How Tariffs and Economic Policy Are Affecting Northern New Jersey Real Estate

Over the past few months, the real estate market in Northern New Jersey has been strong—especially this past spring. But underneath that strength, there are signs that things are starting to shift. One of the key drivers behind this change? The current administration’s economic policies, particularly new and ongoing tariffs.

At Hera Realty, we’ve seen firsthand how these changes are affecting both buyers and sellers.

Sellers Are Becoming More Cautious

More and more sellers are feeling nervous about the idea of a market “correction”. With national headlines talking about slowing markets or even price drops in certain regions, many homeowners don’t want to wait. They’re choosing to list their homes now, while the market is still strong, instead of risking a dip later.

Buyers Getting Cautious

Buyers, on the other hand, are becoming more careful with their decisions. Homes that need renovation or major updates—often attractive to bargain-hunters and investors—are now less appealing. Why? Because with the rising cost of materials and ongoing labor shortages, many buyers are afraid that fixing up a home will become far too expensive. Tariffs on imported goods only add to this concern, making everything from lumber to appliances potentially more costly.

What Might Happen Next?

So far this spring, Northern New Jersey has stayed hot for sellers. We haven’t seen the same cooling trend that’s hit some other areas across the country. Homes are still moving quickly, and demand is solid. But that could be changing soon. The rapid rise in prices we've seen over the past few years seems to be slowing down and the market is leveling off.

Nobody can predict exactly where the market is headed, but there are a few signs worth watching. As foreclosure protections continue to ease and more mortgage defaults occur, additional starved inventory could hit the market. That shift could help balance things out—or even create a buyer’s market.

If that happens, investors who have been waiting on the sidelines for the right opportunity might find this to be the time to re-enter the market.

In summary

Northern New Jersey’s real estate market is still strong—but signs of change are starting to show. Sellers are listing sooner to avoid a potential correction, while buyers are more hesitant, especially about homes needing renovations. With rising costs, shifting policies, and economic uncertainty, both sides are treading carefully. A rise in inventory later this year could mean more opportunity for buyers and investors alike.