Happy 2019! A new year brings a sense of hope, opportunity, and renewal. Resolutions are made with health, mindfulness, and organization typically at the top of the list. We are looking forward to a happy, healthy, and productive 2019.
The year in review is one of our favorite newsletters to write. It provides us with the opportunity to reflect, to learn, and to prepare for the year ahead. As you know, real estate is a fast-paced and dynamic industry where often trends are gleaned once the busier seasons end and the year is over. So what was 2018’s story? It was a fascinating one! The year started with a pretty quiet January and February which experienced both fewer Units Sold and Units Listed compared to the same period in 2017. March’s chapter was all about the weather with four back-to-back Nor’easters and the lower inventory and slower sales continued. And then April happened…when LISTINGS and SALES shot up 34% and 35% respectively compared to April 2017. And another interesting trend began…the monthly Average Sale Price (ASP) decreased in all but two months, August and December, compared to the 2017 monthly ASP. Additionally, it appeared that fewer +$2M houses were selling year-over-year. When in reality there were several properties sold outside of the MLS and as such, excluded from the MLS statistics. Hold that thought as we will post another piece that will go into more detail about this shortly.
What about trends for monthly Units Sold, Units Listed, and Days on Market? There was no consistent activity as each month flip-flopped between increasing year-over-year and decreasing year-over-year.
So how did the year end? Compared to 2017, the 2018 ASP decreased (-7%, $972,916 vs. $1,047,283) as did the number of Units Sold (-15%, 253 vs. 314) and the DOM (-20%, 81 vs. 101). The number of Units Listed increased slightly (+1%,428 vs. 424).
Now let’s dive a little deeper and start with the ASP. In 2018, 63% of properties sold were under $1M compared to 62% in 2017 (+2%). 33% of the houses sold in 2018 were between $1M-$2M versus 31% in 2017 (+6%). The most significant change was in the +$2M range, which we have already discussed, with 4% of the 2018 properties sold over $2M compared to 7% in 2017 (- 43%).
Most of the 2018 Units Sold occurred in June (40) and July (36) compared to June (47) and August (42) in 2017. The majority of 2018 Units Listed happened in April (72) and May (64) versus May (61) and March (58) in 2017. Lastly, the bulk of 2018 Pendings transpired in April (39), May (33), and June (33) which was pretty consistent to 2017 where May (45), April (39), and June (39) experienced the most Pendings. As it relates to Days on Market (DOM), properties under $1M sold the quickest with an average DOM of 55 days. The slowest-selling houses were in the +$2M range with an average DOM of 289 days.
So what will 2019 bring? We don’t know about you, but we are so excited to find out! As we always say, sweeping generalizations cannot be made about our market. Certain price points, locations, and more recently updated houses behave differently from a statistical standpoint. And while pricing a home is not an exact science and other factors often come into play, it is helpful to understand market trends. Speaking of markets, if you are thinking about buying or selling your home or want to learn more about Princeton area real estate market statistics, feel free to email us! Sig & Syl