By: Richard L. Smith
Across the country, the real estate market continues to adjust after several turbulent years, and I’ve found that New Jersey is no exception. 
Higher interest rates, tighter affordability, and cautious buyers have slowed the once-frenzied pace of home sales, but the market has not stalled.
Instead, it has entered a period of recalibration.
According to recent reporting by Reuters, the national housing market remains constrained by limited inventory, even as mortgage rates hover near multi-year highs.
Many homeowners who locked in low rates years ago are reluctant to sell, keeping supply tight and prices relatively firm despite fewer transactions. The result is a market that feels slower, but not weak.
That same dynamic is clearly visible here in New Jersey. While bidding wars are less common than they were at the height of the pandemic housing boom, demand remains steady, especially in well-located communities with access to transit, jobs, and amenities.
In many neighborhoods, homes that are priced realistically are still moving, just not overnight.
Up and down my own neighborhood in Harrison, NJ, the pattern is easy to spot. Many existing properties have already been bought or sold over the past few years, leaving limited opportunities for new buyers.
At the same time, the skyline continues to change, with new apartment buildings rising and rentals becoming a dominant part of the local housing landscape.
That shift reflects a broader statewide trend, as developers respond to strong demand from renters who are waiting out high interest rates or choosing flexibility over ownership.
Looking ahead to the next six to twelve months, most analysts expect more of the same: a steady but restrained market.
Prices are not expected to fall dramatically, nor is a rapid surge likely unless borrowing costs ease significantly. Instead, New Jersey real estate appears headed for a gradual, more sustainable pace, one that favors patience, realistic pricing, and long-term planning.
The heartbeat of the market right now is cautious optimism. Buyers are more selective, sellers are adjusting expectations, and communities continue to evolve.
While the frenzy may be gone, real estate in New Jersey remains active, resilient, and very much alive.