What’s Happening in the Cape May and Atlantic Housing Market in 2025?

By James and Katie Boyle

James and Katie Boyle are a dedicated real estate duo with over 25 years of experience, specializing in Cape May and Atlantic Counties.

You’ve probably seen headlines about a shaky housing market, but the reality is more nuanced. Some areas are cooling down, while others are heating up, leaving buyers and sellers uncertain about what to do. In this kind of market, guessing isn’t enough. You need clear, local data and a plan tailored to your situation. Here’s what’s really happening right now:

Interest rates are still high, and that affects everyone. Mortgage rates are currently between 6.8% and 7.1%. While that’s slightly lower than a few months ago, it’s still far above what we saw in the years before the pandemic. Higher rates mean higher monthly payments, and affordability remains one of the biggest challenges for buyers.

To address this, many buyers are turning to creative financing options, such as temporary rate buy-downs or adjustable-rate mortgages, to stay within budget. A preapproval letter is a good start, but it’s not enough to secure a loan. Buyers need a complete financial plan and a clear understanding of what they can truly afford, not just what the lender says.

For sellers, this shift means you’re dealing with a more cautious buyer pool. Pricing your home correctly is critical. Buyers are watching every dollar and are less willing to engage with overpriced listings. Offering help with closing costs or other buyer incentives can increase interest and help your home stand out.

The market behaves differently in one area compared to another. Some cities are seeing price growth of up to 9.4%, while others are starting to see a slight decline. Even within a single town, the difference between neighborhoods can be dramatic. One area might be flooded with inventory and sitting stagnant, while another might be seeing bidding wars.

This is where up-to-date, hyper-local market data makes all the difference. If you’re a buyer, cooling markets may offer opportunities to negotiate or find better value. If you’re a seller in a high-demand area, you could still see strong offers, as long as your pricing reflects current trends and not last year’s highs.

In 2025, real estate decisions require more precision than ever. The national trends won’t help you much. What matters is what’s happening in your specific neighborhood, price range, and timeline. If you’re trying to figure out whether it’s the right time to buy or sell, feel free to call or text us at 609-226-0678 or email at james@myboyleteam.com. We’ll help you understand what’s happening in your local market and what steps make the most sense for you.