Luxury Homes Are Flying Off the Market While Starter Homes Sit in Monmouth County

Written by:

Alejandra Rodriguez

Date:

10 Apr 2026

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Contrary to expectations, Monmouth County’s real estate market is seeing high-end homes sell at a rapid pace while entry-level properties linger. Million-dollar listings are attracting bidding wars and closing above asking price, while starter homes are taking longer to sell and often require price reductions to move.

For buyers at the top of the market, competition is intense, and quick decisions are necessary. For those shopping for their first home, there’s more time to negotiate and less pressure to rush.

Luxury Market: Intense Demand and Rapid Sales

Amanda Cruz, a Team Lead at The Amanda Cruz Group of Signature Realty in Red Bank, has seen luxury buyers routinely offer well over asking price — and sometimes still lose out. This quarter, several of her listings received offers close to $200,000 above list price within days. These scenarios are now common for well-priced luxury homes in the area, which often draw multiple offers during the first weekend on the market.

Several factors are fueling this demand for high-end properties. First, luxury buyers are less affected by rising interest rates. According to Cruz, most buyers in this segment have high incomes or substantial cash reserves, so a six percent mortgage rate is “annoying but not disqualifying.” The difference in monthly payments doesn’t deter them from moving forward.

Another driver is the arrival of Netflix, which is building a major production studio nearby. The project is bringing in executives, celebrities, and technical staff who need upscale housing quickly. Some luxury homes are also being considered as filming locations, adding another layer of demand from the entertainment industry.

Monmouth County’s appeal to New York City professionals is also a major factor. Many buyers are leaving Manhattan apartments in search of more space, private yards, and amenities like pools. Towns such as Belford and Atlantic Highlands offer ferry access to Lower Manhattan, making the area attractive for remote and hybrid workers who still need to commute occasionally.

Additionally, local demand remains strong as baby boomers downsize from large family homes but choose to stay in the area. Instead of leaving Monmouth County, many are moving into smaller luxury condos or high-end properties, keeping competition high at the top end of the market.

Starter Homes

At the entry level, the story is different. Many first-time buyers who could afford a home when mortgage rates were three percent are now stretched thin at current rates. Higher monthly payments leave less room for repairs or upgrades, and buyers are more cautious about taking on extra costs.

Cruz notes that buyers in this segment are “more demanding and pickier than they were a few years ago.” Issues that buyers once ignored can now derail a deal. Inspection reports carry more weight, and requests for repairs or credits are standard.

Some sellers of starter homes are still anchoring their prices to 2021 or 2022, hoping for bidding wars that aren’t materializing. When homes sit on the market too long, they become less attractive, leading to price cuts and prolonged selling times.

Real-World Examples

Recent sales illustrate the contrast. Last month, a waterfront luxury home listed at a premium price received three offers above asking within its first weekend. The winning bid came from a New York buyer willing to pay nearly $200,000 over list for a fast closing.

In contrast, a well-maintained starter home in a nearby town, priced competitively, sat for three weeks with limited interest. When an offer finally arrived, it was below the asking price and included requests that the seller cover closing costs and address multiple repairs. The seller, expecting a bidding war, had to lower expectations and negotiate.

For Buyers and Sellers

For luxury buyers, acting quickly is essential. The market rewards decisive action and strong initial offers. Get pre-approved, know your budget, and submit your best offer upfront. Waiting even a day or two can mean losing out to a faster buyer.

Starter-home buyers, on the other hand, can use the slower pace to their advantage. Take time to tour several properties, negotiate for repairs or closing cost credits, and don’t feel pressured to waive contingencies. Sellers are more flexible now than during the pandemic boom.

Luxury home sellers should price their homes competitively and focus on presentation. Highlight unique features and be ready for quick offers, but don’t underprice — demand is strong enough to support premium pricing for quality listings.

For entry-level sellers, aggressive pricing is key. Overpricing will result in longer market times and eventual price reductions. Consider offering upfront repair credits to attract cautious buyers and maintain momentum.

Why This Market Matters

Monmouth County’s current market defies conventional wisdom. Instead of pulling back due to high interest rates, luxury buyers are driving rapid sales and escalating prices at the top. Meanwhile, starter homes face more scrutiny and slower movement as affordability challenges and higher mortgage rates reshape buyer behavior.

“The buyer demand still exceeds the listings that we have,” Cruz says, but that demand is focused on the higher end. Understanding which segment you’re in — and how it’s performing — can help buyers and sellers set realistic expectations and strategies.

About the Expert: Amanda Cruz is a Realtor and team lead with Signature Realty in Red Bank, New Jersey, specializing in waterfront luxury and new construction properties in Monmouth County.

This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.