Real Estate Sucks – What about Montclair

by Jeffrey Bogert on August 26, 2010

Unless you have been living under a rock the last couple of days you have certainly heard that home sales fell off the cliff in July down 27.2% and that end times are certainly upon us. Looking a 20 city composite index from the good folks over at Altos Research  you can see what is happening. Inventories are rising and the number of listings being absorbed are falling. Certainly the home buyer tax credit pulled people into market that may have waited. Couple this with high unemployment and job uncertainly it may not matter if the interest rate go to zero the homebuyers may not move off the fence. As goes housing so goes the economy. With mortgage rates floating somewhere between 4 and 4.5% your purchasing power may in fact be greater that it was back in the spring before the tax credit when mortgage rates were about a 1 – 1.5% higher.  but from a potential buyers perspective “…if your aint got no job, you ain’t got no money to pay the rent, so out the door I went…” (George Thorogood  for those playing along at home).Altos Research August 20 city composite index of inventory vs. absorption 
Altos Research price decrease vs. new listings.

What about the Montclair Real Estate Market?

Lets look at these same statistics for the Montclair single family home market. Below we can see that starting in mid July the inventory levels start to drop and fall below the rate of absorption in the beginning of August which seems to be bucking the national trend. I suspect some of this inventory drop can be attributed to sellers who were listed this spring withdraw their listing with the intention of putting the house back on after labor day or deciding to stay put for the time being.

 Real Estate Market Chart by Altos Research

What about home prices in Montclair. We can see that starting at the beginning of July active Montclair home sellers are taking price reductions and new Montclair home sellers entering the market are priced lower than their competition. This is putting downward pressure on home prices.

Real Estate Market Chart by Altos Research

What this means for you really depends which side of the fence you are on. There have been many homes this year that have sold at or above asking price in Montclair. So far this year the stats for single family homes sales in Montclair are as follows:

    • Number of Sales – 171
    • Average List Price was $706,754
    • Average Sale Price was $698,397
    • Average Days in Market – 63

Rumour has it that even the Strahan house has gone under contract in a private deal.  As has always been the case in Montclair it is imperative to price your home at a point where others perceive it as the best value available . This provides you the best chance of generating an offer. Although price alone will not necessarily do it these days as buyers are now demanding that homes be in great condition and be presented well. When these factors are in place we have seen multiple offers being presented to the homeowner . If you are considering selling we have the tools to help you realize the maximum value in the least amount of time. Please reach out to us at (973) 464-0568 for a private consultation of your specific situation.



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