Mortgage rates have hit a three-year low, but what does that mean for home prices and inventory in your neighborhood? We break down the latest data for North Jersey and beyond
file photo , not current
the staff of the Ridgewood blog
Ridgewood NJ, The February 2026 real estate market is sending mixed signals that have both buyers and sellers paying close attention. While housing inventory growth nationwide continues to stall, a major shift in lending could be the catalyst buyers have been waiting for: mortgage rates dipped below 6% for the first time in over three years.
If you are planning to buy or sell in New Jersey, understanding these shifting currents is vital. Here is the latest breakdown of the market data.
National Market Snapshot: A Delicate Balance
Nationwide, February marked the 28th consecutive month of inventory growth, yet the pace of that growth has slowed for nine months straight. Inventory levels remain 16.8% below pre-pandemic norms, keeping the market competitive.
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Active Listings: Up 7.9% year-over-year.
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New Listings: Increased 2.4% annually and 10% month-over-month.
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Time on Market: Homes are taking about 70 days to sell (4 days longer than last year).
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Median Listing Price: Currently $403,450, a 2.1% decrease from last year.
The View from New Jersey: County-by-County Breakdown
The Garden State is moving at its own pace. With a statewide median listing price of $529,000, we are seeing a 2.93% decrease year-over-year, but a 2.02% increase since January 2026.
North Jersey Inventory Shifts
New listing volume fluctuated across North Jersey, with Morris County standing out as the only area to see a year-over-year increase in new listings.
| County | New Listings (YoY Change) |
| Bergen | -9.46% |
| Passaic | -3.96% |
| Morris | +13.33% |
| Essex | -16.99% |
| Sussex | 0% |
| Hudson | -4.79% |
Pricing Trends: Where Are Prices Moving?
While median prices decreased in Bergen, Essex, and Hudson compared to last year, Passaic, Morris, and Sussex saw moderate growth. Notably, Essex and Hudson were the only two counties in North Jersey to see a slight decrease in median price compared to the previous month (January 2026).
3 Key Takeaways for Buyers and Sellers in 2026
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Mortgage Rates Are the New Wildcard: With rates falling into the 5.35%–6.11% range (Freddie Mac), we expect to see more buyers entering the market who were previously sidelined.
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Price Reductions Are Rising: If you are a seller, take note: 15.5% of national listings saw price reductions in February. Pricing your home competitively from day one is more important than ever.
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Local Expertise Beats Broad Trends: As shown by the variance between Morris and Essex counties, national news doesn’t always tell the story of your specific street. Working with an agent who understands your town’s inventory levels is your best advantage.
Frequently Asked Questions (FAQ)
Are home prices falling in New Jersey?
It depends on your county. While the state median is down 2.93% year-over-year, some counties like Passaic and Sussex are still seeing year-over-year price growth.
Is now a good time to buy a home in NJ?
With mortgage rates reaching a three-year low, affordability is improving. However, because inventory remains tight in many areas, having a pre-approval and a clear strategy is essential.
Why are homes taking longer to sell?
Nationally, homes are staying on the market for 70 days. This shift indicates that buyers are more selective and less likely to engage in the frantic bidding wars of previous years.
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Many people who own a home with a low interest rate are not going to sell and upgrade if they have to pay a higher interest rate on a more expensive home
Once rates decline, there will be lots of inventory on the market especially from couples with a condo in hoboken looking to move to the suburbs.
Lots of us who own our homes outright hesitate to sell due to the capital gains taxes on a home we have owned for many years. “IF” the cost basis was increased/indexed for inflation, then our tax would be less, we would sell… and more homes would be available for buyers.