The New Jersey housing market in February 2025 presents a complex landscape, characterized by a mix of declining sales figures and rising price metrics. The Median Sales Price for homes in the state stands at $520,600, reflecting a year-over-year decrease of 2.9%. In contrast, the Median List Price has increased by 2.8% to $550,000, indicating a potential gap between seller expectations and buyer willingness.

Price Per Square Foot metrics reveal a notable upward trend. The median Price Per Square Foot has surged by 9.8% to $326, while the Median List Price per square foot has risen by 6.4% to $336. These figures suggest a strong demand for space, even as overall sales numbers decline.

Sales activity has slowed, with 4,831 Homes Sold, marking a 6.6% decrease from the previous year. Pending Sales have also dropped by 10.4% to 6,640, and New Listings are down by 8.4% to 7,293. Inventory levels have decreased by 4.3% to 14,563, yet the Months of Supply have increased by 10% to 3.0 months, indicating a slight easing in market tightness.

The Median Days on Market have increased by 5% to 51 days, suggesting that homes are taking longer to sell. The average sale to list ratio remains robust at 100.7%, though it has slightly decreased by 0.2% year-over-year. The percentage of Homes Sold above list price has declined by 1.8% to 44.8%, reflecting a cooling in competitive bidding.

Price Drops have become more common, with 14.7% of listings experiencing reductions, a 2.5% increase from the previous year. Additionally, 35.1% of homes are going off the market within two weeks, a slight decrease of 0.8% year-over-year, indicating a moderate slowdown in buyer urgency.

Overall, the New Jersey housing market in February 2025 is characterized by rising price metrics amidst declining sales activity, suggesting a market in transition. Buyers and sellers alike may need to adjust their strategies to navigate these evolving conditions effectively.