Welcome to my Hunterdon County Market Report—a monthly analysis grounded in local expertise and a deep understanding of our area’s real estate market. Rather than relying on broad national or statewide statistics, this report focuses specifically on Hunterdon County and the surrounding communities that influence local housing trends.

Each edition examines the key economic factors, market conditions, and emerging trends shaping property values in our region. More than just a collection of data, it provides valuable local context and insight that generic market reports often overlook. My goal is to help you understand not only what is happening in the market but also the factors driving those changes, so you can make informed and confident real estate decisions throughout 2026.

I am also a certified Senior Real Estate Specialist (SRES), helping seniors (and their families) navigate the next chapter of their lives.

You can also find a version of the report covering Somerset County here.

“What’s Happening in Hunterdon County’s Real Estate Market?

187  Under Contract Listings      $723K Average List Price       28 Average Days on Market

“Traditional Spring Sales Surge Fails to Materialize”

This is mostly due to elevated mortgage rates and constrained affordability, leaving buyers somewhat confused.

Statewide sales have decreased by about 1% YTD, while inventory has risen nearly 47% for the same period.

Inventory is up approximately 8% in Hunterdon County and 10% in Somerset County compared to this time last year.

Overall, our local market is in a much healthier position on the supply side than the rest of the state because buyer activity remains strong. While New Jersey as a whole remains an active market, our area has seen a more balanced increase in available inventory.

Our state has an overall supply of 2.3 months, while Somerset County has 1.6 months and Hunterdon has 1.5 months (both encouraging signs). We are holding our own, and the recent NYC elections could help, but it is too early to tell. Iran has added a new dynamic to this picture. You can read more about that here.

We saw 30-year interest rates have plateaued at around 6.5% in late June, and 2 additional 0.25% rate cuts were expected in 2026, which now seem in doubt. The Iran conflict has driven up oil, which affects the 10-year bond, and the interest rate is based on that bond yield. Sales activity in June has remained strong. Days on Market for unsold inventory have risen.

The last national employment report, for June, showed that total nonfarm payroll employment increased by 57,000 in June, and the unemployment rate
dropped to 4.2 percent in the U.S. There are many rumors of workforce reductions due to AI automation (which could persist and stretch out over the coming months as employees receive severance packages). Also, the national inflation rate dropped to 4.2%. The NJ employment report for May shows the state adding just a fraction of the jobs added in 2025, but it’s improving. The NJ unemployment rate is at 4.7% and is also improving.

From a broader perspective, the real estate market was beginning to show signs of normalization in early 2026. This shift typically starts at the higher price points, gradually working its way down the pricing ladder and often moving geographically from west to east. As inventory increases, competition grows. The result is homes spending more time on the market, fewer bidding wars above asking price, and more offers that now include contingencies such as mortgage approval, home sale, and inspections.

The Iran conflict affects interest rates, driving them up by about .5% on average. This has slowed activity, and the spring surge we normally see is now diminished, but it could return once conditions stabilize and interest rates drop back to around 6%. But, as always, interest rates seem to take the elevator up and then the stairs down.

The number of newly listed properties has risen nicely in recent months, helping to stabilize overall inventory levels. However, demand continues to outpace supply—particularly in the lower price ranges—driving prices upward in our region. Meanwhile, higher price brackets are already experiencing price pressure as those segments trend toward a more balanced, or even buyer-leaning, market.

If you’re thinking about buying or selling, the insights are in this analysis. Overall, the market continues to favor sellers, as steady buyer activity and relatively quick turnover are supporting price stability in our area. That said, higher price points are beginning to shift toward a more buyer-friendly environment.

Over the past five years, New Jersey home values have risen substantially, including a 5% increase in 2025. Although a more moderate 2 to 3% appreciation was projected for 2026, properties priced at $700,000 and above are seeing rising inventory levels, shifting the supply-and-demand balance in that segment.

In contrast, homes priced below this level are still appreciating, though the pace of growth has slowed. Moving forward, price gains are expected to be more measured, yet remain positive overall. Historically, the fifty-year average annual appreciation rate has stayed under 5 percent.

🏡📈

Market Statistics for Hunterdon County:

• Last month, the market saw a decrease in new inventory, with new listings down to 151, from 177 the previous month. This was up from 122 new listings in the same month in 2025.
• As of the beginning of this month, the available inventory has increased to 286 units, up from 280 units last month. This is up nicely compared to the 266 units available in the same month of the previous year. Much of this new inventory is at our higher price points. YTD inventory is now up by 40%.
• The number of units that went “under contract” last month was 187, up from 185 the previous month and up from 157 in the same month last year. YTD sales in NJ are down 1%.
• Over the past month, the average number of days on the market for units under contract has remained at 28, which is considerably higher than at this time last year. It is important to note that the days on market for unsold inventory are about 54 days across Hunterdon County.
• Currently, the month’s supply of inventory is just over 1.5, indicating we are still in a strong seller’s market. This trend holds for properties priced under $800K
• The current month’s supply still indicates a strong seller’s market, with prices rising.

Given current market conditions, where supply and demand favor sellers, postponing your sale until later in 2026 may not be the best option. The market is likely nearing (or at) its peak, and it’s unlikely that prices will remain elevated for much longer. Therefore, it would be wise to capitalize on the current situation and list your property for sale now.

In summary, acting promptly in the current market could benefit sellers.

New Jersey Residential Real Estate Market Forecast

The fall of 2025 delivered solid momentum across the housing market, with gains in both new listings and closed sales.

Although inventory levels have increased, well-priced homes continue to attract strong buyer interest and sell quickly, helping to sustain healthy sales activity and favorable pricing for sellers. As we look toward the balance of 2026, one of the biggest challenges remains finding the right move-up home while securing financing at an acceptable mortgage rate. For buyers, the recent uptick in interest rates—and the possibility of further increases—has introduced a greater sense of caution than was evident just a few months ago. Move-up buyers are experiencing many of the same concerns.

At the same time, current mortgage rates have kept many first-time buyers on the sidelines and prompted some potential move-up sellers to delay their plans. While recent rate movements offer some guarded optimism, affordability remains a significant obstacle. Even so, today’s market may present meaningful opportunities for buyers. With inventory improving and competition moderating, purchasers may have greater negotiating power and access to more favorable terms. Additionally, if interest rates decline, refinancing remains an option that could further enhance affordability over time.

Hunterdon County Real Estate Market Inventory Breakdown By Price For Last Month:

• 30% of sales in houses > $500,000
• 36% of sales in the $500,000 to the $1,00,000 range
• 34% of total sales (or 26 in total) in houses >$800,000

Hunterdon County Real Estate Market Inventory Breakdown By Municipality For Last Month

Two areas had no sales last month

• Frenchtown
• Stockton

Five areas had 1 or 2 sales each last month:

• Bloomsbury
• Califom
• Hampton
• Stockton
• W. Amwell

Hotspots:

• Clinton/Clinton  Twp. -28 Sales
• Raritan – 31 Sales
• Readington – 26 Sales

Approximately 45% of sales were concentrated in the hotspot areas in the past month. Here’s a breakdown of the average prices:

• New Listings Entering the Market: The average list price was $799,928.
• Units Going Under Contract: The average list price for units that went under contract was  $722,637.
• This represents a 10% difference between the average prices of new listings and units under contract.

In summary, understanding these price dynamics can provide valuable insights for buyers and sellers in the real estate market.

Note:

If you want to obtain a competitive price for your property based on its location and uniqueness, you can contact me at (908) 304-4660. By leveraging Coldwell Banker’s big data technology and Artificial Intelligence capabilities, you can gain a unique advantage in the market. I can demonstrate your area’s latest age and earnings breakdown, including where people are moving from and how to market directly to those specific areas and demographics. This approach will maximize the selling price while reducing the time on the market. Accurately priced and marketed homes tend to sell faster with the assistance of a seasoned real estate industry veteran and a local area expert.

“Why” is it happening…

New Jersey’s Economic Drivers:

New Jersey Home Sales and Inventory Levels:

Despite what national real estate headlines may suggest, the local markets in Hunterdon and Somerset Counties remain very strong. While broader media coverage may accurately reflect conditions in other parts of the country—particularly areas heavily driven by new development—this report centers exclusively on our two New Jersey counties, where the market is largely composed of resale homes. New construction here represents only a small portion of overall activity and is concentrated primarily in the upper price ranges.

• Sales across NJ declined 1% YTD, while unsold inventory increased by 47% since the first of the year.
• Locally, we saw a moderate increase in sales in June in both Hunterdon and Somerset counties.
• There are early signs of a pullback in pricing at the higher tiers, but the lower tiers are still seeing modest price increases, albeit less aggressively than in the past.
• First-time buyers are cooling off considerably due to higher prices (price resistance), inventory shortages in their price points, and higher interest rates. Their purchasing power has decreased for these reasons, and many have been priced out of the market for now. Our average age of first-time buyers is now 40.
• Potential sellers find it challenging to locate suitable housing in the current market and are hesitant to list until they have found it. They are also dismayed by higher interest rates on their homes and, for the most part, are unwilling to move unless there is an urgent reason, such as a life event or a job transfer.
• About 40% of all homes are owned outright. Of homes with mortgages, nearly 50% have a mortgage rate of 4% or less, and 50% have a mortgage rate of 4% or more.
• The current month’s inventory supply in Hunterdon County remains just over 1.5 months. In Somerset County, it is approximately 1.7 months due to rapid sales of new listings (velocity) and an active market.
• Hunterdon County has a 8% higher inventory than a year ago, and Somerset County is up about 10%. The unsold inventory in New Jersey has steadily declined since peaking at over 20,000, but has now risen again to approximately 19,500.
• Inventory increased across all price points as of the end of May.
• The new housing development has not kept pace with population growth and is now focused primarily on the rental market.
• In summary, lower inflation will lead to lower rates and increased sales. But the conflict in Iran is affecting that for the time being (read more).

Interest Rates:

• Interest rates plateaued around 6.5% in late June.
• Two additional .25% rate cuts were anticipated in 2026, but that appears to be in jeopardy.
• Rates will go down as inflation subsides and oil prices return to normal levels. They are based on the 10-year bond yield, which will rise as inflation, unemployment, and oil prices rise.
• Many buyers are considering attractive ARM rates and creative other buy-down plans as alternatives.
• Based on current rates, first-time buyer mortgage applications have declined, but debt restructuring and paying down high-interest debt remain active.
• The Fed’s efforts to slow things down have resulted in the above.

National Job Front:

• Total nonfarm payroll employment was up by 57,000 in June (less than expectations), and unemployment dropped to 4.2 percent, the U.S. Bureau of Labor Statistics reported. On top of that, May was revised up by 43,000 and April by 31,000.
• The labor force participation rate dropped to 62.3 percent. This rate is calculated by dividing the total number of workers employed or actively seeking employment by the working-age population. It also fluctuates because people take a second job to make ends meet.
• Wages rose slightly by .13 cents or .3%.
• Most of the lost jobs were in leisure and hospitality, while professional and business service industry positions were up.
• It’s important to note that we require about 175K in natural job growth each month just to keep pace with population growth.
• Job growth nationally in 2025 was under 200K vs. 1.5 million in 2024.
• The lower end of the job market (which typically does not own houses) has benefited most from this trend, with higher starting pay rates amid a labor shortage. Positions starting at mid- to upper $20 per hour are already being offered.

New Jersey Job Front:

• The NJ unemployment rate has been improving and is at 4.7% for the past month, as reported in May. The overall market has faced a tighter hiring environment. 
• Job losses remain prevalent across industries such as construction, food services, and accommodations. Retail and wholesale trade are also experiencing a downturn in some states. Even health care, social assistance, and manufacturing are shedding workers.
• Note that the number of jobs in New Jersey lags the national figure by a month.

Rental Market Trends:

• Rental prices in central New Jersey have risen, with a year-over-year average of just under 1.2%. They are currently averaging just over $2,400 per unit. However, recent data shows a slight decrease in these prices.
• The vacancy rate in central New Jersey is currently 5.8%, indicating a limited rental supply and driving up rents. It should be noted that the return of over 2 million illegal immigrants has greatly affected these figures.
• The rental market typically includes low-income renters due to a shortage of available housing. However, recent constraints in the mortgage market have also contributed to growth in this sector.

New Jersey Foreclosures:

• NJ’s delinquency rate (more than 90 days past due) increased in the 4th quarter of 2025 compared with the same period in 2024.
• NJ’s current delinquency rate has risen YOY by 13% in May of 2026 vs. 2025.
• Nationally, $11 trillion in equity is needed to protect homeowners during a potential recession.
• The average FICO score of mortgage holders is over 750, higher than during the 2008 financial crisis.
• A slowdown and recession could still cause job losses and put mortgages at risk.
• A housing bust is not expected, as home equity is significant thanks to recent appreciation.

Real Estate Market Recap

Forecast:

• The U.S. Consumer Price Index (CPI) for All Urban Consumers rose .3% in May, giving an annual rate of 3.4%.
• Mortgage rates have risen as stated and are now hovering around the 6.5% range.
• The local inventory is concentrated primarily in the higher price ranges, and the housing affordability index has increased slightly (based on wages, rates, and home prices). As a result, mortgage payments now have an all-time high share of gross income (which slows spending in other sectors).
• Due to recent unrest in NYC, interest in living in more suburban counties, such as Hunterdon and Somerset, has been tepid. In fact, many companies are now requiring greater on-site presence, reversing the westward trend.
• Retailing and the use of vacant industrial space will transform to meet new, altered demands and lifestyles.
• The local market will need to adapt to the new suburban renaissance, considering where people will work and what they need.
• The lingering question has been, “Can we keep this momentum up with moderately rising inventory?” as predictions for slower sales and price increases in 2026 have already been made.  In 2025, we saw more normalized increases (based on your price points) of 5%.
• Days on the market in our area have started to rise due to increased inventory and decreased sales. This may be what is needed to normalize price increases to pre-COVID levels.
• Younger buyers (millennials) are coming of age over the next 4 to 5 years, which will continue to put more demand on the first-time-buyer market, typically priced under $400K.
• Housing markets are adding much of the new inventory at higher price points, which is normalizing those results. Change usually happens from the top down.
• In a nutshell, 2025 looked a lot like 2024, with more inventory and slightly better rates. The 2026 numbers appear to be slightly lower than in 2025.
• More inventory means more options for buyers and a longer time on the market for sellers. Also, this is leading to fewer competitive offers.
• The Fed recently indicated it is close to ending its balance sheet runoff (quantitative tightening) and will become a net buyer of short-term Treasury bills starting in 2026 to offset the maturity of mortgage-backed securities. This move is aimed at addressing stress in overnight funding markets and can be seen as a form of easing, which could indirectly affect longer-term yields. There is also a move underway for Freddie Mac and Fannie Mae to buy up mortgage-backed securities. This, in turn, will hopefully lower interest rates.

This is substantial information, and the situation is evolving daily. Nevertheless, it appears to be moving in a more positive and normalized direction for now. If you require further clarification or have any concerns about how this could impact your circumstances, please don’t hesitate to contact me at (908) 304-4660. I’m always available to chat and help you gain a better understanding.

I am also a certified Senior Real Estate Specialist (SRES), helping seniors (and their families) navigate the next chapter of their lives.

Note: This information is presented as a public service by Joe Peters of Coldwell Banker Residential Brokerage. Although reasonable care has been taken to provide this information, it is advisable to seek guidance from a professional sales agent and avoid making any decisions based solely on my views, trends, or statistics. I am not responsible for any consequences arising from the use of this data.

If you have any questions or would like to talk through your situation, please call 908-304-4660

You can ask me a question or request a copy of the monthly newsletter here.