Late Summer 2026 Housing Market Update | Passaic & Bergen County

I talk to buyers and sellers in Clifton, Paterson, Passaic, Totowa, Woodland Park, Haledon, and Garfield every week. And the question I hear most often right now is the same one. What is actually happening in the market? Not what the news says. Not what the national headlines claim. The real numbers for Passaic and Bergen County in August 2026. Here is the truth. The market is still strong, but it is shifting. Homes are still selling above asking price, but the bidding wars are not as wild as they were six months ago. Inventory is still low, but it is creeping up. Mortgage rates are still elevated, but they have stabilized. And the smartest buyers and sellers are the ones who understand where the market is right now, not where it was in 2021 or where they hope it will be in 2027. Here is exactly what the numbers say and what they mean for you.

Where Prices Stand in Passaic County

The median home price in Passaic County is running between $566,000 and $600,000 depending on the data source and property type. That is up roughly 4% to 13% year over year depending on which segment of the market you are looking at. Townhouses and condos have seen the biggest surge, with median prices jumping 27.7% to $440,000 as buyers priced out of single-family homes look for more affordable entry points. Single-family homes in Clifton are running around $510,000 to $550,000. Paterson remains the most affordable entry point in the county with a median around $375,000. Passaic sits in the $400,000 to $450,000 range. Totowa and Woodland Park are higher at $480,000 to $550,000. And Haledon and Garfield fall in the $380,000 to $450,000 range.

The important number is not the median price itself. It is the trend. Prices in Passaic County are still climbing, but the rate of increase has slowed compared to the double-digit jumps we saw in 2024 and early 2025. That is normal for a market that has been running hot for three years. It does not mean prices are dropping. It means the market is normalizing. For sellers, that means you can still get a strong price, but you cannot price your home 15% above market and expect a bidding war to bail you out. For buyers, it means you have a slightly wider window to make a decision without five other offers coming in overnight.

Bergen County: The Premium Market

Bergen County continues to command a significant premium over Passaic County. The single-family median sale price hit $946,000 in June 2026, up 7.3% year over year. That is a $946,000 median, not average. Half the homes sold in Bergen County went for more than that. The inventory situation is even tighter than in Passaic County, with roughly 28 days of supply for single-family homes. Homes in Bergen County are selling near or above asking price, and the competition for well-priced properties in desirable towns like Ridgewood, Wyckoff, and Montclair is still fierce. The Hudson-Bergen Light Rail extension and the ongoing development boom in Hackensack and Paramus are driving additional demand from NYC commuters who are willing to pay a premium for transit access.

For buyers looking at Bergen County, the key takeaway is that you need to be prepared. Pre-approval in hand. A clear understanding of what you are willing to pay. And a realtor who knows the local market, not just the county averages. The difference between a $750,000 home in Lodi and a $950,000 home in Ridgewood is not just the price. It is the school district, the commute time, the property tax rate, and the long-term appreciation trajectory. You need to know which of those factors matters most to your situation before you start looking.

How Fast Are Homes Selling?

The days on market numbers tell the real story. In Passaic County, homes are going under contract in an average of 34 days. That is fast. Anything under 60 days is a seller's market. But 34 days is not the 14 days we saw in 2024. Buyers are taking a little more time to make decisions. They are negotiating harder on inspection items. They are not waiving contingencies as often as they were a year ago. The sale-to-list price ratio in Passaic County is running at 104.7%, meaning homes are selling for roughly 4.7% above asking price on average. That is still above asking, but it is down from the 105% to 107% range we saw earlier in the year.

What does this mean for you as a seller? It means pricing matters more than it did a year ago. A year ago, you could price your home 10% above market and still get offers because inventory was so tight that buyers had no choice. That is no longer the case. Buyers have slightly more options. They are more discerning. If your home is priced at $550,000 and the market says it is worth $510,000, it will sit. And the longer it sits, the more leverage the buyer has. I have seen homes in Clifton that would have sold in a weekend in early 2025 take 45 days to go under contract in July 2026 because the seller priced too high and had to drop twice to get to the right number. Do not be that seller. Price it right from day one.

What Is Happening With Mortgage Rates

Mortgage rates are the wild card in every real estate conversation right now. As of August 2026, 30-year fixed rates for primary residences in New Jersey are running between 6.5% and 6.9%. That is down from the 7.2% peak we saw in early 2026 but still well above the 3% to 4% range that buyers enjoyed in 2020 and 2021. The question I get every day is whether rates are going to drop. My honest answer is that I do not know, and neither does anyone who tells you they do. The Federal Reserve has signaled that rate cuts are possible later this year if inflation continues to moderate, but there are no guarantees. The bond market, which drives mortgage rates more directly than the Fed, has been volatile.

Here is what I can tell you with certainty. Waiting for rates to drop is a gamble. If rates drop to 5.5% next year, more buyers enter the market, competition increases, and home prices go up. The lower monthly payment you get from the rate drop is offset by the higher purchase price. If rates stay where they are or go up, you have lost a year of equity building and principal paydown while paying someone else's mortgage as a renter. The smart move is to buy when the numbers work for your situation, not when the national news tells you rates are low. I have helped buyers in Paterson and Clifton close on homes at 6.875% rates that cash flowed better than renting because the purchase price was right and the down payment assistance programs covered the gap. Do not let the rate headlines scare you out of a good decision.

Inventory: The Slow Creep Upward

Inventory is still low in both Passaic and Bergen County, but it is no longer at the crisis levels we saw in 2024 and early 2025. More homeowners are listing now that rates have stabilized, and the backlog of people who delayed selling because they did not want to give up their 3% mortgage is slowly working its way through the market. In Passaic County, active listings are up about 15% compared to this time last year. In Bergen County, the increase is smaller but still meaningful. For buyers, that means more options than you had a year ago. For sellers, it means you are no longer the only game in town. Your home needs to be priced right, show well, and be marketed effectively to attract the strongest offer.

The towns where inventory is growing fastest are the ones where new construction and development are most active. Clifton's ON3 campus is adding 1,000 apartments, which will eventually relieve some pressure on the rental market and potentially free up more single-family homes for sale. Paterson's revitalization projects, including the Great Falls Lofts and the planned Spruce Street conversion, are bringing new housing options to the city. Garfield's new school construction and the ongoing development along the Passaic River waterfront are also contributing to increased inventory in specific price ranges. If you are a buyer, these are the towns where you have the most negotiating room. If you are a seller in one of these towns, you need to be more strategic about your pricing and marketing.

What the Next 90 Days Look Like

The late summer and early fall market in North Jersey is typically the second busiest season of the year, behind only the spring. Families who did not buy in the spring rush are looking to close before the school year starts. Investors are positioning for the end of the year. And sellers who waited out the spring market are listing now to catch the fall buyers. Here is what I expect for the next 90 days in Passaic and Bergen County. Prices will continue to appreciate at a modest pace, roughly 3% to 5% year over year. Days on market will stay in the 30 to 45 day range. Inventory will continue to increase slowly as more sellers adjust to the current rate environment. And mortgage rates will stay in the 6.5% to 7% range unless there is a significant economic event that shifts the bond market.

For sellers, the advice is straightforward. Price your home based on the August 2026 market, not the May 2025 market. Stage it properly. Address the inspection items that will come up. And work with a realtor who knows how to market to the specific buyer profile in your neighborhood. The days of sticking a sign in the yard and watching 10 offers roll in are over. The market is still good. But you have to earn it.

For buyers, the advice is just as clear. Get pre-approved now. Rates are not going to drop dramatically in the next 90 days. If you find a home that works for your budget and your lifestyle, make an offer. Do not wait for the perfect market conditions that may never come. The buyers who succeed in this market are the ones who act decisively, not the ones who wait for the stars to align.

For investors, this is still a good time to buy multi-family properties in Passaic County if you are targeting the right neighborhoods and running the right numbers. Cap rates in Paterson and Passaic are still attractive compared to Bergen County, and the rental demand from residents priced out of homeownership is not going anywhere. The key is to buy at a price that leaves room for the interest rate and the NOI to work together. A property that pencils at a 6% cap rate with a 7.5% interest rate is a bad deal. A property that pencils at a 7.5% cap rate with a 6.5% interest rate is a good deal. The spread between the cap rate and the interest rate is what matters, not either number in isolation.

The Bottom Line

The North Jersey housing market in August 2026 is healthy, competitive, and shifting. Prices are still going up, but more slowly. Homes are still selling fast, but buyers have more room to breathe. Inventory is still low, but it is improving. And mortgage rates are stable, not falling off a cliff. If you are a seller, the window for a strong sale is wide open, but you need to price and present your home correctly. If you are a buyer, the window is open too, but you need to be prepared to move when you find the right home. If you are an investor, the opportunities are in the details, not the broad strokes. Run the numbers. Know your neighborhood. And make a decision based on your situation, not the headlines.

I have been helping families buy, sell, and invest in Clifton, Paterson, Passaic, Totowa, Woodland Park, Haledon, Garfield, and throughout Passaic and Bergen County for 15 years. I know the market. I know the neighborhoods. And I will tell you the truth about where things stand, whether you are buying, selling, or just curious. If you want to talk about what the market means for your specific situation, call me. Let us sit down and look at the numbers together.