Happy 2020! It’s crazy to believe that not only is this a new year, but it is also a new decade! We hope the new year – and decade – bring you lots of peace, success, happiness, growth, and laughter.
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. Residential real estate can be a fast-paced, dynamic industry where trends are often gleaned after the busy season ends and the year is over. So what was 2019’s story? Like 2018, it was a fascinating one! Generally speaking, in 2019 prices recalibrated, local buyers saw some great opportunities, and the data reflects the amount of activity. Which is interesting because 2019 started with a fairly quiet Q1 and Q2 and ended with BANG as Princeton experienced a very busy Q3 and Q4.
Now let’s dive into the numbers. Compared to 2018, the 2019 ASP increased (+5%, $1,023,562 vs. $971,566). Important to note, there were approximately 9 sales over $2M in 2018 outside BrightMLS so this obviously skews the data a bit. The good news is in 2019 we did not experience the same phenomenon. And while there were a few over $2M sales outside BrightMLS, that is a bit more typical. In 2019 Units Sold increased 15% (292 vs 253) compared to 2018. Most of the 2019 Units Sold occurred in August (41), June (28), and July (34) compared to June (41), July (36), and May (25) in 2018. The composition of Units Sold year-over-year were as follows: 176 Units under $1M versus 161 Units in 2018, 98 Units between $1M-$2M compared to 82 Units in 2018, and 15 Units over $2M compared to 10 Units in 2018. Again, please note that these numbers ONLY reflect sales in BrightMLS.
Units Listed in 2019 also experienced an increase (6% ,449 vs. 424) over 2018 with the majority of the Units Listed in April (83), May (57), and September (42) versus April (72), May (63), and June (47) in 2018. The bulk of 2019 Pendings transpired in July (67), June and May (56), and August (52) compared to June (70), April (65), and May (62) in 2018.
Lastly, the Days on Market (DOM) experienced a 19% increase (75 vs 63) in 2019 compared to 2018. Properties under $1M sold the quickest with an average DOM of 57 days. The slowest-selling houses were in the $2M+ range with an average DOM of 139 days and properties between $1M-$2M sold at an average DOM of 98 days.
So what will 2020 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 sales of 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