Just Sold – 237 N Mountain Ave, Montclair

Sales Associate Amy Barnett came to us determined that she could sell this home with some updates and staging that would highlight the strengths of the home. It had been on and off the market with 2 other agencies since 2022. A surprise leaking underground oil tank and multiple lien holders made this deal especially tricky to navigate. With Amy’s vision and hands-on hard work, it closed after receiving multi offers.

Montclair Real Estate Market Consistent in June

No real surprises in the real estate market during the month of June.

Average sales prices retreated to $1.4 mil from record high $1.6 mil in May, while days on market at 23 and premium over ask of 22% were in line with the past 12 month average.

One item of note is that 47 closings in June were the most sales since 53 in July 2022, so the earlier bump in Spring inventory was absorbed by the market. 71 active listings in June, while up from 63 in June ‘24, fell from 92 in May of this year and we should see inventory continue to dwindle until we get a bump in Sept/ Oct.

Increase in Whole House/Larger Rentals

Buyers unable to find the right single family home in the timeframe they need are increasingly turning to rentals. This is driven largely by buyers that are having trouble securing a purchase before the school year and transfers from outside the area that, logistically, can’t effectively shop for a home from afar.

The data supports this trend as there were only 17 rentals of 3 bedrooms or more, of which 12 were $5k/month or more, rented in the first 6 months of 2024, versus 41 3BR+ homes, with 28 $5k+, renting in the first 6 months of 2025.

Were there larger and more expensive homes that went unrented last year?

Not really; it seems the demand and higher prices has induced owners to rent through word of mouth or the request of their real estate agent.

2 Big Legislation Changes 

SALT Tax deductions

Effective for tax year 2025, the State and Local Tax deduction will increase to $40,000 from $10,000. With an average tax bill of about $22,000 in Montclair, that’s good news for local homeowners and helps buyers’ budgets. An extra $12k tax deduction at 25% federal income tax rate equates to an extra $250/ month. If applied to an 80% mortgage on a $1.2 mil home, that’s an extra $50k of purchase power.

The Supplemental Realty Transfer Fee “Mansion Tax”

The government giveth and the government taketh away. Governor Murphy just signed into law a change to the Supplemental Realty Transfer Fee, colloquially known as the “mansion tax” or, more aptly here in Montclair, the “Average House Tax”. The new fee is graduated on home values in excess of $1 million.

Here is a rough breakdown:

• 1% of total consideration if in excess of $1,000,000, but not in excess of $2,000,000
• 2% of total consideration if in excess of $2,000,000, but not in excess of $2,500,000
• 2.5% of total consideration if in excess of $2,500,000, but not in excess of $3,000,000
• 3% of total consideration if in excess of $3,000,000, but not in excess of $3,500,000
• 3.5% of total consideration if in excess of $3,500,000
• So for the estimated 280 people whose homes are worth over $2 million in town, sorry, but your home is now effectively worth between 1% and 2.5% less than it was last week depending on the value of your home.

Also, the responsibility will now fall on the seller vs the buyer to pay at close. Who pays this fee has always been negotiable and I expect it will continue to be so.