By Mike Lentz | The Mike Lentz Team – Keller Williams Realty
Mortgage rates are staying in the low 6% range, inventory is recovering but still below normal, and local prices are rising, not falling. Each of these gets treated as a crisis in national headlines. The local picture is calmer and more workable than social media suggests.
3 Housing Market Misconceptions in South Jersey
Housing market misconceptions in South Jersey usually start with a national headline and a buyer’s nerves. A recent CNBC study asked homebuyers what they worry about most. Three themes kept surfacing:
- Mortgage rates
- The number of homes for sale
- Home prices
A lot of what circulates on those topics is based on misconceptions rather than facts. Here is how each one looks against the data.
Misconception #1: “I’ll Just Wait, Mortgage Rates Are Going To Drop”
One idea making the rounds on social media is that mortgage rates are about to drop dramatically, so it is better to wait to buy.
That is not what forecasters expect. Mortgage rates have come down slightly in the last few weeks, but the most likely scenario is that rates hold in the low 6% range this year. That is not a meaningful change from where they sit right now.
As U.S. News explains:
“Mortgage rates aren’t expected to change much over the next several quarters . . .”
Even at current rates, affordability is already better than a year ago. Waiting for a dramatic rate cut that most forecasters do not see coming is not a strategy.
Misconception #2: “There Are Too Many Homes for Sale”
Inventory is up. The question is whether that should worry you or help you.
Locally, active inventory in Gloucester County was up 16.3% year-over-year in March 2026, with similar gains across Camden and Burlington counties. More homes on the market means buyers have more to choose from and less pressure to decide in 24 hours. That is a buyer-friendly change, not a warning sign.
What national headlines miss is context. Realtor.com data shows national inventory is still nearly 14% below the last normal housing market (2017-2019):
Only 9 states have more inventory than pre-pandemic. That is a key reason why there are not enough homes for sale nationally to trigger a 2008-style crash.
Understanding current market conditions helps you make better decisions when buying or selling.
Misconception #3: “Home Prices Are About To Crash”
Some national metros are seeing small price dips, and that has been rebranded as “prices are crashing” on social media. It is not accurate.
In our local market, prices moved the other way. Camden, Burlington, and Gloucester counties all posted year-over-year median price growth in March 2026, ranging from 2.0% to 4.3%. No declines, mild or otherwise. This is where housing market misconceptions in South Jersey diverge most sharply from the local data.
Three structural reasons prices are not headed for a crash, locally or nationally:
- Many homeowners locked in low mortgage rates years ago and have no incentive to sell, which keeps inventory growth in check.
- National inventory remains below pre-pandemic norms.
- Even in softer markets, sellers often pull listings off rather than cut prices.
Even in the national metros seeing mild declines, cumulative 5-year gains have far outpaced any recent dip:
That is price moderation after record-breaking years, not a crash. And in South Jersey specifically, it is not even moderation. Prices are still climbing.
Bottom Line
Housing market misconceptions in South Jersey tend to follow the same pattern: a national headline gets copied without anyone checking whether the local data actually matches. Rates are stable, inventory is recovering but not flooded, and local prices are up.
For a data-based read on what is actually happening in your price band and timeline, schedule a call with us and we will walk through the numbers together.
For the full picture in your county, see our March 2026 recaps for Camden, Burlington, Gloucester, Salem and Cumberland counties.
