Here are a few specific insights based on the trends and statistics of the summer Montclair real estate market.
My team and I always strive to guide you in recognizing value and finding hidden gems.
1. Many Buyers, Little Inventory
As we have seen throughout the past few quarters, demand has consistently outstripped supply. While the frequency of new listings coming on the market has slowed, the local results from June show that strong buyer traffic continues and multiple offers are the norm.
2. Average Sales Prices Increasing
61 homes went under contract in June, dropping available inventory to 180 units at month’s end vs 194 at the same time last year and 207 at the end of May. Spring sales are beginning to close and we can see the results of competitive bidding with average June sales prices 5% above original list prices, levels we haven’t seen since 2006.
3. Montclair Home Prices Look Sustainable
This is hard to pin down, because of the multitude of factors that come into play. Montclair real estate prices appear sustainable now largely because homes in Montclair are still “cheap” compared to Summit, Chatham, Millburn, and Essex Fells, which have median list prices of $1.2 million, $1.1 million, $1.5 million and $1.5 million respectively, versus $693k in Montclair. This is tempered somewhat by higher taxes in Montclair. Glen Ridge and Maplewood represent cheaper options too at $592k and $494k median prices, but inventory is in very short supply there with only 37 and 67 units available for sale.
Interest rates are at historic lows and have played a part in higher prices. People have been bracing for higher rates for years and they haven’t materialized as of yet. However, increases are inevitable, which could slow the market somewhat, although we are seeing more purchases with higher down payments, mitigating the impact of rate hikes.
Weaker prices in urban areas could negatively impact demand here. Demand here depends on the spillover from the very expensive NYC market, and there are signs of the torrid market slowing there. The average sale price in Manhattan retreated 6% from the $2.12 million high-water mark it achieved in the First Quarter. 14% fewer sales closed and 20% fewer contracts were signed in the Second Quarter of 2016 than in the same quarter a year ago. (source: The Corcoran Report)
So what do I do?
Sellers
If you have been thinking of selling your house, with strong demand and low rates right now, it could be a uniquely ideal time to sell.
> Contact me to discuss specific insights about your property and what to expect.
Buyers
Don’t be discouraged by the current market!
Forgo the “turn-key” homes and focus on floor plan and location!
Be persistent in working with a professional to stay ahead of the market!
> Contact me to review your needs and create a strategy to find something in this market you would love.
Best, Rich
