Description

The housing market has been anything but normal for the past 5 years due to an unprecedented string of disruptions triggered initially by the Pandemic and followed by overstimulation of the economy, historically high levels of inflation which peaked at 9%, and a corresponding rise in interest rates.  These events had a dramatic effect on the housing market with transaction volume falling by 45%.  But all of that is now reversing course as inflation is declining, fears of a renewed inflation spike from tariffs have subsided and unemployment edges higher in the face of growing list of layoffs by large corporate employers.

As a result, the Federal Reserve cut interest rates by another 25 basis points in December for combined reductions of 175 bps (1.75%) since 2024.   Mortgage interest rates are following, having already declined from a peak of 7.8% to 6.1% today, and likely to fall further to 5.9% soon.  As this occurs, the ‘lock-in’ effect which has caused painfully low unsold inventory will begin to unwind.  These conditions, coupled with accelerating economic growth set the stage for improved homeownership affordability a more ‘normal’ housing market in 2026.

With the holiday season behind us, it’s time to get back to work and focus on what’s ahead.  Jeffrey Otteau has prepared this essential briefing to explain the latest trends affecting the New Jersey housing market and what to expect as we head into the prime spring selling season. Join us on this guided tour as he provides his forecast of where the market is heading so you can prepare your clients for what lies ahead and maximize your success!

Here is a rundown of the essential information you will learn about: 

• Housing Market Assessment – State, Regional & Local
• Interest Rate Predictions – 2026 & Beyond
• Home Price Trending – Today & Tomorrow
• Forward CMA Guidance – in a Normalized Housing Market
• Market Forecast – for the coming Months & Years