Al’s August Market Watch

August, 2025

During the first half of 2025, Bridgewater saw 305 new listings. This compares to the first half of 2024 with 283 new listings. A 7 percent increase and one that hopefully shows an opening up of the Bridgewater market. Interest ing, even though more homes were available, sales were actually down slightly, going from 196 in the first half of 2024 to 194 in the first half of this year. This could be a reaction to the ever increasing prices of homes and the non-decreasing mortgage rates, making affordability a high hurdle for home buyers.

On the positive side, for sellers, home prices have increased significantly from 2024 to 2025. The average home in Bridgewater during the first half of this year jumped from $687,575 in 2024 to $736,339, a 7.1 percent increase, although down from 10.6 percent during the first quarter of 2024 and 2025 Of course, some of that increase has to do with the amount of homes sold in different bedroom sizes, but it still indicates that homes are still appreciating.

All bedroom sizes showed price increases. Two bedroom homes jumped from $410,516 to $458,728, a 11.7 per cent increase. Three bedroom homes during the first half of 2025 sold at $626,564 versus $539,122 a year prior, a huge 16.2 percent increase. Prices for four bedroom homes increased from $806,509 in 2024 to $856,861, a modest 6.2 percent rise. However, the median price was $880,000 indicating a number of homes were sold below the average price. Five plus bedroom homes showed a 11.7 percent increase, going from $1,054,042 during the first half 2024 to $1,173,635 this year.

The average selling price to listing price remained constant remaining at 104 percent between the two periods.
Days on market decreased slightly, going from 28 days during the first half of 2024 to 26 days in 2025.

Huge Change In The Mansion Tax

As discussed in a prior issue of Market Watch, the Governor proposed changes in the Mansion Tax which is applied to homes sold valued at over $1 million. At the time, the tax equaled 1 percent of sold value, and paid by the buyer. The proposal called for a doubling of the tax to 2 percent of homes sold over $1 million and triple to 3 per cent on homes sold over $3 million.

Starting on July 10, the tax structure did change, and the responsibility shifted entirely to the seller. The buyer will no longer be responsible for paying any of this particular tax. Please note that the below rates are a major shift from the original proposal.

One percent on sales from $1 million to $2 million; 2 percent on $2 million to $2.5 million; 2.5 percent on $2.5 million to $3 million; 3 percent from $3 million to $3.5 million; and 3.5 percent above $3.5 million.

Granted, not many homes in Bradley Gardens currently sell above $1 million. But there are some that are, and others that will be over the next couple of years; especially if mortgage rates decrease, spurring more demand, competitive situations and higher offers. It will be interesting to see whether sellers then include this tax into their asking price, in reality placing the burden back on the buyers.