2025 Year End Wrap Up

Prices Remain High on Low Inventory and predictions for 2026.

Price appreciation in Montclair real estate continued in 2025 as average price for the year climbed to $1.419 million from $1.307 million in 2024 as homes generally appreciated in price, while the number of high end homes jumped appreciably (see below).

New listings increased slightly in 2025, which would be good news for buyers, yet the number of closings decreased a bit to 290 in ‘25 from 296 in ‘24 (some new listings expire or are withdrawn and re-listed). All other metrics were relatively unchanged.

The appetite for expensive homes in Montclair was evident in the jump in the number of homes sold in excess of $2 million with 52 sold between $2 and $3 million, up significantly from 31 last year, while sales in excess of $3 million rose to 10 from 7.

Don’t forget there is a new graduated Supplemental Realty Transfer Fee, so those sellers are paying between 2%-3.5% in fees to the State.

Average Price Increases Not Universal 

Neighboring towns all experienced average price increases in 2024, but that trend ended with slight decreases in South Orange, Cedar Grove, & Nutley. Averages represent the current mix of homes for sale, so aren’t an exact indicator of year over year home value, but it is a pretty good trend indicator and it’s significant that 3 towns saw prices level off. 

Huge Price Premiums Continue to Be Unique to Montclair and Glen Ridge

As you can see below, huge price premiums of 20% + remain exclusive to Montclair and Glen Ridge.

As I’ve said before, this certainly is reflective of high demand, but also a construct of hyperlocal pricing strategy. Montclair premiums did retreat to 20% from 22% and I would expect that trend to continue as asking prices align with expectations.  

Expectations for 2026

We expect inventory to build starting mid January with large gains in February and March. We also expect homeowners to take advantage of growing equity in their homes and ‘cash out’ with proceeds going to downsize houses or retiring other debt.

The specific mindset for empty nesters remains “where do we go?” Don’t worry, I’ll find you a place! Municipal budget woes and a looming reassessment in 2027 (A higher assessment DOES NOT mean higher taxes, it just means uncertainty. Ask me how this works) could encourage potential sellers as well.

If you have questions about the market, a town we didn’t cover, or anything real estate related, please reach out.

We are here to help.

Best, Rich