How Inventory Shortages Are Keeping Bergen County Prices Climbing

Northern Valley Real Estate Update: Why Low Inventory Keeps Prices High

If you've been following the Northern Valley real estate market—especially in towns like Demarest, Tenafly, Closter, and Haworth—you’ve probably noticed a recurring theme: a major lack of inventory.

And if you haven’t heard yet, let me be the first to tell you: We are still very much in a seller’s market.

Crestgill Approaching a Balanced Market—But It’s the Exception

Right now, Crestgill is the only town coming close to a “balanced market,” with 3.77 months of inventory. A balanced market is typically around 4 to 6 months of inventory, where buyer and seller leverage are relatively equal.

But here’s the catch—every other town in our local area is well below that, meaning the market heavily favors sellers. Take a look:

Haworth: Low inventory

Closter: Strong seller’s market

Demarest: Only 2 months of supply

Tenafly: Continues to benefit sellers

This lack of homes on the market means strong competition for buyers and continued price strength for sellers.

Deep Dive: What’s Happening in Demarest?

Let’s zoom in on Demarest, where inventory levels have fluctuated, but demand has remained consistent.

Current Months of Supply: 2 months

Monthly Change: +92% (a sharp jump, but driven by extremely low numbers previously)

12-Month Change: -6.6%

Back in May 2024, Demarest had about 4 months of inventory, and that number has dropped significantly since—reflecting ongoing buyer demand and low home availability.

What’s Driving Prices Right Now?

There’s been a lot of buzz about interest rates, tariffs, and even national housing policies—but what we’re seeing on the ground tells a clearer story:

Interest rates around 6–7% are influencing both buyers and sellers.

Sellers who locked in a 3% mortgage are understandably reluctant to sell, which limits available inventory.

Buyer activity remains strong—even with higher borrowing costs.

What does this mean? As long as demand stays steady and inventory remains low, prices will stay strong or continue to rise.

The Local Reality: This Isn't a National Trend

Don’t be swayed by national headlines talking about rising inventory and cooling markets. That’s not the reality here in Bergen County.

We’re seeing open houses with 30+ people in attendance, multiple offers, and bidding wars. And remember—only one person gets the house. That leaves dozens of buyers still in the market, eager for the next opportunity.

Advice for Sellers: Maximize Your Home’s Value

If you’re thinking about selling in Demarest, Tenafly, Closter, or anywhere in Northern Valley, now is an excellent time—but strategy matters.

Here’s what I tell my clients:

Some improvements pay off—some don’t. Let’s talk before you spend.

Prepping your home strategically helps you stand out and attract top-dollar offers.

Get ahead of the market—those who do are selling faster and for more.

Final Thoughts

As we continue into the spring and summer selling seasons, I’ll keep you updated on market shifts. But for now, the formula is clear: low inventory + steady buyer demand = strong pricing.

If you’re considering selling or just want to plan ahead, I’d love to schedule a complimentary strategy session with you. Let’s talk about your goals, the current market conditions, and how to position your home for success.