Why the Slowdown?

Several factors are converging this fall:

1. Government Shutdown Uncertainty

The federal government shutdown that began on October 1 has injected fresh uncertainty into the economy. In regions with a high concentration of federal workers — such as Washington, D.C., Maryland, and Virginia — housing activity dropped sharply. But even in other parts of the country, the ripple effects are being felt through delayed loan approvals, pauses in flood insurance processing, and a general cooling of consumer confidence.

2. Seasonal Shifts

Historically, buyer activity slows as we move into the holiday months. This year, that normal seasonal slowdown is compounded by macro-economic concerns and affordability pressures that have built up throughout 2025.

3. Affordability Fatigue

Despite mortgage rates easing slightly from their summer highs, home prices remain elevated in many areas. Combined with everyday cost-of-living increases, buyers are showing signs of fatigue — taking longer to make decisions or waiting for price reductions before jumping in.

4. A first-time-buyer squeeze.

Entry buyers are pulling back: their share of purchases fell to 24%—a 43-year low, as higher monthly payments and down-payment hurdles bite. On a “typical” listing, a first-timer with ~9% down faces an estimated $3,240/month all-in payment, while many compete with rising all-cash activity and older repeat buyers with more equity. Sentiment has turned cautious (“bad time to buy”), and affordable/starter inventory remains tight in many markets despite pockets of improvement.

What It Means for Sellers

Sellers shouldn’t panic — but they should adjust their expectations. Homes are taking longer to sell, and roughly one in five listings saw a price reduction in October.

This means pricing strategy and presentation matter more than ever. Staged, move-in-ready homes that are priced accurately for their market are still attracting interest. But the “list high and test the market” approach is not working as it did a few years ago.

What It Means for Buyers

For buyers, a slower market can actually bring opportunity. With less competition and more motivated sellers, this fall could be an ideal time to negotiate favorable terms. Local inventory is still higher than last year, meaning there’s more to choose from — and fewer bidding wars to worry about.

Local Perspective: Ocean County & the Jersey Shore

In our local markets — from Point Pleasant, Toms River and Forked River to Little Egg Harbor, and LBI — we’re seeing the same measured pace reflected in national data. Showings are steady but less frenzied, and buyers are taking a more analytical approach.

That said, homes in move-in condition or in sought-after communities (like Silver Ridge, Holiday City, Greenbriar, and Crestwood) continue to draw strong attention. Demand for shore-area properties remains consistent, though buyers are negotiating harder on price and inspection terms.

Staying Ahead

At Coldwell Banker Riviera Realty, we continue to monitor these market trends closely. Whether you’re buying or selling, informed strategy is everything — and our team is here to help you navigate shifting conditions with confidence.

If you’d like a personalized October Market Snapshot for your neighborhood or community, contact us today.

📞 Call your local Riviera Realty office
🌐 www.RivieraRealty.com
📧 ContactUs@RivieraRealty.com