The start of a new year is typically quiet for the real estate industry, but in New Providence and Summit the market is already starting to pick up. Both communities saw an increase in closed sales as buyers look to lock in mortgage rates, which are inching toward four-year highs.
Let’s take a closer look at the local markets.
New Providence Real Estate Market
Home sale prices in New Providence dipped slightly in February. The average home sold for $642,385, down from $646,644 at the same time in 2017, but higher than the average sale price for the same time in 2016, which came in at $601,123.
Closed sales rose 17 percent from one year earlier, with 6 deals completed.
Maxavenue real estate expert Jason Forster explained that the market is “status quo” at the moment but noted that he expects activity to increase in light of rising mortgage rates.
“I think that with rates starting to go up and the fact that people are no longer questioning what’s going to happen with the tax reform bill, those who were on the fence will make a move,” he says. “Buyers are going to be looking to lock in rates and take advantage of that while they’re still low.”
Summit Real Estate Market
Home sale prices in Summit have increased over the last twelve months, with the average sale price at $1,060,762, up from $1,053,762 in 2017, and $956,631 in 2016.
Closed sales in the Hilltop City surged, rising 36 percent, with 22 deals completed. The number of new listings remained flat at 34 properties coming to market. The average number of days on the market was slightly shorter at 43, versus 44 in 2017 and 45 in 2016.
“It looks like those who were hesitating are coming out and looking around and getting ready to jump in,” Forster said. “I think we’ll start to see a lot more listings in the coming months, as we usually do in spring.”