New Jersey’s property taxes and home values are among the highest in the nation. Nevertheless, data released in January shows demand for housing held steady in 2025, and many real estate experts expect demand to increase this year.
Jeff Otteau, chief economist for Otteau Group, Inc., said interest rates are expected to continue to drift lower, which will make it easier for people to buy homes. He said lower interest rates will also increase the number of homes being sold.
“Because the average interest rate for homeowners is around 4%, with interest rates that had risen as high as 7.8%, those existing homeowners, even though they wanted very much to sell their house and move on to whatever was next, they didn’t want to give up the advantage of that low interest rate on the home that they’re in now,” he said.
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