South Jersey Market Sees Buyers Regain Negotiating Power as Inventory Rises

Written by:

Steve Marcinuk

Date:

11 Mar 2026

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The South Jersey real estate market is moving away from its extreme seller-driven phase, with buyers beginning to reclaim negotiating ground. After several years in which buyers routinely accepted unfavorable terms and shouldered extra costs just to secure a home, the balance is shifting back toward more conventional negotiations. This adjustment is most visible in Burlington, Gloucester, and Camden counties, where rising inventory and more cautious buyer behavior are changing how deals are made.

Matt Donnelly, an agent with Century 21 Alliance who has worked in the region since 2004, says the change is gradual but clear. “Buyers, whether they know it or not, are getting used to the idea that they do have more say and they can push back,” he explains. For the first time in years, buyers in South Jersey are no longer forced to accept every seller’s demand, and they’re using that leverage to negotiate on both price and terms.

A Return to Negotiations

During the height of the seller’s market, buyers had little choice but to accept whatever terms were offered. Key responsibilities that sellers once routinely handled — such as obtaining certificates of occupancy, making repairs, or addressing inspection concerns — were shifted onto buyers. Many transactions involved buyers waiving contingencies, taking on additional costs, or agreeing to “as is” sales, simply to win bidding wars.

Donnelly describes that period as one where buyers “were really working extra hard and taking a lot of medicine in terms of buying a house.” Most buyers were those who had to move, rather than discretionary purchasers, and they had to accept whatever pricing or terms sellers demanded.

Today, buyers are more willing to negotiate on contract details. Donnelly notes that when he enters negotiations expecting buyers to absorb certain responsibilities, he’s increasingly met with resistance. Buyers are questioning whether they should be responsible for costs that have traditionally fallen on the seller. “If you’re telling me it’s not my responsibility, then I’m not going just to offer it. Let’s see how it plays out,” he says, describing the new attitude among buyers.

The Rise of Sales

One trend shaping the market is the increase in what Donnelly calls “extra house” sales, transactions involving sellers who do not need to buy another home after selling. These are often small-scale investors or landlords who are choosing to cash out while prices remain elevated, rather than face the challenge of buying in a competitive market.

“If anybody who has been in the rental market has an inventory of rental properties, maybe they were going to hold onto them for 10 more years, but they’re saying, ‘Why would I wait if I can get really great money?’” Donnelly says. These sellers are motivated by current prices, not by personal housing needs.

This group also includes reluctant landlords, owners who entered the rental business hoping for steady income but found property management more burdensome than expected. Donnelly points to clients who aspired to be investors but are now eager to exit due to the demands of maintenance, tenant management, and regulatory changes. “The rental market is tough when you’re a landlord. You deal with all the same headaches you always have,” he adds.

Seller Pricing Strategies

Despite the slow return to a more balanced market, many South Jersey sellers continue to set listing prices based on last year’s peak conditions rather than current demand. Donnelly frequently encounters clients who ignore market data and professional advice, instead anchoring their expectations to outdated price points.

“I can’t tell you how many listing appointments I’ve been on in the last six months where I did a full workup, spent time analyzing data, and presenting evidence,” he says. “I’ll say, ‘I think the house is going to sell somewhere between $380,000 and $400,000,’ and they say, ‘Oh, great, thanks for that information. We’re going to list at $445,000.’”

This overpricing strategy tends to backfire, limiting the pool of potential buyers and causing homes to linger on the market. When properties sit without price adjustments, they develop a reputation as stale listings, making buyers even less likely to consider them. As Donnelly puts it, “By overpricing, you limit your pool of people to just one or two who really have to have that place, and then you’re stuck trying to force them into this square hole when you’ve got a round peg.”

Strategic Pricing

Instead of overpricing, Donnelly recommends listing homes slightly below the expected market value to attract more interest. By pricing just under where a seller hopes to land, he says, it’s possible to generate immediate attention and spark bidding wars.

“List just under where you want to be. Get people going, ‘Whoa, what is it? We’ve got to get over there right away.’ Then you have two, three, four, maybe five offers competing with each other,” he explains. This approach often results in multiple offers and can drive the final sale price above the initial listing. “Now people start fighting, and that price goes up, up, up,” Donnelly says.

Market Myths

A persistent misconception in the South Jersey market is that it’s nearly impossible for buyers to succeed due to high prices and intense competition. Donnelly says this belief is outdated. “I do hear ‘I can’t buy a house now,’ and I say, ‘Why?’ They say, ‘Oh, well, prices are too high, and competition is too stiff.’ That’s definitely not true.”

He points to his recent record as proof. In the past six months, he’s had four buyers go under contract, which would have been difficult during the peak of the seller’s market. The difference, he explains, is that successful buyers are prepared, realistic, and willing to act quickly when the right opportunity appears.

Inventory Trends

Looking ahead to spring 2026, Donnelly is watching for signs of increased inventory, which would further shift leverage toward buyers. Traditionally, the South Jersey market sees a wave of new listings in February, but this year that surge was notably absent. “I didn’t get the calls this year that I typically get in those first two weeks of February. Usually every year, I start getting phone calls from people I haven’t heard from in years saying, ‘Hey, come list my house.’”

Donnelly is especially focused on properties that have been on the market for three to four weeks. These homes, he says, are prime targets for negotiation, as sellers become more open to offers after the initial excitement wears off. “After that initial wave of listing, when they don’t get this huge line of people outside that they read about in the paper, they start to wonder,” he explains. “That puts my buyers and me in a really great position, negotiating-wise.”

A Balanced Market Ahead

The South Jersey housing market is moving away from the extreme seller-favorable conditions of the pandemic era. While sellers still benefit from relatively low inventory and strong pricing, buyers are regaining the ability to negotiate on both price and terms. Overpricing homes is increasingly risky, and strategic pricing that attracts competition is proving most effective.

As more properties come to market through 2026 — especially from investors and landlords who no longer want to hold their assets — both buyers and sellers will need to adjust their expectations. Sellers who cling to peak pricing risk missing qualified buyers, while buyers who prepare, stay realistic, and act decisively will be best positioned to secure homes as negotiating power rebalances. The market’s evolution signals a return to fundamentals, where preparation and pricing strategy matter more than ever.