Data note: All figures in this report reflect August 2026 data sourced from the Redfin Data Center. Published September 12, 2026.
For three straight months the story was the seller's market spreading. In August, it reversed — hard. New Jersey went from six Seller's Markets in July to just two in August, statewide appreciation cooled from +7.1% to +2.2% year-over-year, and active inventory climbed to its highest level of 2026. After a relentless spring and early summer, buyers finally got some room to breathe.
The statewide median settled at $587,553 (down from July's $600K), days on market held at 43, and the sale-to-list ratio ticked up slightly to 101.3%. Inventory rose to 32,750 active listings, up 8.8% year-over-year.
August 2026 at a glance: NJ statewide median $587,553 (+2.2% YoY) · 43 days on market · 101.3% sale-to-list · 32,750 active listings (+8.8%) · only two Seller's Markets left (Morris, Union) · four Buyer's Markets (Somerset, Ocean, Mercer, Middlesex).
Here's what cooled, what held, and where buyers now have the edge.
The Big Shift: Six Seller's Markets Down to Two
In July, Morris, Union, Passaic, Somerset, Essex, and Monmouth were all in Seller's Market territory. In August, only Morris (77/100) and Union (66/100) remain. Passaic, Essex, and Monmouth slipped to Balanced; Somerset fell all the way to a Buyer's Market. That's the clearest month-over-month cooling I've tracked all year.
Morris County is the exception that proves the rule — it actually strengthened to 77/100, the highest score of the year for any county. Median $756K (+9.9% YoY, tied for the top price gain in the state), a 19-day DOM, and a 104.4% sale-to-list ratio. Morristown, Madison, and Chatham simply refuse to cool. If you're buying there, nothing has changed: come pre-approved and decisive.
Union County held Seller's territory at 66/100 — $728K (+7.8% YoY), a 23-day DOM, and the state's second-highest sale-to-list at 104.7%. Midtown Direct access keeps it competitive even as the broader market softens.
Everywhere else, the pressure came off.
Where Buyers Just Gained Leverage
For the first time since winter, four counties are Buyer's Markets — and this is where negotiating room has genuinely returned.
Ocean County (37/100) is the shore's leverage play: median dropped below $500K to $498K, it carries the highest inventory in the state (3,955 listings), and it's the only county still closing below asking (99.1% sale-to-list). If you want the shore with room to negotiate, this is your window.
Middlesex County (29/100) is the most buyer-friendly by the numbers — +0.6% YoY at $568K, a 70-day DOM, and 3,369 listings. New Brunswick and the less-connected suburbs give buyers real time to shop.
Mercer County (35/100) cooled to $483K (+1.8%), a reversal from its summer surge — the Princeton corridor gave back some of its heat.
Somerset County (38/100) posted −4.7% YoY — but read that carefully. Somerset's median has swung wildly all year (−12.7% in June, +6.9% in July, −4.7% now), which is the signature of mix shift (which price tiers happened to close), not a market in freefall. Its 25-day DOM and 102.3% sale-to-list say the underlying market is still tight.
The Hudson Puzzle
Hudson County is worth a closer look: it posted the state's second-highest price gain at +9.1% YoY ($747K) — yet its health score is only 46/100 (Balanced), with a 100.2% sale-to-list (essentially at asking) and a 43-day DOM. So prices are up sharply year-over-year, but homes aren't drawing the frantic over-asking bids you'd expect from that number. It reads like assessments and prices catching up rather than a red-hot competitive market — and it means Jersey City and Hoboken buyers still have more negotiating room than the headline appreciation suggests.
Essex & Bergen: The Steady Extremes
Essex County remains the bidding-war capital — the state's highest sale-to-list at 107.0% on a $738K median (+2.4%), 34-day DOM. Montclair, Maplewood, and Bloomfield keep closing well above asking even as the broader market cools.
Bergen County is the priciest at $834K (+4.2%) and the slowest at a 76-day DOM — the widest gap in the state between price and pace. High-end simply takes longer, and with 3,642 listings, Bergen buyers have both selection and time.
Full County Breakdown — August 2026
| County | Median Price | YoY | DOM | Sale/List | Listings | Score |
|---|---|---|---|---|---|---|
| Bergen | $834K | +4.2% | 76 days | 102.9% | 3,642 | 40 — Balanced |
| Burlington | $410K | +1.1% | 32 days | 101.0% | 1,907 | 43 — Balanced |
| Essex | $738K | +2.4% | 34 days | 107.0% | 2,177 | 53 — Balanced |
| Hudson | $747K | +9.1% | 43 days | 100.2% | 2,362 | 46 — Balanced |
| Mercer | $483K | +1.8% | 42 days | 101.0% | 1,380 | 35 — Buyer's |
| Middlesex | $568K | +0.6% | 70 days | 101.0% | 3,369 | 29 — Buyer's |
| Monmouth | $756K | +3.6% | 21 days | 102.2% | 2,537 | 57 — Balanced |
| Morris | $756K | +9.9% | 19 days | 104.4% | 1,376 | 77 — Seller's |
| Ocean | $498K | +2.8% | 36 days | 99.1% | 3,955 | 37 — Buyer's |
| Passaic | $624K | +1.5% | 43 days | 104.3% | 1,375 | 48 — Balanced |
| Somerset | $634K | -4.7% | 25 days | 102.3% | 1,076 | 38 — Buyer's |
| Union | $728K | +7.8% | 23 days | 104.7% | 1,270 | 66 — Seller's |
The Counterpoint: Zillow Sees a Rebound
Here's the twist. Even as August's current data cooled, Zillow's 12-month forecasts moved up — now projecting roughly +2% to +2.8% appreciation across NJ counties (up from around +1% earlier this summer). In other words: the market softened this month, but the forward-looking models expect it to firm back up over the next year. Read the cooling as a seasonal opening, not a downturn.
What to Watch in September
Does the cooling deepen or was August the floor? Fall is NJ's secondary selling season. If September holds this softer pace with rising inventory, buyer leverage extends into the fall — the best window in over a year.
Morris and Union. The last two Seller's Markets. If either slips to Balanced in September, the frenzy is fully over for 2026.
Ocean's sub-$500K, sub-asking setup. The clearest buyer's opportunity in the state right now. Watch whether fall buyers absorb that inventory or it keeps building.
Somerset's whipsaw. Four months of wild median swings. Watch the sale-to-list and DOM (both still tight) rather than the median for the real signal.
Find Your County
All 12 county dashboards are updated with August 2026 data — 13-month price charts, DOM trends, inventory, price per sqft by city, and market-health analysis.
- Morris County — 19-day DOM, 77/100, the state's strongest market
- Union County — 104.7% sale-to-list, held Seller's territory
- Ocean County — sub-$500K, below asking, the shore's leverage market
- Middlesex County — most buyer time in the state (70-day DOM)
- Hudson County — +9.1% YoY but still negotiable near asking
- Essex County — 107% sale-to-list, still the bidding-war capital
- Bergen County — $834K, priciest and most patient market
- Monmouth County — $756K, 21-day DOM, cooled to Balanced
- Somerset County — −4.7% median swing is mix-shift, not a crash
- Mercer County — cooled to $483K, buyer leverage returning
- Passaic County — slipped from Seller's to Balanced
- Burlington County — $410K entry point
Related Reading
- NJ Real Estate Market Report — July 2026 — the peak, right before the cooling
- How to Appeal Your NJ Property Tax Assessment
- Types of Homes in New Jersey
A cooling market changes the strategy — for buyers and sellers. If you're weighing a move this fall, book a free consultation → and I'll walk you through what the August data means for your specific county and price point.
Mahesh Sangisetty is a licensed NJ Realtor (#2334343) with Boutique Realty, serving buyers, sellers, and investors across New Jersey.