Home inventory grows in October as interest rates deter buyers

High mortgage rates have slowed down the real estate market in October, with less home purchase applications and a drop in pending sales. But inventory continued to increase nationally, median listing prices decreased slightly and many properties for sale saw price cuts.

Marking the 36th straight month of increases, inventory levels continued to grow in October with a 7.4% year-over-year increase and a 1.9% month-over-month increase. And while inventory remains 6.7% below pre-pandemic norms, this represents the narrowest difference so far, said Realtor.com’s October Housing Trends Report.

The Northeast continued to be the leading region in the nation for inventory growth, with a 16.5% increase from last year.

Listings typically spent about 63 days on the market, which is about one more day than last year and two more days than the previous month.

The national median listing price was $415,000. That is down 2.2% from last year — marking the 12th straight month of listing prices falling year-over-year — and down 1% from the previous month. And 20.5% of listings had price reductions in October.

In New Jersey, there were 21,759 active listings in October, up 23.63% from the previous year and 3.44% from September 2026. And of those active listings, 8,600 were newly listed in October, Realtor.com market data showed.

The state had a median listing price of $550,000, unchanged year-over-year and down 1.7% month-over-month. There were 6,200 price reductions in October — 33.79% more than the previous year and 13.59% more than September 2026 — and listings stayed on the market for 45 days, Realtor.com said.

Mortgage rates also continued to tick up in October, sitting firmly in the 6% and 7% range for a standard 30-year and 15-year mortgage term. Rates for a 30-year fixed-rate mortgage ranged from 7.24% to 7.4%, and rates for a 15-year fixed-rate mortgage ranged from 6.6% to 6.73%, Freddie Mac reported.

How much has North Jersey’s housing inventory changed?

All 21 New Jersey counties had an increase in active listings compared with October 2025, and 19 counties had an increase in active listings compared with the previous month, September 2026.

In North Jersey, all six counties had sizeable increases in active listings from last year.

• Bergen: 27%

• Passaic: 35.17%

• Morris: 28.39%

• Essex: 34.65%

• Sussex: 19.59%

• Hudson: 38.09%

All six North Jersey counties also saw an increase in active listings when compared with the previous month.

• Bergen: 4.33%

• Passaic: 4.33%

• Morris: 4.03%

• Essex: 5.66%

• Sussex: 5.45%

• Hudson: 4.82%

How long are North Jersey homes staying on the market?

Sixteen New Jersey counties had listings stay on the market for more days than the year before. And compared with the previous month, nine counties had listings stay on the market for longer.

In North Jersey, Sussex was the only county where listings stayed on the market for fewer days than last year. The other five counties had listings stay on the market for more days.

• Bergen: 38 days (5.56%)

• Passaic: 34 days (6.25%)

• Morris: 35 days (6.06%)

• Essex: 38 days (8.57%)

• Sussex: 44 days (-8.33%)

• Hudson: 44 days (11.39%)

And compared with the month before, the counties of Morris and Sussex had listings stay on the market for fewer days, while the counties of Bergen, Passaic, Essex and Hudson had listings stay on the market for more days.

• Bergen: -2.56%

• Passaic: -13.92%

• Morris: 12.9%

• Essex: -3.8%

• Sussex: 6.67%

• Hudson: -3.3%

How much were median home prices in North Jersey?

Ten of New Jersey’s 21 counties had an increase in median listing prices compared with last year, while eight counties had an increase in median listing prices compared with last month.

In North Jersey, Passaic and Sussex counties saw an increase in median listing prices. Bergen, Essex and Hudson saw decreases, and Morris saw no change.

• Bergen: $784,500 (-0.33%)

• Passaic: $580,000 (5.56%)

• Morris: $699,000 (0%)

• Essex: $590,000 (-1.58%)

• Sussex: $459,000 (8%)

• Hudson: $599,000 (-2.2%)

And compared with last month, Sept. 2026, Bergen and Passaic were the only North Jersey counties where median listing prices increased.

• Bergen: 3.27%

• Passaic: 0.87%

• Morris: -0.13%

• Essex: -0.42%

• Sussex: -0.76%

• Hudson: -0.95%

How many North Jersey listings had price reductions?

Nineteen New Jersey counties had an increase in the number of properties with price reductions compared with October 2025, while 16 counties had an increase compared with September 2026.

In North Jersey, all six counties had an increase in the number of properties with price reductions compared with the previous year.

• Bergen: 364 reductions (49.18%)

• Passaic: 152 reductions (18.75%)

• Morris: 228 reductions (52%)

• Essex: 180 reductions (26.76%)

• Sussex: 156 reductions (56%)

• Hudson: 284 reductions (47.92%)

All six North Jersey counties also had an increase in the number of properties with price reductions compared with the previous month.

• Bergen: 19.74%

• Passaic: 24.59%

• Morris: 40.74%

• Essex: 20%

• Sussex: 20%

• Hudson: 21.37%

Here’s how the real estate market performed in all 21 New Jersey counties in October, according to Realtor.com:

Maddie McGay is the real estate reporter for NorthJersey.com and The Record, covering all things worth celebrating about living in North Jersey. Find her on Instagram @maddiemcgay, on X @maddiemcgayy, and sign up for her North Jersey Living newsletter. Do you have a tip, trend or terrific house she should know about? Email her at MMcGay@gannett.com.

This article originally appeared on NorthJersey.com: Home inventory grows in October as interest rates deter buyers