Absorption is a general barometer of how fast new listings are sold. For example, in Montclair, for every house that went under contract, 1.32 that came on the market. (That may not equate to growth of inventory as some listings expire or are withdrawn)  

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Low inventory was the name of the game in Montclair in 2014, especially in the most robust part of the market, the $500k – $800k range. Did that translate into higher prices year over year in this segment? This is hard to evidence as changes in average sale prices are dependent on the particular mix of homes for sale.

Anecdotally however, I would say prices have begun to stabilize, increasing about 5% versus greater gains in 2012 and 2013.

Montclair and Glen Ridge saw the largest sale price premium over ask, which is indicative of multiple offer situations. Any multiple offer scenario can result in a buyer knowingly offering well above the “value” of the house, to the seller’s benefit.

The upper end of Montclair’s market was slow in 2014. Only 17 houses over $1.2 million sold in 2014 in versus 29 in 2013, while 16 houses in that price range went unsold (withdrawn or expired) during 2014. No houses sold over $2 million in 2014. I think high taxes have, and will continue to, hurt the premium market in Montclair despite our housing stock being relatively “cheap” versus surrounding urban areas. (The average Manhattan apartment has reached record levels. Story here)

In other Essex County towns, Millburn continues to be an outlier in price. Lower taxes, top rated schools and a lack of inexpensive housing stock all contribute. Summit was the only other “peer” town I could find with average sales in excess of $1million.

Maplewood remains popular (101% SP/LP), but the low inventory sends a lot of frustrated buyers to Montclair.

West Orange and Bloomfield stand out as having growing inventory issues, while Essex Fells has too little volume to draw many firm conclusions.

Do you have specific questions on the market?

Feel free to contact me directly to discuss.

Best, Rich