Home prices remained robust in both New Providence and Summit over the past month, while the number of closed sales in each community dropped as buyers await more information on possible tax reforms that would impact mortgage interest deductions.
Let’s take a closer look at the local markets.
New Providence Real Estate Market
Home sale prices in New Providence increased nicely in November. The average home sold for $639,300, up from $601,123 at the same time in 2016, and surpassing the average sale price for the same time in 2015, which came in at $626,622.
This month, the number of new properties on the market rose by approximately 50 percent, with 15 new listings becoming available during November.
“That number is still fairly low compared to other years,” explains local market expert and Maxavenue broker Jason Forster.
The average time spent on the market was 45 days, one day more than last year at this time, but far shorter than the time spent on the market in 2015, which was 55 days. Closed sales were down 36 percent from one year earlier, with just seven deals completed, which Jason attributes to tax reform concerns.
“One of the main reasons closed sales are down from last year is because there are a lot of people waiting to see what new proposed tax reforms might mean and if they will eliminate or limit property tax deductions,” says Jason. “People buy homes to gain wealth and to take advantage of those deductions. A lot of buyers are waiting to see what happens next.”
Summit Real Estate Market
Home sale prices in Summit have risen over the last twelve months, with the average sale price at $995,657, up from $956,631 in 2016, but down from $1,018,490 in 2015.
Inventory in the Hilltop City was up by 17 percent, with the number of new listings at 35.
“Again, while it’s increasing, inventory is still low and, obviously, that’s what helps get prices moving higher,” Jason said. “The houses people are buying, they’re fighting over.”
The average number of days on the market also dropped slightly. That figure decreased to 42 days, down from 45 days on the market in both 2015 and 2016. The number of closed sales — 15 — was down by 38 percent from last year at this time.
“In addition to the tax reform situation, the holidays also have things slowing down a bit, which is to be expected,” adds Jason. “Lower priced homes might not be as affected as those over a million, but a lot of buyers are anxious to hear what these reforms could mean.”