How’s the Market? Your Q2 2026 Housing Update

One of the first things I hear from homeowners right now is: “How’s the market?” Q2 2026 brought some clear signals worth paying attention to, so here’s the full picture — national trends, what’s happening across New York and New Jersey, and a closer look at Orange, Rockland, Sussex, and Passaic counties.

The National Picture

Mortgage rates didn’t hold steady this quarter — the 30-year fixed climbed to 6.58% by July 23 and pushed further to 6.827% by July 29, driven largely by oil prices tied to renewed Middle East tension. That’s a meaningful move up from the mid-6% range we saw back in June.

Despite higher rates, home sales cooled only slightly month over month while staying up year over year: June existing-home sales dipped 2.4% from May but were still 2.8% higher than a year ago. Prices kept climbing too, with the median existing-home price hitting $440,600 in June — up 1.8% year over year and marking the 36th straight month of gains.

The bright spots: inventory grew slightly (though it’s still historically tight), and affordability actually improved, with NAR’s affordability index rising to 102.3 from 95.5 a year ago. And once again, the Northeast stood out as the outlier region — tighter supply, firmer prices, and the only region to post month-over-month sales growth in June.

Our Local Markets: Orange, Rockland, Sussex & Passaic

Here’s where it gets interesting for those of us in the New York/New Jersey border counties.

Homes are moving faster everywhere. Days on market fell in every single county, every single month of the quarter:

• Orange: 58 → 54 → 38 days
• Rockland: 43 → 27 → 28 days
• Sussex: 23 → 20 → 17 days
• Passaic: 22 → 21 → 17 days

All four counties ended the quarter moving faster than they started it.

Inventory rose, but New Jersey stayed the tightest. Every county saw more supply come online through Q2, but Sussex and Passaic never crossed 3.1 months of inventory — keeping conditions competitive. Orange, meanwhile, climbed closer to balanced-market territory at 4.95 months.

Sellers kept the upper hand almost everywhere. Sold-to-list ratios stayed above 100% in nearly every market all quarter. Passaic climbed every single month and ended as the region’s strongest seller’s market at 106.1%. Rockland crossed above 100% in May and held it through June. Sussex stayed above 102% the entire quarter. Orange was the outlier, dipping just under 100% in April and May before crossing back over in June.

Rockland remained the region’s premium market, while Passaic edged out the rest on overall competitiveness — both by sold-to-list ratio and by tying Sussex for the fastest close time (17 days) in June.

Month-by-Month Highlights

• April: Orange stayed the most balanced market, but inventory was climbing and homes were taking longer to sell. Rockland’s median price dropped nearly 10% month over month. Sussex was the hottest market in the footprint, with multiple offers and waived contingencies common.
• May: Orange posted its largest price increase of the quarter, up 16.82%. Rockland became the fastest-moving NY market, with homes selling in 27 days and buyers regularly paying above asking. Passaic led the region in competitiveness.
• June: Orange showed its first real signs of settling, with days on market dropping nearly 30% even as inventory continued to build. Rockland tightened rather than loosened, making it the strongest seller’s market among the four. Sussex and Passaic both closed the quarter as the fastest-moving markets in the footprint, each at 17 days, with Passaic posting the highest sold-to-list ratio of the entire quarter at 106.1%.

Looking Ahead to Q3 2026

The U.S. housing market enters Q3 2026 in a period of gradual stabilization. Home price growth is slowing to low single digits, mortgage rates are holding near 6.5%, and inventory is improving — though still below pre-pandemic norms. Sales are rising modestly, affordability is slowly recovering as income growth catches up, and the market is shifting toward greater balance between buyers and sellers.

What This Means for You

Inventory remains a factor in our local markets. If you’ve been thinking about your home’s current value, or wondering whether now is the right time to make a move, I’m happy to sit down and walk through what the data means for your specific situation.

As always, I’m here as a resource — whether you need a contractor referral, a lender connection, or a straightforward answer to a real estate question.

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Each month, my team also produces a 15 to 20 minute Housing Market Update video to help homeowners stay informed. You can find the latest one at hmupdate.com.

Ruth Inoa-Wehrman, Real Estate Advisor Better Homes and Gardens RE Green Team 130 Skyline Dr, Ringwood, NJ 07456 | 973.477.4327 | ruth@ruthrealestate.com

Sources: NAR’s June 2026 report (July 9), Freddie Mac PMMS (July 23 and 29), Realtor.com Monthly Housing Trends Report (June 2026), Cotality Home Price Insights (July 2026), Calculated Risk Housing Market Overview (mid-July 2026), RPR® Local Market Data, Fannie Mae April 2026 Housing Forecast, MBA Mortgage Finance Forecast (June 2026), HousingWire Housing Market Tracker (June 26, 2026), Harvard Joint Center for Housing Studies 2026 State of the Nation’s Housing.