Stanton Company’s sale of 349 Crestmont Road in Cedar Grove in June 2023 set a new record for Essex County.

2023 Local Real Estate Year End Analysis

Record Low Inventory Contributes to Record High Prices

The 2023 Montclair Real Estate market wrap up is going to sound a lot like last year’s as sellers continued to sit tight, making for low inventory which helped buoy prices.

Average home prices in Montclair increased slightly to a new record $1,176,000 IN 2023, from $1,107,000 last year.

Montclair inventory continued to slump in 2023 and a mere 7 new listings in December did little to boost home choices.

While most surrounding towns also set new price records, Verona, Maplewood and Glen Ridge backed off from last year’s highs. I predicted that higher interest rates would put pressure on prices, but, to be honest, I would have expected a greater effect in lower priced towns, as buyers there tend to be more rate sensitive.

While all the towns have relatively short average days on market, check out Glen Ridge at 18. Buyers there better be working in concert with their agents to move quickly.

2024 Local Real Estate Outlook

I predict increased housing inventory in Essex County in 2024 which should further stabilize prices. Mortgage rates are expected to continue to decrease in 2024 after peaking in October 2023 as rate hikes to curb inflation proved effective.

Prospective sellers may move off the fence, taking advantage of lower rates to purchase their next home. At the same time, they can take advantage of the equity they have grown in their house to parlay into the next home.

Any combination of lower rates, price relief and more inventory would be welcome news for buyers. Hopefully we get a nice bump in new Montclair home listings in February and March like we did in 2022. However, pent up demand will result in continued competition for homes.

Questions about the local residential or commercial markets?

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Best, Rich