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North Caldwell, NJ 07006

Inventory Growing, But Not Enough

Record Low Days on Market

Inventory in the Montclair Real Estate market grew in March, but very little as it is tracking the anemic housing availability of 2023.

• 37 new listings came to market in March, the same as last year, which significantly trails the 50+ listings in each of the prior 3 years.
• 49 listings were active in March, down from 57 last year, putting sellers firmly in the driver seat which was evidenced in sales data.

Amount of Days on Market Shrunk for Sold and Under Contract Listings

Among the 29 homes that went into contract in March (also unchanged from last year), the average days on market was a speedy 13 days.

The pattern of new listings to start with a broker open house on a Thursday, a public open house on that Sunday, with offers due the following Wednesday was all too familiar over the course of the month.

13 days is the shortest sales cycle on record, well ahead of the trailing 12 month average of 23.

Sales Price Premiums

The sales price premium reflected the state of low inventory. 16 homes closed an average of 24% over ask in March, versus 20% last year and 23% over the trailing 12 months.

A house priced at $979k racked up a 44% premium, while a home priced at $1.4 million commanded a 58% premium, closing at $2.2 million. This same home closed in fall of ‘22 for $1.35 million. Some cosmetic updates and a new primary bath had been done.

Prices have remained lofty with a median ask price of $989k among houses going under contract in March, and $1,099,000 among active listings.

When did Montclair become a “million dollar town”?

• We first saw median prices over $1 million in April 2022.

Can you buy a house at or below asking price?

• It’s not impossible; 6 houses out of 40 closed this year went for below ask.

Tips for Buyers in the market now:

• Align yourself with an agent that knows the local market well and knows what your downside exposure is if you are ready to put in a winning offer.

Tips for Potential Sellers:

• I know, I know, where will I go? Give me a call to discuss options. Yes, a lot of my ideas are close to fishing, but there are many local options too.

Contact me for questions on how to take advantage of the market now.

Best, Rich