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56 Park Street, Montclair
New Jersey 07042

Montclair Housing Inventory Consistently Low

Prices remain high despite rates.

We’re into a full year of lower Montclair housing inventory as 56 active listings in October was consistent with 55 in October last year. However, compared to October 2019 (above), we are well short of historical inventory levels with approximately half the active and trailing twelve month new listings. Low inventory and higher rates is stifling buyer traffic, but not entirely, while the lack of competition among sellers is keeping prices high.

Only 11 homes closed sales in October, well short of 24 last year. A lower sample can skew numbers, but among those sales closed in October, the median price was $1.3 million versus $687 thousand last year which was more in line with $655 thousand in 2019. This was due in no small part to houses priced between $800k and $1.2 million going an astonishing average of 42% over ask. Taking one month variability out, trailing twelve month average prices at the end of October were still up 10% over 2022.

What to expect for the remainder of the year. 

The market typically slows as we approach Thanksgiving and the holiday season, however, this can be an opportune time for buyers to find a motivated seller that needs to get on market for various reasons.

30 year mortgage rates are flirting near 8% for the first time since 2000, but the expectations are for lower rates in the remainder of the year and into 2024 as inflation indicators are lower. Rates under 7% in 2024 could get potential sellers to make their next purchase, freeing up the inventory logjam.

Questions about the local residential or commercial markets?

Contact me today.

Best, Rich