As I write this article, mortgage interest rates have appeared to stabilize under 7%, averaging 6.8% for fixed-rate mortgages and 6.75% for adjustable-rate mortgages. This stability has resulted in a 13% increase in mortgage applications compared to a year ago.
Despite the recent Zillow forecast that home prices will start to decline, in our local housing market, housing supply is still limited and exceeded by strong buyer demand. New Jersey is one of only three states with the highest price increase in home sales year to year of 6.9%.
In fact, a year-to-year home sale comparison shows an average sale price increase of $52,000. A year ago, we had 263 homes sold after an average of only 26 days on the market. For the same period in 2025, we had only 255 homes sold after an average of only 26 days on the market. In both 2024 and 2025, homes sold for an average of 106% of the asking price for the same period.
So, what does it take to get over the asking price for your home? Here are some suggestions based on the most recent trends in home sales. First, the popular emphasis on ‘curb appeal’ is still true. By simply replacing your garage doors with maintenance-free insulated aluminum or vinyl doors, you could get a potential return of 194%. Similarly, replacing your front door with a steel insulated door could yield a 188% return.
Over the past year, there has been a shift away from cool gray, monochromatic interiors and angular lines to warmer earth shades, natural wood tones, and curved lines. This style has been labeled ‘organic modernism’, featuring natural materials such as hardwood flooring, natural wood kitchen and bathroom cabinetry, stone fireplaces, cotton fabrics, rattan lamp shades, etc. A recent study by Zillow shows these features can drive up home sale prices by an average of 3.5%.
As younger buyers are starting to focus on environmental responsibility, they are selecting renewable materials such as cork flooring, natural materials like quartzite and soapstone counters, and smart technology to control heating and electrical systems.
Even with a limited selection of homes for sale, buyers still prefer to buy a remodeled home and are willing to pay 3.7% more.
So the key is to make updates to your home that will maximize the return. One simple, cost-effective update is painting the whole interior of the house with current trendy colors using a low-VOCS paint. Using varying shades of the same color throughout the home offers a pleasant continuity that is appealing to buyers. Installing new bathroom vanities and low-flow toilets in colors that complement existing tile patterns and colors is another update that yields a great return on investment. Removing wall-to-wall carpeting and having hardwood floors refinished will make your rooms look larger and appeal to buyers concerned with indoor air quality.
For more advice on preparing to sell your home, please contact me at dianebelcuore@optonline.net or 908-872-5473.
For additional information please contact:
Diane Belcuore
Realtor ®
908-872-5473
dianebelcuore@optonline.net
NJ 5 STAR AWARD Winner 2014, 2015, 2016, 2017, 2018,2019,2020,2021
Accredited Staging Professional
