The New Jersey housing market in January 2025 presents a complex landscape characterized by both growth and challenges. The Median Sales Price has reached $538,300, marking a modest year-over-year increase of 0.9%. This indicates a relatively stable pricing environment, although the growth rate is somewhat subdued compared to the more robust increase in the Median List Price, which has risen by 7.7% to $537,400. This disparity suggests that sellers are optimistic about market conditions, potentially anticipating higher demand.

In terms of Price Per Square Foot, the Median Sales Price per square foot has increased by 9.8% to $325, while the Median List Price per square foot has risen by 8.7% to $333. These figures reflect a strong appreciation in property values, indicating that buyers are willing to pay more per unit area, which could be attributed to limited inventory and high demand.

The number of Homes Sold in January 2025 stands at 5,789, representing a significant year-over-year increase of 8.1%. This uptick in sales volume suggests a healthy demand for housing in New Jersey. Pending Sales have also increased by 3.6% to 6,576, further supporting the notion of a robust market. However, New Listings have only seen a slight increase of 0.7% to 7,009, which may not be sufficient to meet the growing demand.

Inventory levels have decreased by 2.1% to 14,062, contributing to a tighter market. The Months of Supply, a critical indicator of market balance, has dropped dramatically by 30.0% to 2.4 months. This significant decline suggests that the market is heavily skewed in favor of sellers, with limited inventory available for prospective buyers.

The Median Days on Market have increased by 5.0% to 47 days, indicating that homes are taking slightly longer to sell compared to the previous year. This could be a result of the higher list prices, which may be causing some buyers to hesitate or negotiate more aggressively.

The average sale to list ratio remains strong at 100.9%, although it has experienced a slight decline of 0.1% year-over-year. This suggests that homes are still selling very close to their list prices, reflecting a competitive market. The percentage of Homes Sold above list price has decreased by 1.7% to 46.3%, indicating a slight cooling in bidding wars.

Price Drops have increased by 2.8% to 15.9%, suggesting that some sellers may be adjusting their expectations in response to market conditions. Additionally, the percentage of homes going off the market in two weeks has decreased slightly by 0.3% to 26.7%, indicating that while the market remains active, some properties are taking longer to find buyers.

Overall, the New Jersey housing market in January 2025 is characterized by strong demand and rising prices, but also faces challenges related to inventory constraints and longer selling times. Buyers and sellers alike will need to navigate these dynamics carefully as they make decisions in this evolving market.