Demarest, NJ 07627 Real Estate Market Report

ZIP Code: 07627
Report Date: April 2026
Market Temperature: NEUTRAL
Scope: Single-Family Residential (SFR) listings and comps only

---

Executive Overview

The primary market indicator in Demarest, NJ (07627) is the median sold price of $1,450,000, which represents the most reliable signal of recent transaction value and realized market activity. Recent data show prices are generally up year-over-year, suggesting continued appreciation, but listing behavior and transaction timing indicate some pricing friction between seller expectations and closed transactions.

Liquidity appears mixed: the neighborhood shows relatively constrained active supply in the analyzed sample and a long sales cadence with a median days on market of 273 days, which may indicate slower sales velocity and higher holding periods for sellers. Market temperature is characterized as neutral, while rent trends are up and interest rate pressure is elevated, a combination that supports stronger rental demand but constrains buyer affordability and may temper near-term price acceleration.

---

Market Overview

This analysis is based on a sample of properties from this ZIP code (up to 200 sold properties and up to 100 active properties). The median prices below are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

---

Market Metrics

Note: The property counts shown above represent only the properties analyzed in this report sample, not the total inventory for this ZIP code. Median prices are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

---

Rental Market

Note: The relationship between property values and rental rates reflects different market dynamics. Higher-priced properties may have lower rental yields due to factors such as luxury market positioning, owner-occupancy preferences, or long-term appreciation strategies rather than immediate rental income maximization.

---

Property Taxes

---

Liquidity & Velocity

Note: A Sale-to-List Ratio near 100% can occur when properties sell at or near their final listing price after price adjustments during the listing period, even when initial listing prices differ significantly from sale prices.

---

Market Trends & Context

Understanding Market Temperature

A Neutral market indicates balanced conditions where neither buyers nor sellers have a strong advantage, typically characterized by flat price trends, extended but stable days on market, and moderate inventory relative to sales.

Current Mortgage Rate Context

Market-level mortgage rate comparison for this area:

Current 30-year fixed mortgage rates in Demarest NJ 07627 are averaging 6.19% compared to approximately 5.92% when loans originated in 2026.

Note: Interest rate comparisons provide market context. The existing "Interest Rate Pressure" metric above shows the qualitative market impact.

---

Key Findings

1. Median sold price: $1,450,000 confirms transaction-level strength while indicating realized values are substantially lower than asking expectations; sellers should align pricing with recent closed comps to avoid extended time on market (pricing friction).

2. Median days on market: 273 signals slower sales velocity; agents should plan for extended marketing timelines and consider targeted staging or incentives to accelerate closings.

3. Median listing price: $2,937,000 highlights a significant gap between asking and realized prices and suggests seller expectations may be optimistic; pricing strategies tied to recent sold comparables will be critical to reduce time on market.

4. Median market rent: $4,290 is rising alongside rents (up), which supports investor interest in rental cash flow but must be weighed against elevated financing costs.

5. Interest rate pressure: elevated (current 30‑year averages ~6.19%) is constraining affordability; expect buyer pools to be more rate‑sensitive and for transaction structures to emphasize rate mitigation or larger down payments (elevated interest rate pressure).

---

Notable Properties

The following 8 properties represent notable market examples and recent transactions that illustrate key market dynamics. These are illustrative examples selected for their significance (top sales, market benchmarks, quick sales) and are not the basis for the statistical calculations shown above.