2024 Year End Wrap Up

Prices Continued Their Upward March

Average sale prices jumped sharply to $1.307 million in 2024 from last year’s record $1.176 million as price increases touched all parts of the market, not just the “moderately” priced homes.

It should come as no surprise then that the number of homes sold over $2million (we’ll call that the luxury segment) has risen dramatically, as we can see below. This makes sense if you consider that there were 26 homes sold between $1.5million and $2million in 2020, “waiting” to be pushed into the luxury category.

Despite a few dozen more new listings in 2024 than 2023, 368 vs 329, we are still well below traditional inventory levels and several metrics reflect the resulting sellers market.

Average days on market for the year hit a record low at 22 days with many houses listed on a Thursday and offers accepted the following Tuesday. Price premiums remained steady at 22% in 2024 despite higher asking prices. That means for all the houses going at or slightly over ask, some are going 50% or more over ask, as we’ve highlighted over the course of the year.

Essex County Results

Without exception, neighboring towns saw increased prices year over year. Additionally, sales premiums were at or near record levels across the board.

Price premiums in excess of 20% remained the exclusive domain of Montclair and Glen Ridge as we touched on in November.

Days on market were low among all towns ranging from a low of 19 in South Orange to a high of 30 (still relatively low!) in Bloomfield.

Looking Forward

What does 2025 have in store?

Prices are the usual big question. If we see any signs of price depreciation, we will see sellers trying to hit peak values, which will contribute to greater inventory and lower prices.

What will precipitate that first price pressure?

Lower rates, which no one predicts we’ll see in any appreciable level, or homeowners downsizing or relocating. Yes, current homeowners are handcuffed by low mortgage rates, but downsizers can take advantage of equity growth in their homes.

Reach out to me with any questions.

Best, Rich