The 2017 real estate season is mixed in Summit and New Providence compared with numbers from 2015 and 2016, according to the newest report from the Garden State Multiple Listing Service.
Summit’s up, Mid-range homes see a boost
In Summit, buyers may have noticed an increase in prices at the same time inventory has also seen a slight bump. There were 468 new listings on the market in May as compared to 451 at the same time last year.
In April 2017, four-bedroom homes in Summit were most popular among buyers, with 106 homes sold for an average of $1,055,051, up from 94 homes sold at an average of $1,034,833 in 2016 and 89 homes sold at an average of $987,753 in 2015.
“Summit continues to rise, but at a slower pace,” explained Maxavenue real estate broker Jason Forster.
Three-bedroom homes were the second most-sold category. Prices were up here as well, with an average sale price of $632,048, compared with $622,051 in 2016 and $621,927 in 2015.
New Providence Levels off as Inventory Shrinks
In New Providence, prices slipped a bit. In April 2017, the average home sold for $597,202 after 45 days on the market, compared with $601,123 one year ago, after 44 days on the market.
However, while buyers in New Providence may have seen a slight decrease in prices, it’s important to note that inventory is also a bit lower which typically leads to rising prices. There were 201 new listings on the market in May as compared to 206 at the same time last year. Those figures are down more significantly from 2015 when 231 new listings came on the market.
“Overall, the New Providence market appears to be flat overall. There wasn’t too much variation from 2016 through the last 12 months,” Forster said. “The five-or-more bedroom homes sold at a higher average price in 2016 and the three- and four- bedrooms homes are seeing an increased average price for the last 12 months.”
However, while the last 12 months have been stable, homes with five or more bedrooms sold for an average price of $820,385 in April 2017 compared with $863,656 for the full year of 2016 and $961,185 in 2015.
The news was more encouraging for three-bedroom homes which sold for an average of $530,416, in April 2017 compared with $522,816 at the same time in 2016, which was a substantial decrease from the local market peak in 2015 when they sold for an average of $584,362.
Positive outlook
According to experts, price growth is project to continue in 19 New Jersey towns. The common thread: trains. The link among the Garden State’s hottest towns is obvious — easy access to transit. Each of the 19 areas that saw prices surge head and shoulders above their otherwise similar counterparts feature an NJ Transit station. Though the rail service hasn’t been as reliable as it once was, homebuyers are still attracted to the convenience of mass transit.
That’s welcome news for communities like Summit and New Providence which both offer train service to Manhattan. Plus, as inventory of active listings shrinks and demand remains stable, prices are likely to rise.