Just Listed!
10 Linden Ave & 12 Linden Ave
Montclair, NJ

Good things come in twos.
2 Multi Families – 2 Units each – 2 BR 1bth Apartments

Fall Real Estate Off To A Good Start

Local News and Market Trends to Watch

Happy Autumn! Here are a few trends that are influencing the Montclair and surrounding markets as we move into the final quarter of 2024.

Inventory

Montclair real estate inventory typically improves in the fall and this September was no different, as homes continue to sell quickly. 37 new listings bumped active listings up to 61, the highest level since June, and up from 44 in August and 43 last September.

Average Days on Market

The local average days on market was 20 among the 25 houses under contract in September, down from 25 in August as a good number of new listings had offers in the first week. This is down slightly from 22 days in September last year and down quite a bit from 36 days among the 19 homes closed in September, as higher priced homes and condos, which tend to remain on the market longer, brought up the average last month.

Among the 19 closings in September, prices averaged 13% over ask, down from 20% last year, 28% in August, and 22% in the trailing 12 months. Again, the mix of higher priced homes and condos will lower the price premiums. Also, asking prices has been moving up to align with market prices.

3rd Quarter Outlook

Interest rates just bumped up on strong economic indicators. Combined with the upcoming election, buyers and sellers may sideline themselves this quarter. These home shoppers and sellers don’t disappear though, so look to Spring for any deferred market activity.

Sale Prices in the First 3 Quarters Averaged Twice Assessed Value

The assessed value among 217 sales to date this year were 48.4% of sale price. In short, prices have doubled since 2017. While that seems like a lot, and daunting for buyers, that’s about a 10% return. Compare that to returns of slightly more than 10% for the S&P 500 historically and about 15% over the last 5 years. Subtract a little over 3% a year in taxes and home sellers aren’t really getting rich at buyers’ expense.

Question – “I paid 2x my assessment – will my taxes double?”

Tax assessments in NJ do not reset upon a sale. They change upon a town wide reassessment (max every 10 yr per state law), a tax appeal, or upon making improvements requiring permits to your home. The current equalization rate for Montclair is 66.7%. What’s that you ask? It’s what the county considers the assessed value of all real estate vs market value. So, the county assessor is a little behind the times, which is fine as long as everyone is on equal footing when the town is next reassessed; slated for 2027-2028.

Thanks for reading.

Best, Rich