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Stanton’s Sellers’ Tips

Will Sellers Soon Be Getting Off the Fence?

Montclair, NJ residential real estate buyers continued to face low inventory during the month of January and competition among active listings was intense.

Only 15 houses came on the market versus 25 in January last year, making for 24 active listings versus 42 last year.

Anecdotally, listings at $579,000 and $1.3 million both received approximately 20 offers each. The $579k home, located in a busy, but convenient Montclair location, was a fixer upper and attracted mostly cash backed investors.

Only 8 sales closed in January, the lowest number since February 2016. Average closed prices were 19% over asking price, versus 22% over the past 12 months and days on market was 39 days versus 25.

While this may seem like the sellers market is abating, results for January tend to reflect sales of “residual inventory” from year end. January 2023 saw 12 sales at a 14% price premium and 34 days on market.

The interest rate outlook is for general stability in 2024. While rates are expected to come down moderately, it looks like mortgage rates will be 6% plus for at least the next year. Sellers seem to be resigning themselves to the fact that their next home will carry a higher rate if financed, and this should spur some movement, whether they are moving for lifestyle or economic reasons.

Despite tight inventory, we continue to find homes for buyers in Suburban Essex County and help put together winning offers.

As always, reach out with any questions and forward this to anyone that might be interested in the local real estate market.

Best, Rich