For three straight months, the seller's market kept spreading among the 12 counties I track. In August it reversed hard. Only two counties are Seller's Markets, down from six in July, 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 have some room.
The statewide median settled at $587,553 (down from July's $600K), days on market were unchanged at 43, and the sale-to-list ratio ticked up 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)
Data note: All figures in this report reflect August 2026 data sourced from the Redfin Data Center. Published September 12, 2026.
Methodology note (Oct 2026): Market labels and scores in this post come from the site's earlier single "Market Health Score." Since October 2026, dashboards show two measures instead: Market Type (months of supply) and Market Temperature (vs. each county's own history). Labels here may not match today's dashboards. The figures in this post reflect the data available when this was published. See the current county dashboards for current numbers, or how the new measures work.
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, and 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 went the other way. Its score rose to 77/100, the highest of the year for any county. The median is $756K (+9.9% YoY, the top price gain of the 12), with a 19-day DOM (median days on market) and a 104.4% sale-to-list ratio. Morris hasn't cooled, so July's advice for Morristown, Madison, and Chatham still holds: come pre-approved and ready to decide.
Union County held Seller's territory at 66/100: $728K (+7.8% YoY), a 23-day DOM, and the second-highest sale-to-list at 104.7%, behind only Essex. Midtown Direct rail access keeps it competitive while the rest of the market softens.
Where buyers gained leverage
Everywhere else the pressure came off. Four counties are now Buyer's Markets, up from two in July, and that's where negotiating room has come back.
Ocean County (37/100) is the shore county with the most room to negotiate. Its median dropped below $500K to $498K, it carries the most inventory of the 12 (3,955 listings), and it's the only one still closing below asking (99.1% sale-to-list). For a shore buyer who wants leverage, this is the window.
Middlesex County (29/100) has the lowest score this month: +0.6% YoY at $568K, a 70-day DOM, and 3,369 listings. Only Bergen sells more slowly.
Mercer County (35/100) cooled to $483K (+1.8%), reversing its summer surge as the Princeton corridor gave back some of its heat.
Somerset County (38/100) posted −4.7% YoY, and that number needs context. Somerset's median has swung all year (−12.7% in June, +6.9% in July, −4.7% now). That pattern is typical of mix shift, a change in which price tiers happened to close. Its 25-day DOM and 102.3% sale-to-list say the underlying market is still tight.
Hudson: a big price gain without the bidding
Hudson County posted the second-highest price gain of the 12 at +9.1% YoY ($747K), yet its health score is only 46/100 (Balanced). Homes sell at 100.2% of list, essentially at asking, with a 43-day DOM. Prices are up sharply, but homes aren't drawing the over-asking bids you'd expect from that number. It reads more like assessments and prices catching up than a competitive bidding market, which means Hudson buyers have more negotiating room than the headline appreciation suggests.
Essex and Bergen hold steady at the extremes
Essex County remains the bidding-war capital, with the highest sale-to-list of the 12 at 107.0% on a $738K median (+2.4%) and a 34-day DOM. Montclair, Maplewood, and Bloomfield keep closing well above asking while the rest of the market cools.
Bergen County is the priciest at $834K (+4.2%) and the slowest at a 76-day DOM. High-end homes take longer to sell, and with 3,642 listings, Bergen buyers have both selection and time.
Full county breakdown, August 2026
| County | Score | Median Price | YoY | DOM | Sale/List | Listings |
|---|---|---|---|---|---|---|
| Bergen | 40 — Balanced | $834K | +4.2% | 76 days | 102.9% | 3,642 |
| Burlington | 43 — Balanced | $410K | +1.1% | 32 days | 101.0% | 1,907 |
| Essex | 53 — Balanced | $738K | +2.4% | 34 days | 107.0% | 2,177 |
| Hudson | 46 — Balanced | $747K | +9.1% | 43 days | 100.2% | 2,362 |
| Mercer | 35 — Buyer's | $483K | +1.8% | 42 days | 101.0% | 1,380 |
| Middlesex | 29 — Buyer's | $568K | +0.6% | 70 days | 101.0% | 3,369 |
| Monmouth | 57 — Balanced | $756K | +3.6% | 21 days | 102.2% | 2,537 |
| Morris | 77 — Seller's | $756K | +9.9% | 19 days | 104.4% | 1,376 |
| Ocean | 37 — Buyer's | $498K | +2.8% | 36 days | 99.1% | 3,955 |
| Passaic | 48 — Balanced | $624K | +1.5% | 43 days | 104.3% | 1,375 |
| Somerset | 38 — Buyer's | $634K | −4.7% | 25 days | 102.3% | 1,076 |
| Union | 66 — Seller's | $728K | +7.8% | 23 days | 104.7% | 1,270 |
Zillow sees a rebound
Even as August's current data cooled, Zillow's 12-month forecasts moved up. They now project roughly +2% to +2.8% appreciation across NJ counties, up from around +1% earlier this summer. The market softened this month, but the forecasting models expect it to firm up over the next year. I'd read the cooling as a seasonal opening.
What to watch in September
The first question is whether the cooling deepens or August was the floor. Fall is NJ's secondary selling season. If September holds this softer pace with rising inventory, buyer leverage extends into the fall, which would make it the best buying window in over a year.
Morris and Union are the last two Seller's Markets. If either slips to Balanced in September, the frenzy is over for 2026.
Ocean is the clearest opening for Shore buyers right now, with a sub-$500K median and sales below asking. Watch whether fall buyers absorb that inventory or it keeps building.
Somerset's median has swung wildly for four months. Its sale-to-list and DOM (both still tight) are the better 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 strongest market of the 12
- Union County: 104.7% sale-to-list, held Seller's territory
- Ocean County: under $500K and below asking, the shore's most negotiable market
- Middlesex County: lowest score of the 12 (29/100), 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: the −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
A cooling market changes the strategy for buyers and sellers alike. Book a free consultation to go over the August numbers for your county and price 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
