Real Estate Trends to Expect in 2025: What Buyers and Sellers Need to Know (2)

Real Estate Trends to Expect in 2025: What Buyers and Sellers Need to Know (2)

As we look ahead to 2025, the real estate market in the Bay Head and Mantoloking areas is expected to see some interesting trends. Whether you’re thinking of buying, selling, or just keeping an eye on the market, knowing what to expect can help you make smart choices. Let’s break down what buyers and sellers should know about real estate in the coming year.

1. Home Prices: A Steady Climb?

Over the past few years, home prices in Bay Head and Mantoloking have risen steadily. According to the National Association of Realtors (NAR), coastal property values across the U.S. have increased by an average of 8-10% annually since 2020 in shoreline communities, like Bay Head and Mantoloking, which have performed even better due to high demand.

In 2023, Bay Head and Mantoloking saw average home prices rise by 12%, with the median home price in Bay Head at $1.9 million and Mantoloking at $2.5 million. Experts forecast 4-6% annually in 2025 as the market stabilizes.

Key Metric: Homes with ocean views can command premiums of up to 25% more than inland properties, per a study from Zillow.

Demand remains strong due to the area’s charm, top-tier schools, and waterfront proximity. Sellers with well-maintained, ocean-view homes are positioned to attract interest from buyers willing to pay top dollar. Buyers should consider acting early as mortgage rates average 7.3% for 30-year fixed-rate loans, with predictions for slight easing by Freddie Mac.

2. Interest Rates: What to Expect

Interest rates have been volatile in recent years. According to Freddie Mac, the average rate for a 30-year fixed mortgage in November 2024 was 6.50%. However, the Federal Reserve's recent indications of slowing rate hikes could lead to stabilized or slightly lower rates in 2025.

Buyers' Consideration: A 0.5% decrease in interest rates up to $100 per month on a $400,000 loan.

Sellers should be mindful that high rates may reduce the pool of qualified buyers. However, prime locations like Bay Head and Mantoloking will likely retain buyer interest, as demand for coastal properties remains resilient.

3. Market Conditions: A Balanced Outlook

The Bay Head and Mantoloking markets are trending toward greater balance in 2025. The median home sale price in Ocean County rose by 6% year-over-year in 2024, reflecting a continuation of strong interest in coastal communities like these.

Key Trends for 2025:

  • Spring and Summer Surge: Approximately 60-70% of home sales occur from March to August as families want to settle before school.

  • Luxury Market Strength: Mantoloking’s high-end market retains value, with homes featuring beach access or unique amenities selling at a premium.

  • Buyer's Market Indicators: Luxury home inventory remains higher than usual, giving buyers potential in negotiations.

4. What Buyers Need to Know

If you’re looking to buy in Bay Head or Mantoloking, 2025 is the year to prepare. With home prices climbing at a steady rate, locking in a favorable mortgage early could save significant costs. Focus on properties with:

  • Ocean or water views (adds up to 25% to property value).

  • Modern amenities, like open floor plans and outdoor spaces, remain highly desirable.

Buyer Tip: With the mix of vacation homes and year-round residences, think long-term when making a purchase. Are you looking for a seasonal retreat or a permanent home? Make a list of must-haves and consider future needs.


5. What Sellers Should Consider

For sellers, 2025 offers an opportunity to list in a market where demand remains high but competition is easing slightly. Ensure your home is in peak condition by investing in small upgrades like:

  • Fresh paint and curb appeal enhancements.

  • Modern appliances to attract discerning buyers.

Pricing Advice: According to Zillow, homes priced at or slightly below market value are 58% more likely to sell within 30 days. Work with a local expert to price competitively while maximizing your return.

Final Thoughts

The Bay Head and Mantoloking estate markets are poised for an exciting 2025. Whether you’re buying or selling, being prepared and informed is key.

At Team White Real Estate, we bring decades of local expertise to help you navigate these dynamic markets. Contact us today to make 2025 your best year yet in Bay Head and Mantoloking real estate.