Home Sales Are Falling in NY and NJ: Here’s What It Means for You
The real estate market across New York City, Long Island, and parts of New Jersey is seeing a noticeable decline in home sales. While prices are holding steady or rising in some areas, the actual number of homes being sold is dropping. Whether you’re buying, selling, or investing, it’s important to understand what’s happening now—and what may come in the near future.
New York City: Buyer Power Is Growing
Home sales in New York City have declined significantly over the past year. Overall, listing prices have dropped by about 16.2% year-over-year, with a 6.2% dip just in the last 30 days. In Manhattan, co-op and condo sales fell 11% in early 2024, and 17% compared to the previous quarter.
While home values remain high in many areas, buyers are gaining more negotiating power due to increased inventory and longer days on the market.
Long Island: Prices Still Rising Despite Slower Sales
On Long Island, including Nassau and Suffolk counties, sales have slowed but prices are still climbing.
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Sales fell by around 1.2% in late 2024.
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Inventory is at its lowest level in over 20 years.
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Median home prices are up 10% to 12% year-over-year.
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Nassau County’s median home price reached $790,000 (a 3.3% increase).
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Suffolk County's median rose to $675,000 (an 8% increase).
Buyers here are still facing bidding wars, especially in move-in-ready properties, but the market is cooling slightly.
Bergen County, NJ: Sharp Drop in Sales
Bergen County has seen one of the sharpest declines in the region:
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Single-family home sales dropped nearly 30% over the past year.
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Condo sales declined 22%.
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Pending sales are down 25%.
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Available inventory remains very low, with less than 2 months’ worth of homes on the market.
Despite the slower pace of sales, prices haven’t fallen significantly due to continued buyer demand and limited supply.
Essex County, NJ: Similar Decline, Same Pressure
Essex County is experiencing similar challenges:
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Closed sales are down 24% to 27% compared to last year.
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Pending sales are down around 20%.
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Inventory levels remain low at under 3 months’ supply.
Like Bergen, Essex County home values are holding steady, but fewer buyers are making offers—mostly due to high interest rates and affordability concerns.
Where Sales Dropped the Most
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Bergen County, NJ – Nearly 30% fewer home sales.
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Essex County, NJ – Around 25% fewer sales year-over-year.
Where Sales Held Up Best
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Long Island, NY – Only a 1–2% dip in overall sales, with strong price growth.
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New York City – While certain areas are softening, NYC is still seeing solid buyer activity in many neighborhoods.
What This Means for Buyers and Sellers
For Buyers:
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In NYC, you’ll see more options and more room to negotiate.
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On Long Island and in North Jersey suburbs, expect competitive conditions with rising prices and low supply.
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High interest rates are pushing monthly payments up, so affordability will continue to be a concern.
For Sellers:
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Homes are still selling—especially if priced right and well-presented.
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The suburbs remain a strong sellers’ market, but pricing aggressively is critical to attracting offers quickly.
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In NYC, sellers may need to be more flexible on price and terms to close deals.
What to Expect in the Next 1–3 Years
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Home prices may flatten or grow slowly in areas with strong demand but fewer sales.
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Inventory will likely stay low, keeping pressure on buyers and limiting major price drops.
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Interest rates are expected to remain elevated, which could keep buyer activity lower than normal.
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Buyers may gain more control in certain parts of NYC, while suburbs like Nassau, Suffolk, Bergen, and Essex will remain competitive.
Final Thought
The real estate market in New York and New Jersey is shifting. Even though sales are down—especially in Bergen and Essex counties—prices remain strong in many areas due to low supply. NYC is becoming more buyer-friendly, while Long Island and parts of New Jersey continue to favor sellers.
If you're thinking about making a move, this is a great time to get educated and strategic. Whether you're buying or selling, understanding the local trends can help you make a smart decision.
For the latest updates and more personalized advice on how these changes may impact your real estate business, contact Jae Smith, founder and Real Estate Broker and advisor for Plush Properties Luxury Real Estate and homes sales.
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Jae Smith is a dedicated real estate broker with over 25 years of experience in the real estate industry. Known for his expertise in serving buyers, sellers, and investors across both commercial and residential markets. His extensive background includes a specialization in short sales, foreclosures, and REO properties, allowing him to navigate complex transactions with skill and confidence… Read full bio |
