There were a mere 71 active Montclair NJ homes for sale in January; the lowest level I was able to find in MLS records. 24 of those 71 active home listings were new in January.
While the beginning of the year is traditionally slow for inventory, 71 active listings is distinctly below 124 at the same time last year.
There is relief on the horizon, though. The number of homes newly listed monthly on the real estate market are typically in the 40’s in February, increasing to the 90’s in April and May.
What has been the effect of limited supply on home prices so far?
Predictably, limited supply seems to be driving up prices, with January itself being a notable month.
Given the consistent seller’s market, the average sales price over asking price percentage has been hovering around 6% for the past 12 months. The 18 houses that closed in January sold for an average of 9% over asking price, a significant jump.
One would expect an increase in new homes for sale this Spring in response to the new tax legislation, new assessments, and a cold winter that could motivate empty nesters to shorten their move time horizons.