The New Jersey housing market in January 2025 presents a complex landscape with varying trends across key metrics. The Median Sales Price for homes in the state stands at $538,300, reflecting a modest year-over-year increase of 0.9%. This suggests a stabilization in home prices, contrasting with the more significant rise in the Median List Price, which has surged by 7.7% to $537,400. This disparity indicates a potential gap between seller expectations and buyer willingness, possibly influenced by broader economic conditions.

In terms of Price Per Square Foot, the market has experienced notable growth. The median Price Per Square Foot has risen by 9.8% to $325, while the Median List Price per square foot has increased by 8.7% to $333. These figures highlight a robust demand for space, which may be driving up prices despite the overall stabilization in Median Sales Prices.

Sales activity in New Jersey has been vibrant, with 5,789 Homes Sold, marking an 8.1% increase from the previous year. Pending Sales have also seen a rise of 3.6%, totaling 6,576. This uptick in sales activity is accompanied by a slight increase in New Listings, up by 0.7% to 7,009. However, inventory levels have decreased by 2.1% to 14,062, contributing to a tighter market environment.

The Months of Supply, a critical indicator of market balance, has dropped significantly by 30.0% to 2.4 months. This sharp decline suggests a shift towards a seller's market, where demand outpaces supply, potentially leading to increased competition among buyers.

Homes are spending a median of 47 days on the market, which is a 5.0% increase from the previous year. This slight extension in market time may reflect buyer caution or a more deliberate decision-making process in the face of rising prices.

The average sale to list ratio remains strong at 100.9%, though it has experienced a slight decrease of 0.1% year-over-year. The percentage of Homes Sold above list price is 46.3%, down by 1.7%, indicating a slight cooling in competitive bidding scenarios. Price Drops have increased by 2.8% to 15.9%, suggesting some sellers are adjusting expectations to align with market realities.

Finally, the percentage of homes going off the market within two weeks is 26.7%, a marginal decrease of 0.3% from the previous year. This stability indicates that while some aspects of the market are cooling, there remains a segment of properties that continue to attract swift buyer interest.