“We’re seeing more sellers get concerned. They put their house on the market and think they’re going to get flooded with showing requests like we did a year ago, and that’s just not the case,” shares Ryan Bruen, team leader of the top-performing Bruen Team at Coldwell Banker Realty. “We still get a decent crowd at the open houses, a decent amount of interest, but nothing overwhelming like we’ve gotten used to.”
The phone calls from frustrated sellers are becoming more frequent, but nothing’s fundamentally wrong with the market. Instead, we’re experiencing a subtle but significant shift that’s catching many off guard – the transition from a market where “you couldn’t go wrong” to one where strategy, timing, and market intelligence matter more than they have in nearly a decade.
The New Market Reality
The data tells a clear story: buyer activity has lightened considerably across price points and neighborhoods. After years of overwhelming response to new listings, properties are now generating more manageable interest levels. The automatic bidding wars that became routine are becoming less predictable.
“It definitely feels like the market has quieted down from what we’ve seen recently,” Bruen observes. “When I put a house on the market now, showings are very light across the board in different price points, different neighborhoods. So it definitely feels like there’s a lot less buyers out there, a lot less activity.”
But here’s the crucial distinction most headlines miss – the majority of well-positioned properties are still performing well. “I’ve still seen most houses sell strong, most sell above list price. The ones that aren’t are still getting close to,” Bruen notes. The market hasn’t collapsed; it’s become more selective and strategic.
The Critical Shift for Sellers
The margin for error in pricing has narrowed dramatically, creating higher stakes for sellers who misread current conditions.
“It’s the difference between in the past getting 10 offers instead of 30 offers, and now it’s getting no offers instead of one or two offers. That hurts a lot more,” Bruen explains. “It’s also the difference between potentially getting a bidding war or one offer and negotiating close to list price as opposed to sitting on the market and then whittling down that price.”
The challenge extends beyond just setting the right number. Traditional pricing methods become unreliable when markets are transitioning because recent sales data reflects older market conditions.
“A house that sells today likely went under contract two months ago. So that is not necessarily an accurate indicator of the market today. It’s an indicator of the market two months ago,” Bruen points out. This lag time requires more sophisticated analysis and real-time market intelligence.
The Psychology Problem
Adding complexity to pricing strategy is buyer psychology. “For the last few months, those buyers are still very much expecting a bidding war,” Bruen notes. “So while you think you might be able to get this for your house, you want to make sure you price at an amount that will still attract that bidding war, so that buyer feels validated in their expectations and not reluctant that they’re buying a house that doesn’t have a bidding war.”
This creates a delicate balance, price to generate competition while accounting for fewer active buyers in the market.
The Buyer’s Evolving Landscape
For buyers, the market offers more breathing room than they’ve experienced in years, but identifying opportunities has become more complex.
“What I’m finding is deciphering the difference has become a little bit more challenging,” Bruen explains. “I’ve seen a lot more properties where you have multiple buyers on the cusp of making an offer and then a bunch of them not acting or deciding not to make an offer.”
This creates uncertainty about competition levels. A property might appear to lack competitive interest, but several buyers could be preparing offers simultaneously. “Yeah, no, we don’t have any offers in yet, but I’ve talked to these three agents who are in the process of writing up an offer, and then all of a sudden, those three agents that are writing up an offer, one of them does.”
Strategic Implications for Buyers
The key insight for buyers is understanding when to compete aggressively versus when to negotiate patiently. “There is a first mover advantage when you are in a bidding war,” Bruen notes. “If you sense that you are in a bidding war, it does often benefit you to come in strong from the beginning as opposed to come in little lackluster and then see how things plan out and react from that.”
The Interest Rate Factor
Interest rates continue influencing market dynamics, though the conversation has evolved significantly.
“I think that mortgage rates are still a huge factor. I think it might not seem like it as much because it’s become a less prevalent conversation,” Bruen observes. “The people where the mortgage rate was a big factor and they were waiting for that rate to come down to make a move… those people have become less vocal. They’ve taken more of a backseat.”
This doesn’t mean rate sensitivity has disappeared, it’s become less visible as affected buyers step back from active searching rather than remaining vocal about their intentions.
Political developments add another layer of potential change. “Donald Trump is very, very adamant that he wants mortgage rates to come down,” Bruen notes. “As Jerome Powell’s term comes closer to an end, there’s a lot more potential for Donald Trump’s influence to come into play… And because of that coming on the horizon, there’s been more talk in the industry of what that will look like and how that will upend the market.”
Luxury Market Insights
The luxury segment reveals important dynamics that offer broader market insights. Bruen’s experience in markets ranging from $1.5 million to $4 million shows how location and property type affect performance differently.
“The luxury properties in more commutable locations… operate much more differently than some of the other luxury markets that are a little more suburban and teetering on rural,” he explains. Properties with practical luxury features in convenient locations show more resilience than those with extensive recreational amenities.
“In the more commutable locations, those luxury markets are more practical. A $3 million house in Summit, while it’s a very nice house, it’s a little bit more of a normal house with nicer finishes, nicer appliances, a little bit more space, and maybe some easier commuting as opposed to completely unnecessary toys that are just fun, like barns and pools and ponds and ten car garages and tennis courts and pickleball courts.”
Looking Ahead: Summer Expectations
Weather patterns may provide additional insights into market direction. “We have had unseasonably cold and rainy weather so far this summer,” Bruen notes. “We’ve seen in the past a lot of the reason for the seasonality also has to do with the weather and how that affects people’s moods and motivations.”
The transition from cool, wet weather to hot, sunny conditions could reveal whether recent market softening was partly weather-related or represents a more fundamental shift. “It will be very interesting to see if we get any changes in consumer behavior with this new found hot, sunny summer weather.”
The key to navigating any market transition is working with professionals who recognize the changes and adapt their strategies accordingly. Whether buying or selling, success comes from understanding current conditions rather than relying on outdated approaches from previous market cycles.
For specific guidance on buying or selling in Morris County, visit bruenrealestate.com or call 973.294.8887.
