As we step into the heart of spring, the national housing market and our local South Jersey Shore market—encompassing Atlantic and Cape May Counties—are showing strong signals of activity, resilience, and change. Let’s dive deep into what’s unfolding in real estate, both nationally and right here in our coastal communities.
National Market Snapshot: Cautious Optimism Amid Changing Conditions
Mortgage Rates and Market Sentiment
Mortgage rates are hovering around 6.76% for a 30-year fixed loan, down from 7.09% a year ago. Forecasts suggest a gradual decline throughout 2025, with Q4 rates expected around 6.36%. Economists from NAR and Freddie Mac project a moderation in home price growth—less dramatic than in recent years, but still positive.
Buyer Activity is Rising
Mortgage applications jumped 13% year-over-year in early May, and pending home sales rose 6.1% in March. These forward-looking indicators suggest buyers are re-entering the market, supported by job growth and improving consumer confidence.
Inventory Remains Tight, Prices Stay Strong
Although inventory is up 30% from last year, it’s still 16% below pre-pandemic levels. This limited supply continues to support home prices nationally, with year-over-year price growth around 3.9%.
Local Market Focus: South Jersey Shore (Atlantic and Cape May Counties)
The South Jersey Shore market is gaining momentum this spring, with higher buyer interest, tight supply, and steady prices across both counties. Here’s a breakdown of recent trends.
Market Conditions at a Glance
| Metric | Atlantic County | Cape May County | Combined Estimate |
|---|---|---|---|
| Median Sold Price | $339,990 | $645,000 | ~$493,000 |
| Median Days on Market | 28 days | 38 days | ~33 days |
| Months of Inventory | 3.74 | 4.46 | ~4.1 |
| Sold-to-List Price Ratio | 98.1% | 97.6% | ~97.9% |
Sales Velocity
Median days on market have dropped significantly since January, from a peak of 81 days down to just 51 by April. Homes are moving faster and the spring market is in full swing.
Inventory Trends
New listings rose to 496 in April, and pending listings increased to 774—the highest point in over a year. This shows strong seasonal activity and a healthy market pace.
Home Prices
Cape May County leads with a median sold price of $645,000, up 19.4% month-over-month. Atlantic County remains more affordable but stable, with no change from the prior month.
Showing Activity
New Jersey showing activity is up 31.3% since January—higher than any of the previous four years. This reflects very strong buyer interest entering the summer market.
What This Means for Buyers and Sellers
Buyers: Stabilizing mortgage rates and increased inventory offer better opportunities, but competition remains strong, especially for well-priced properties.
Sellers: Homes are still selling quickly and close to asking price. This is a great time to list, especially before summer demand peaks.
Policy and Economic Watch
Tax reform legislation under discussion could impact deductions for mortgage interest and business income. While specifics are still in flux, these changes may influence real estate decisions later this year.
Looking Ahead
Both nationally and locally, the market is entering a period of steadier, healthier growth. Buyer demand is strong, inventory is improving, and mortgage rates are likely to ease slightly as the year progresses. Whether you’re considering buying, selling, or investing, now is the time to prepare and act strategically.