Morris County Real Estate: Navigating Tax Pressures and Market Misconceptions

Written by:

Steve Marcinuk

Date:

17 Jun 2025

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“The market has really changed over the last few years. When that mansion tax was initially imposed, it really was the upper echelon of home sales in the area. Back in 2018, only 6% of New Jersey home sales were over a million dollars. Today, that number has increased to 16%.” shares Ryan Bruen, team leader of the top-performing Bruen Team at Coldwell Banker Realty, who has been tracking these trends closely.

New Jersey’s Growing Tax Burden on Real Estate

Perhaps the most pressing concern facing Morris County residents isn’t market volatility – it’s the state’s escalating tax burden on real estate transactions. New Jersey’s existing realty transfer fee and mansion tax structure, originally designed to target luxury purchases, now affects a significant portion of middle-market transactions.

This dramatic shift means that what was once considered luxury pricing has become increasingly mainstream in desirable Morris County communities. Yet the tax structure hasn’t adapted to this new reality.

The numbers tell a clear story about the rising cost of high-end real estate transactions. In many areas, homes priced over $1 million are already subject to a 1% mansion tax, which amounts to $10,000 on a $1 million purchase. Proposed legislation could further increase these costs by adding another 1% realty transfer fee on sales exceeding $1 million. For properties priced above $2 million, buyers may face an additional 2% transfer fee, significantly impacting the overall affordability and closing costs of luxury home purchases.

“You really cannot call a million-dollar house a mansion by any means anymore,” Bruen notes. “Not saying you can’t get a nice house for a million dollars, but nowhere near what I would consider a mansion.”

Market Reality vs. Media Narrative

While national headlines suggest shifting market dynamics, Bruen cautions against applying broad trends to the Morris County market. His recent analysis reveals a persistent disconnect between national reporting and local conditions.

“I’ve got some notifications this past week from some mortgage lenders, typically pretty reputable mortgage lenders, that give me weekly updates telling us that we are now in a buyer’s market. Guess what? They’re wrong,” Bruen states emphatically.

His assessment is backed by concrete local data. In the past week alone, homes in the region sold for an average of 3.9% above list price, with some areas like Randolph seeing homes sell for 10% over asking. The majority of properties continue to generate multiple offers and bidding wars.

“We are still very much in a seller’s market,” Bruen confirms. “Most of the houses I’m seeing are still going to bidding wars, still selling well above list price.”

By the Numbers: Current Market Snapshot

Recent market activity across Mendham, Chester, Bernardsville, Basking Ridge, and Randolph reveals strong momentum. A total of 63 new listings came to market, marking a 37% increase over the previous week. Morristown led the way with 14 new listings, followed closely by Basking Ridge with 11. The average list price across these communities was $1,320,000, reflecting continued demand in the higher-end market.

Sales activity remained robust, with 40 homes sold at an average sale price of $1,253,000. On average, properties sold for 3.9% above list price and spent just 21 days on the market. Most areas maintained premium pricing, with only two communities—Bernardsville and Basking Ridge—seeing homes sell below list price at -6.6% and -1.1% respectively. These figures suggest a market where buyers are still willing to pay a premium, particularly in competitive neighborhoods.

Expert Perspective on Market Conditions

Bruen’s analysis challenges common misconceptions about what constitutes a buyer’s versus seller’s market. His expertise, grounded in both his CPA background and multi-generational family experience in Morris County real estate, provides valuable context often missing from generic market reports.

“We were in such an extreme seller’s market for such a long time that some of us might be conditioned to think that if houses are sitting on the market for a few weeks, if they’re negotiating below list price, then that means it’s a buyer’s market. It does not,” he explains.

This nuanced understanding reflects the kind of local market intelligence that separates experienced professionals from those relying solely on regional or national data.

Looking Ahead

As Morris County residents enjoy the start of summer, Bruen emphasizes the importance of staying informed about both market conditions and policy developments. The proposed tax increases represent a significant threat to housing affordability in an already challenging market.

For homeowners considering a sale or buyers evaluating their options, Bruen’s message is clear: local expertise matters more than ever. Understanding the interplay between tax policy, market dynamics, and community-specific trends requires the kind of deep, data-driven analysis that has made the Bruen Team the #1 sales team in Coldwell Banker’s Morristown office for seven consecutive years.

The Bruen Team’s market analysis is based on MLS data and direct market observation. For specific guidance on buying or selling in Morris County, visit bruenrealestate.com or call 973.294.8887.