How’s The Real Estate Market in South Jersey and PA? – Spring 2025 Update!

Spring is fast approaching and there is a lot of uncertainty in the world.  It may be a good time to check out how the current real estate market is doing in our South Jersey and Pennsylvania areas.   As you get ready for spring activities, such as planting, cleaning and home maintenance, you may be curious about the real estate market, especially with the new changes in this new administration and economy.

Here is a snapshot of the market for Spring 2025:

National Economy (because it has some effect on the local market)

Inflation is the main threat to home sales today.  We have been in an overheated economy these past few years. An overheated economy means that unemployment is low and the demand for goods and services is greater than the supply, this causes businesses to raise prices on consumer goods and services.  Due to rising inflation and construction costs, this causes higher mortgage rates and lower number of real estate sales.  The reason why we have an overheated economy is because the federal government provided way too much stimulus during the covid pandemic.  When the government prints too much money, the value of money decreases. 

Currently, the inflation rate is about 2.8%, which is higher than the Federal Reserve (“the Fed”) target rate of 2%.  That means that the economy needs to “cool” for them to lower interest rates.   Right now, the mortgage interest rate is about 6.7%.  It is predicted that they may come down a little – to the 6% to 6.5% range later this summer and down to 5.9% towards the end of this year.  A “cool” economy means lower employment and interest rates to lowering inflation. 

With the cuts in the new administration and the tariffs being implemented they may cause the economy to contract in the short term but will not have a direct effect on the real estate market as far as we can see.

Housing Market

New Jersey – the NJ real estate market currently has the lowest number of homes for sale at about 12,000.  Typically, that number is 30 to 40, 000.   That means that there are not many houses on the market, so many buyers, especially first-time home buyers, have simply decided to stay on the sidelines for the moment.   And because of the higher interest rates, homeowners have not been putting homes on the market because they don’t want to give up the low mortgage rates they currently have on their existing homes.  Therefore, the number of homes available for sale is incredibly low.  NJ has one of the strongest seller markets in the country right now.  A seller’s market is when the number of homes is far less than buyers looking for homes.  This is driving up the prices.    Also, not many new homes have been built in recent years, adding to the reasons why the housing inventory is very low.

In the south Jersey counties:  Mercer, Burlington, Camden, and Gloucester it is projected that home prices are going to rise this year between 4 and 5%.  To get specific data of a town you may be interested in buying in, reach out to me at ccr@ccrsellsrealestate.com and I can provide specific details that can help you make a decision of whether to buy or not.    (Source:  Otteau Reports)

Pennsylvania – the Pennsylvania real estate market is experiencing a slightly different type of market then south Jersey.  The number of homes in Bucks County increased 6.2% from the previous year.  In Philadelphia County, the number of homes for sale increased by 8.6%.   Although inventory is slightly increasing, home prices are too.  Bucks County prices increased about 6% from the previous year and Philadelphia prices increased 4.9%.   It is predicted that the market will be a seller’s market in Bucks County, which means that there are more buyers than homes for sale.   In Philadelphia, the market is predicted to be more of a balanced market.  A balanced market means the number of homes for sale is close to the number of buyers.  The home prices will not increase by much, which is good news for buyers looking to move to Philadelphia. 

Pennsylvania is having the same issue concerning higher interest rates that is happening in south Jersey, but not as extensive.  Sellers don’t want to sell their current homes due to the low interest rates they have on their mortgages.  This lack of homes for sale will increase prices this year, but not as much as the previous year.  This is better news for buyers in Pennsylvania than in South Jersey. To get specific data of a town you may be interested in buying in, reach out to me at ccr@ccrsellsrealestate.com and I can provide specific details that can help you make a decision of whether to buy or not.  (source:  https://rocket.com/homes/market-reports/ and various sites)

In Conclusion

So, in a nutshell, the real estate market in our area will be improving ever so slightly as this year continues.    As interest rates come down, that should put more homes on the market and buyers will be able to jump back into their home search.  The new administration cuts and implementation of the tariffs don’t appear to influence the housing market.    We should start to see a gradual improvement for buyers starting in the summer. 

Even if you are not in the market to sell or buy, it’s good to know where things are as it pertains to the current real estate market.   Especially if you are thinking of refinancing, taking out a home equity line of credit, or making renovations or upgrades to your home.

Any questions feel free to email me at ccr@ccrsellsrealestate.com.