Montclair, NJ Home Sales Statistics 2017-2022

Record High Home Prices & Record Low Inventory in Montclair

2022 Local Market Recap

Average annual home prices in Montclair and Glen Ridge broke $1million for the first time as demand continues to outstrip supply.

Average sales price exceeded asking price by a record 23% in 2022.

We are certainly seeing large premiums paid for houses, but as I’ve said before, this is somewhat due to pricing with the expectation of multiple offers. 

The disparity between ask and close price is further compounding the challenge for buyers facing low inventory.    

Pronounced Low Inventory

New listings to the Montclair market fell to 449 in 2022 from 522 in 2021 and 649 in 2020, a 31% decrease.

The 2020 level of new listings was not a COVID anomaly but consistent with a 658 average over the prior 3 years. Sellers have been sitting tight, but we expect some relief in 2023, which I will discuss later.

Surrounding Area Results

Average sales price exceeded ask in all the surrounding towns surveyed for the second year in a row.

Towns with train lines (Montclair, Glen Ridge, South Orange and Maplewood) continue to command the highest premiums above ask. Millburn homes tend to sell near ask price due to the high average sale price, $1.68 million in 2022.

Outlook for Buyers

The first thing I tell buyers in January is, don’t panic, most of the inventory comes on the market in April and May. 

Granted, the overall levels have been lower in the past 2 years, and it remains to be seen if we will get a bump in 2023, but I have to believe sellers will respond to higher prices. In theory, prices can’t be sustained with higher mortgage rates. A $2,565 budget at 3.11% mortgage rate on 1/1/2022 got you a $600k loan, whereas it only got you a $409k loan at 6.42% on 12/31/22. 

With that in mind, I’d be planning to sell sooner than later if I were a homeowner. Potential sellers have been reluctant to move as they have refinanced at low rates, lowering their carrying costs, while facing higher rates and low inventory for their next move. However, those higher rates have resulted in lower prices in areas outside our marketplace and downsizers can use the equity from their sale to reduce their interest rate exposure.

Contact me for more information and with your questions. 

Best, Rich