Is It Really a Bad Time to Sell? Not in New Jersey, Experts Say
the staff of the Ridgewood blog
Ridgewood NJ, Whether it’s defending Taylor Ham versus pork roll, navigating jughandles, or taking full advantage of full-service gas stations, New Jerseyans have always paved their own path. So when national headlines declare that the housing market has turned against sellers, Garden State homeowners should take those warnings with a grain of salt.
According to Douglas Tomson, CEO of NJ Realtors, the national real estate narrative simply does not reflect New Jersey’s local reality.
While national headlines warn of mounting inventory, fewer buyers, and cooling prices, New Jersey remains a resilient seller’s market. The real issue isn’t a lack of demand—it’s that local homeowners are being held back by a few key financial dynamics.
What’s Really Holding New Jersey Homeowners Back?
If the market heavily favors sellers, why are so many staying put? Industry data and market trends point to two major factors creating a bottleneck in Garden State real estate:
1. The Mortgage Rate “Lock-In” Effect & Mindset Shift
A common belief is that residents are leaving the state in droves. However, U.S. Census data shows New Jersey ranking 47th in total domestic net migration (with a net loss of 63,900 residents moving primarily to Pennsylvania, New York, and Florida).
The bigger challenge is local movement. Homeowners who secured a 3.5% mortgage rate in 2016 hesitate to give up those rates to buy another home at higher prices and double the interest rate.
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The Fix: Sellers need a mindset shift. Years of accumulated home equity can significantly offset higher purchase costs, while limited housing supply ensures buyer competition remains exceptionally strong.
2. Capital Gains Taxes & Sale Fees
Homeowners who have held properties through years of massive appreciation face another hurdle: capital gains tax liability and additional transaction fees, such as New Jersey’s Graduated Percent Fee (often called the mansion tax). These costs take a chunk out of proceeds, causing hesitation among potential sellers.
The Self-Fulfilling Prophecy of the NJ Housing Market
This hesitation creates a feedback loop:
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High buyer demand and low inventory keep property values strong.
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Sellers hesitate due to perceived costs and negative national news.
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Inventory shrinks further, making the overall housing market less accessible.
The core problem in New Jersey isn’t that it’s a bad time to sell—it’s that national news persuades local sellers to sit on the sidelines when demand is actually on their side.
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