Is the South Jersey Housing Market Going To Crash? Here’s What Experts Say
Worried about those headlines claiming a housing crash is coming to Camden County? Let’s cut through the noise with something more valuable – real data.
The numbers don’t point to a crash in Cherry Hill or anywhere else in South Jersey. They show steady, continued growth.
Home values vary across our region. Washington Township might see prices rise more than Pennsville. Some areas could even see small, short-term dips. But here’s the deal: South Jersey home prices are expected to rise, not fall, over the next 5 years.
The Real Story Is in the Expert Forecasts
In the Home Price Expectations Survey (HPES) from Fannie Mae, over 100 housing market experts weigh in quarterly on where home prices are heading. The latest report shows prices climbing nationally through at least 2029 (see graph below):
Each bar in this graph shows an increase, not a loss. The pace of appreciation just varies year to year.
Here’s what’s more: Let’s look at another view of price forecasts. This version breaks expert predictions into 3 categories: the overall average, the most optimistic projections, and the most pessimistic projections (see chart below):
Even the pessimists project a nearly 5% price increase over the next few years.
- Overall, prices are expected to rise about 15% from now through 2029.
- Optimists predict a roughly 26% increase.
- Even pessimists anticipate a 5% rise during that period.
The surprising truth? None of these market experts forecast a crash or even a decline over the next 5 years.
How This Compares to “Normal” for South Jersey
Look back at the first graph. The projections call for 2-3.5% price increases in each of the next five years. For context, the 25-year average has been closer to 4-5% annually.
This is slightly below the historical average but much more sustainable than what we saw in 2020-2022.
During those years, many Moorestown homes saw prices jump 15-20% due to record-low supply and sky-high demand.
Bottom line? While it might feel like prices are stalling compared to those pandemic surges, the South Jersey market is finally finding its balance again.
Why South Jersey Prices Aren’t Expected To Crash
The buzz about falling home prices stems from that rapid rise and the old saying: what goes up must come down. But with homes, that’s rarely true. Prices almost always rise long-term.
The main reason we’re not heading for another 2008 is simple: supply and demand.
Even with affordability challenges making it harder for some Gloucester County buyers to enter the market, we still don’t have enough homes for everyone who wants one. This ongoing shortage keeps pushing prices up across the region.
That’s why experts agree: We’re not headed for a price collapse in South Jersey, but for steady, long-term appreciation.
And if economic concerns have you worried, remember this: Over the past 50 years, countless economic events have impacted the market. But one consistent truth is the housing market always recovers. We’re turning that corner now and entering recovery.
For more on this topic, check out our guide on whether it’s a buyer’s or seller’s market.
Bottom Line
If you’ve been waiting to buy or sell in South Jersey because of crash fears, it’s time to look at data, not headlines.
The question isn’t if local home prices will rise, it’s by how much.
Let’s connect so you know what’s happening in our local market and what these forecasts mean for your next move.
