When compiling the numbers for Demarest, the conclusion can be summarized in two lines: home prices remain strong, and you should be cautious about trusting rental statistics.

Let me clarify the reference point. The sales statistics for transactions completed in October have not yet been released. Therefore, home prices are based on data up to September, rents are for October, and listings are as of November 3.

According to Zillow, the typical home price in Demarest as of September 30 is $1,541,626, which is an 18.6% increase from a year ago.

This is not the actual sale price but rather a calculated value based on a model. In simpler terms, think of it as the estimated value of a home that is around the median for the neighborhood.

From the same data, Bergen County's median home price is $780,357, while the overall median for New Jersey is $575,123. This means Demarest is just shy of double the county's median.

The picture looks a bit different when looking at the actual recorded transactions from TopHap. The median sale price up to June is $1,721,667, with a growth rate of 11.1%.

MLS data tells a different story. According to Madison Adams, 68 single-family homes have sold in the last 12 months, with an average sale price of $1,922,195.

This average is a geometric mean. If that term is unfamiliar, think of it as an average calculated to minimize the influence of a few extremely high-priced homes.

Why is there such a discrepancy in the same neighborhood? The answer lies in the volume of transactions. Selling 68 homes in a year means less than six sales per month.

Data from Redfin shows an even clearer difference. The median price in January was $1,775,000, but by May, it had jumped to $3,387,500.

It's unlikely that home prices doubled in just four months. What changed was which homes were sold during that time. That's why I tend to avoid looking at the monthly median for this neighborhood.

When compared side by side with the neighboring town of Closter, the differences in location become clearer. Using the same data, Closter had 90 sales over the past 12 months, with an average price of $1,291,838. This results in a difference of $630,357 compared to Demarest.

Currently, there are 17 single-family homes listed in Demarest, with prices ranging from $799,000 to $5,595,000. Closter has 24 listings, priced from $599,000 to $3,995,000.

There are also five townhouse listings in Demarest, priced between $2,285,000 and $2,395,000. I was surprised to find that townhouses were not as cheap as I expected.

Let's broaden the scope to the county level. The Bergen County report from the New Jersey Association of Realtors for August is the latest I've checked. The median price for single-family homes is $925,000, which is a 5.1% increase, while the number of transactions decreased by 5.2% to 548.

The actual sale price compared to the asking price is 104.1%, and the inventory stands at 2.4 months. An inventory of 2.4 months means that if no new listings come on the market, all homes would sell in 2.4 months. It's still a seller's market.

However, the September data for the Greater Bergen area shows some cooling signs. The inventory of single-family homes increased by 9.8% to 1,052, and the days on market increased from 30 to 34 days. The median price rose only slightly to $825,000, a 0.6% increase.

This area has different boundaries than the county, so you shouldn't directly compare it to the August numbers. Just keep the direction in mind.

The primary reason for the cooling trend is likely interest rates. The Federal Reserve raised the benchmark interest rate on September 16, and by the end of September, the 30-year fixed mortgage rate exceeded 7%. The average as of October 29 from Freddie Mac is 7.24%, compared to 6.17% a year ago.

If you were to borrow $1 million for 30 years, I did a simple calculation with these two rates. The monthly principal and interest payment would increase from $6,105 to $6,815, an increase of $710. This is based on national average rates, so actual conditions for jumbo loans may vary.

Now, let's talk about rents. The average rent in October according to Zumper is $3,510, which is down 55% from a year ago and 8% from the previous month.

Don't be too quick to celebrate the halving of rents. Zumper reported an average of $7,000 in May. It seems that the average fluctuates depending on how many single-family homes are included, and Zumper noted that the data is limited.

So, it's better to look at the types separately. Apartments average $2,900, condos $2,850, and single-family homes $5,500. Based on the number of bedrooms, a 1-bedroom averages $2,490, a 3-bedroom $4,300, and a 4-bedroom $5,500.

Why is the sample size so small? Out of a total of 1,746 households, 1,701 are single-family homes, and there are only 45 apartments. According to the 2023 census estimate, the homeownership rate is as high as 89.7%.

There are also only two rental listings on MLS, priced between $5,500 and $11,000. Closter has nine listings, ranging from $2,495 to $6,200. It's realistic to consider both towns when looking to rent.

Let's also look at taxes. The general tax rate for 2025 is 1.805% for Demarest and 2.072% for Closter, with effective tax rates of 1.924% and 2.017%, respectively.

The effective tax rate is adjusted to compare between towns, so it can't be used for actual tax bill calculations. For the actual taxes on a property of interest, check with the borough's tax department or listing information.

If you're a buyer, I would recommend selecting a few recent transactions of similar size and similar streets rather than relying on averages. Since interest rates can change monthly, it's also wise to get loan estimates.

If you're a seller, I wouldn't overlook the trend of increasing inventory that began in September. If you only focus on the 18.6% figure, you might find your listing lingering on the market.

Loan conditions and taxes vary by property, so be sure to confirm with lenders and tax professionals before making a decision. Once the October finalized figures are released, it will be worth comparing them to the current numbers.