In August 2025, more homes appeared on the market, fewer closed, and prices continued to increase.

Closed sales dropped 5.4% year-over-year and the number of homes for sale rose 11.4%. Despite lower demand, the median home price increased 6.6%. This shows that well-prepared listings in desirable locations still demand strong dollars.

Power balance is leaning toward buyers, but sellers with good pricing and presentation still sell.

NJ vs. U.S.

Nationally, existing home sales reached a Seasonally Adjusted Annual Rate of 4.01 million units, up 0.8% YoY, exceeding expectations. U.S. inventory increased 15.7%, and national price growth was almost flat at +0.2%.

New Jersey sales are down 5.4%, inventory increased 11.4%, and prices rose quicker at +6.6%. So, buyers have more choice than last year, but the most sought-after homes remain expensive.

By the Numbers

Closed Sales (YoY):

• Single-Family: -4.7%
• Townhouse-Condo: -9.2%
• Adult Communities: -1.3%

Median Sales Price (YoY):

• Single-Family: $625,000 (+5.9%)
• Townhouse-Condo: $440,495 (+2.7%)
• Adult Communities: $380,000 (+3.1%)

What this Depicts

• Demand is selective, not absent. The sharpest sales decline is in townhouse-condos (-9.2%), where total monthly cost (mortgage + HOA + insurance) can pinch buyers.
• Single-family still leads pricing power (+5.9% to $625k). Space and privacy remain premium.
• Adult communities show the smallest sales decline (-1.3%) and steady price growth (+3.1%), indicating consistent, needs-based demand from downsizers and 55+ buyers.

Market composition: These three segments combined tallied 7,981 closings in August: ~70% single-family, 21% townhouse-condo, 8% adult community. The market’s center of gravity remains decisively single-family.

National Price Yardstick:

• NJ single-family median ($625k) is ~48% higher than the national median ($422.4k).
• NJ townhouse-condo median ($440,495) is ~4% higher than national.
• NJ adult community median ($380k) sits ~10% below the national overall median (category mix differences apply).

Supply-Demand Balance: Where Leverage Is Shifting

• Supply up (+11.4% homes for sale) + Sales down (-5.4%) ⇒ easing conditions. Expect slightly longer market times and more room for negotiation than last year.
• Pricing power hasn’t vanished. A +6.6% median price tells us buyers will still stretch for move-in-ready homes in desirable locations.
• Micro-markets matter. School districts, commute patterns, and turnkey condition drive outperformance; dated homes or over-ambitious list prices will sit.

Guidance for Sellers (Do This Now)

All Sellers

• Price to the market, not above it. With more competing listings, a 2–3% overreach can delay showings and force a larger cut later. If you see low traffic in week 1–2, adjust early.
• Win on condition. Pre-list a light “refresh”: paint, lighting, landscaping, and minor handyman fixes. Provide a pre-listing inspection summary to build trust and justify price.
• Finance creativity sells. Offer a rate buydown or closing-cost credit to keep monthly payments palatable. In an inventory-rising market, these incentives separate you from the pack.
• Market like it matters. Professional photos, floor plans, a short lifestyle video, and a clean, staged presentation can add real dollars to your net.

Single-Family Sellers

• Lean into lifestyle. Yard, WFH office, bedroom count, storage, EV-ready garage, spell it out.
• Appraisal strategy: If you’re near a recent high comp, prep an upgrade sheet and inspection receipts to help defend value.

Townhouse–Condo Sellers

• Tackle the total monthly cost objection. Publish the HOA fee, what it covers, and recent HOA reserve/financial health. Buyers hesitate when the HOA is opaque.
• Highlight turn-key and amenities: in-unit laundry, parking, elevator, gym, and walkability.

Adult Community Sellers

• Lifestyle and convenience sell. Single-level living, accessibility features, proximity to health services, clubhouse programming, be specific.
• Make it move-in simple. Include handyman punch-list completion and offer a modest credit for flooring/paint to cut buyer friction.

Guidance for Buyers (How to Regain Leverage)

All Buyers

• Use the inventory surge. With listings up 11.4%, compare more homes before bidding. If a property needs work, negotiate repairs or credits; you’re more likely to get them now.
• Think monthly, not just total price. Model payments with taxes, insurance, and HOA (if any). Ask your lender for rate buydown and seller-credit scenarios; a 2-1 buydown can bridge affordability without overpaying.
• Bid precisely. If DOM is stretching and there are no competing offers, start below ask with repair credits. If it’s turnkey in a top school district, move fast and make your first offer clean.
• Inspection leverage is back. Keep your inspection, but pair it with a specific repair/cap rather than blanket waivers.

Single-Family Buyers

• Target homes needing cosmetic updates. You’ll avoid bidding wars and can finance improvements smartly (ask your lender about renovation-friendly options).
• Be tax-savvy. Property taxes vary widely in NJ; compare total monthly cost across towns.

Townhouse–Condo Buyers

• Audit the HOA. Request budget, reserves, and special-assessment history. A healthy HOA can save you thousands; a weak one can cost you thousands.
• Compare HOA-inclusive living vs. SFH maintenance. Sometimes the condo’s all-in number is better than it looks.

Adult Community Buyers

• Prioritize accessibility and community fit. Look for single-level layouts, wider doorways, and on-site services you’ll actually use.
• Negotiate gently but firmly. This segment’s closings dipped the least (-1.3%), so expect moderate leverage, not unlimited.

Strategy Signals to Watch in September–October

• Price reductions: With inventory higher, expect more list-price trims, a buying opportunity for patient shoppers.
• Time on market: Gradual lengthening favors buyers asking for credits/repairs.
• Mortgage-rate wobbles: A small rate dip can quickly revive competition. Stay pre-approved and rate-watch ready.

Bottom Line

New Jersey is shifting from a sprint to a strategic match. Buyers finally have breathing room and the ability to negotiate meaningful credits, especially where properties need updates or carry higher HOA fees. Sellers can still achieve excellent outcomes if they price to the market, present impeccably, and sweeten terms where it counts. The data says leverage is balancing, not collapsing. Use it intelligently.

August 2025 delivered a clear split-screen for New Jersey’s buyers and sellers. Single-family homes remain the price leader with tight, but easing, supply; townhouse-condos show the sharpest cooling with longer days on market and renewed negotiation power for buyers; and adult-community housing is expanding fast, giving 55+ movers far more choice without destabilizing prices.

Across the county, that means strategy, not speed, wins: list smart, present perfectly, and use credits or rate buydowns to bridge affordability; as a buyer, compare more homes, keep your inspection, and negotiate total monthly cost (mortgage + taxes/HOA), not just the sticker price.

Information courtesy of RE/MAX 1st Advantage