homes (up 10.2%) Market Stats Reports

• Months of supply: 1.7 months (still very low) Market Stats Reports

• Average % of list price received: 101.3% (homes still often sell at/above asking when positioned correctly) Market Stats Reports

And across North Central NJ overall, the single-family median sales price was $650,000 in November 2025 (up 3.8%). NCJAR

Bottom line: It’s not a “soft” market—but it’s also not 2021-level chaos. Homes that are priced well and presented well are selling. Homes that aren’t… sit.

Mortgage rates right now (and what they mean for you)

Mortgage rates move daily, but the most widely cited benchmark (Freddie Mac’s weekly survey) shows:

• 30-year fixed: 6.18% (as of Dec 24, 2025) Freddie Mac

• 15-year fixed: 5.50% (as of Dec 24, 2025) Freddie Mac

Even small dips matter. A shift of 0.25% can change purchasing power meaningfully—especially in Central NJ price points.

What I’m seeing locally: More buyers are negotiating seller credits, temporary rate buydowns, or using lender programs to improve the monthly payment—because sellers who want top dollar are also motivated to keep the buyer pool as wide as possible.

(Friendly reminder: your exact rate depends on credit score, down payment, loan type, points, and lender pricing.)

Why buying can still be a smart move right now

1) You may have more negotiating power than you think

Inventory is still low, but it’s not as razor-thin as it was in many micro-markets. In Somerset County, inventory was up year-over-year in November. Market Stats Reports
That can translate into:

• more opportunities to avoid “must-win” bidding wars

• stronger inspection and appraisal strategies

• more room to request credits (especially when a home needs updates)

2) Competition is more “selective”

Great homes in great locations still get attention fast. But homes that are overpriced or not updated tend to sit longer—creating openings for buyers who can be patient and strategic.

3) You can refinance later (but you can’t “refinance” the purchase price)

If rates fall in the future, refinancing is an option. What you can’t change later is the price you paid—or missing the right home in the right neighborhood.

Why selling can be a smart move right now

1) Prices are holding up—and in many areas, rising

Somerset County’s single-family median sale price was up 5.0% year-over-year in November. Market Stats Reports
That’s meaningful equity for owners who bought pre-2020, and still strong for many who bought after.

2) Serious buyers are out there (and they’re prepared)

As rates stabilized in the low-6% range, more buyers returned to the market this fall. Freddie Mac+1
Well-presented listings continue to attract strong activity—especially in the “move-in ready” category.

3) Low supply can work in your favor

A market with ~1–2 months of supply is still, by definition, a seller-leaning environment. (Somerset County was 1.7 months in Nov 2025.) Market Stats Reports

The key is positioning: Today’s buyers are value-conscious. Proper pricing, great photos, and thoughtful prep aren’t “nice-to-haves”—they’re what separate the winners from the listings that linger.

What I’d recommend if you’re considering a move in Central NJ

If you’re buying:

• Get fully pre-approved (not just pre-qualified)

• Target homes that are slightly less “perfect” (paint, floors, cosmetics) for better leverage

• Ask about credits/buydowns when it helps affordability

• Have a local strategy for each town—because Central NJ is not one single market

If you’re selling:

• Price for today’s market, not last spring’s headlines

• Focus on presentation: declutter, light staging, small repairs, curb appeal

• Expect buyers to be more inspection-aware (and plan accordingly)

• Consider offering a credit/buydown if it expands your buyer pool