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Paltry Montclair Housing Inventory Continues…

Prices Remain High as a Result

New listings dipped to 8 in August, underperforming 10 from last year. The new inventory trajectory has been mirroring 2025 with surprising consistency. Indeed, the past 5 years have been quite similar, above and beyond the expected seasonal trends, with the exception of a notable divergence between 12 months ended Aug ’23 and Aug ’22.

Low Supply = High Prices

Median sale prices have regularly been over the $1.2 mil mark over the past 2 years among homes closing in Spring/Summer, but trending downward over the past several months following an April peak. Are buyers seeing prices soften in the future? It’s hard to say without comparing same house sales, but we have seen fewer offers on homes. Multiple offers still, but fewer participants.

Price premiums are evidence of multiple offer scenarios and, while closings close to ask were the most frequent, the majority of homes closed 20-50% over ask, with one home closing 61% over ask; $1.45 mil close vs $899k price. Yes, this was priced well below market, but it’s evidence that the market price prevails over ask.

The “hottest” price band in August with an average of 32% over ask where those homes that closed in the $1.4 mil – $2.1 mil price band, which, working backwards, translates into asks in the $1 mil to $1.5 range.

Bottom line for buyers and sellers

For sellers: The data continues to support a favorable environment, particularly for well-priced, desirable homes. With listing volume essentially flat and prices generally higher, sellers continue to benefit from limited competition for quality properties.

For buyers: The market remains challenging because the supply pipeline has not materially improved. Buyers have somewhat more listings in certain months, but there has not been the sustained increase in inventory that would typically create significant negotiating leverage.

Reach out to me with questions about the local or regional market, investment possibilities, or your home in particular.

I always welcome comments and questions.

We are here to help.

Best, Rich