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Market Update
As we move through May 2025, the New Jersey housing market continues to evolve, shaped by rising interest rates, construction tariffs, economic shifts and ongoing political developments. For buyers, sellers and investors, staying informed is key to navigating what’s becoming an increasingly selective and strategy driven market.
If you’re in East Brunswick or nearby towns, you’re likely feeling the tension, homes are still moving, but buyers are more cautious and pricing strategies matter more than ever.
Interest Rates: Pressure on Affordability
As of mid May 2025, 30 year fixed mortgage rates are averaging around 6.85% (Bankrate). While down slightly from earlier highs they remain far above the lows we saw in previous years. Many homeowners with lower locked in rates are still holding off on selling which continues to suppress inventory. Even with that demand in Central Jersey remains steady especially in areas popular with commuters and growing families.
Tariffs: Raising the Cost of Construction
Ongoing tariffs on materials like steel, aluminum and lumber have added an estimated 8 to 10% to construction costs (Business Insider). That’s making new construction slower and more expensive which limits options for buyers and keeps pressure on resale inventory.
Inventory & Price Trends
Housing inventory across New Jersey is still tight. In early May the state reported roughly a two month supply, well below what’s considered balanced (Houzeo). In Central Jersey homes continue to move quickly with nearly half selling above asking price. Monmouth County for example has seen average home values rise over 60% since 2019 from $436,149 to more than $712,000 (New York Post).
Political & Economic Environment
Inflation, trade policy and interest rate changes are still shaping the market. While the job market is holding strong buyers are cautious and many are stretching to afford monthly payments. Sellers who understand this and price accordingly are seeing faster results.
What This Means for You
For Buyers:
- If you’re financially ready consider locking in a rate and looking now while competition is moderate.
- Look beyond turnkey homes. There may be more value in properties needing light updates.
For Sellers:
- Use the low inventory to your advantage but price based on today’s buyer mindset.
- Emphasize upgrades that add value like energy efficiency, location and flexible layouts.
For Investors:
- Stay focused on long term demand especially in transit accessible towns.
- Pay attention to policy shifts that could affect costs, taxes or rental regulations.
Conclusión:
Despite the economic noise Central Jersey’s market is still moving. People need homes and smart strategy is winning. If you’re thinking about your next move let’s talk.
