Saddle Brook, NJ – April 5, 2023 – Recent changes in the housing market in Bergen County, NJ, in February 2023 have proven that seasonality doesn’t have a real effect in real estate this spring. Where business usually begins to bloom this time of year, buyers and sellers alike are struggling to gain the upper hand in the current market.

Due to inflation remaining a nationwide challenge, the Federal Reserve raised their benchmark interest rates in February from 4.5% to 4.75%, making it the eighth rate hike since March of 2022, when interest rates were close to 0%.

Though most buyers were encouraged by the drop in mortgage rates to what seemed like a promising margin last month, the month of February has seen those rates creep back up once again. The recent change in mortgage rates has led pending sales to increase to 8.1% month-to-month as of last measure, but for most of Bergen County, the market changes have left little room for folks to budge on their positions. According to the National Association of REALTORS® (NAR), existing home sales remain declining for the twelfth consecutive month.

With buyer demand down and home sales continuing to slow, prices remain up from a year ago, positioning sellers to pivot. Sellers have been increasingly cutting prices and offering sales incentives to draw potential buyers. Although some homebuyers did bite, the reality of the spring market this year is that affordability is still a struggle for most buyers, and sellers are challenged to find solutions that do not necessarily satisfy their needs.

Greater Bergen REALTORS® Immediate Past President, Robert Funabashi, shares his insight on the market in Bergen County, stating, “Higher interest rates are making sellers unwilling to put their homes on the market because upgrading to a larger home will increase their payments tremendously compared to a year ago, thus leading to a lack of inventory. For those who are willing to look for a home with prices remaining high, there are inevitable bidding wars. It's a vicious circle and one that will take some time to normalize back to where we are all used to buying and selling in.” 

Highlights from February 2023 Report:

• Single Family Closed Sales decreased 39.3 percent to 229.
• Townhouse-Condo Closed Sales decreased 26.6 percent to 135.
• Adult Communities Closed Sales increased 50.0 percent to 3.

• Single Family Median Sales Price was down 4.1 percent to $605,000.
• Townhouse-Condo Median Sales Price was up 18.4 percent to $405,000.
• Adult Communities Median Sales Price was down 48.8 percent to $310,000.

Data as of March 20, 2023. All data from New Jersey MLS and Hudson County MLS. The margin of error for reported statewide numbers is +/- 4% at a 95% confidence level. Provided by New Jersey REALTORS®. Report © 2023 ShowingTime.

Click Here for the full ShowingTime report for the month of February 2023

About Greater Bergen Realtors®

Greater Bergen REALTORS® is a not-for-profit trade organization that serves more than 8,500 REALTOR® members throughout Bergen, Hudson, and Passaic Counties in New Jersey. We empower the success of those we serve by focusing on Connections, Advocacy, Resources, and Education. As the leading voice of real estate in Northern New Jersey, we advocate to protect private property and home-ownership rights.

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