So finally the Spring Market is starting to heat up. And by that I mean, the inventory is increasing and buyers are out at the Open Houses!
Take Home Message: Don't try to underbid in Montclair and Glen Ridge. It's not gonna happen. That is unless that particular home has been on the market for ages.
Here is the market activity thus far. Please keep in mind, home prices listed here are always MEDIAN prices. This is not a straight average, it takes into account the skew of prices in one direction or another. This is very important and different than some other market analyses online, because while there may be some homes on the market for say $350,000, there is a greater majority of homes on the market for over $500,000. Thus a mean list price of somewhere in the $400,000's is not useful to the prospective buyer, as homes might not exist at that price on the market.
So here we go!
The above figure shows that Glen Ridge list prices tend to be higher than Monclair and South Orange list prices. The median sold LIST prices are slightly lower for all but South Orange. The median list price for the active listings and sold listings was $535,000 (Montclair), $539,900 (Glen Ridge) and $509,000 (South Orange). That is, sellers in Montclair and Glen Ridge accepted offers above the asking price. To clarify this point further, the figure below shows the settled sale price of homes in each town, as a percentage of their list price.
What this means is that in terms of median price, Montclair homes sell for over asking price. More so than Glen Ridge homes even, which started out with a higher listing price (as seen in the first figure). No surprise, if the price is teasingly lower, more people will fight for it. South Orange has median sale prices that are relatively close to their list prices.
This information is all very well and good, but it is important to understand the inventory it comes from. That is, one needs to know how many homes are included in these averages.
From this figure we first can see the actual number of homes sold or actively for sale across towns since December. In terms of days on market, homes in South Orange tend to stay have more Days On Market (DOM) than Glen Ridge and Montclair, in that order. I'm not going to speculate on the reason why. However it is interesting to compare this longer DOM to the lower sale price/list price ratio! Perhaps the longer one stays on the market, the more likely they are to take an offer under asking price This trend continues into the active listings, they haven't been on the market that long (newer to the Spring Market).
I know the math is kind of dry, but it's super exciting to me because that's my thing: Tracking trends in my marketplace. The single family homes in this analysis are all between $400,000 and $600,000 in these towns. None were from a community living situation (i.e. Townhomes or Condos). If you'd like an analysis of condos, or a greater price-range, please feel free to ask! Again, it's my thing.
Hope this was helpful! And as always, Happy House Hunting!