As you know, we typically start our year-in-review newsletter with some personal reflections and well wishes. After the extraordinary year we have all had, we are going to keep this one pretty simple…here’s to health and optimism in 2021!
It goes without saying that last year was an unbelievable year. Considering there was a global pandemic, a lockdown, an election, and a seismic shift in how people live, work, learn and play, it is remarkable that Units Sold only experienced a -4% decrease (278 vs. 291) in Princeton. While there were only 13 fewer sales, it is interesting to note the distribution of the Units Sold. In 2019, the majority of the sales were over the summer (August, June, July) which is pretty typical. In 2020, they occurred in July, August, and September which makes sense given the spring lockdown.
Also noteworthy is how the Average Sale Price performed. Compared to 2019, the 2020 ASP increased slightly (+1%, $1,039,280 vs. $1,024,423). There were a few sales outside BrightMLS, particularly in $2M+ range, but that is pretty typical.
The metric most affected is Units Listed which experienced a significant decrease (-12%, 396 vs. 449) compared to 2019. And similar to Units Sold, the distribution of Units Listed changed in 2020 with new listings more evenly spread throughout the year.
Given the buyer demand and the lower inventory, it is not surprising that the Days on Market (DOM) decreased (-9%, 68 vs 75) in 2020. Properties under $1M sold the quickest (average DOM of 60 days) and the slowest-selling houses were in the $2M+ range (average DOM of 103 days). Properties between $1M-$2M sold on average in 78 days.
So what will 2021 bring? Our sense is that buyer demand, low inventory, and favorable interest rates will continue and this year will be very active for Princeton residential real estate. That said, sweeping generalizations cannot be made about our market. Properties in certain price points, locations, and conditions can behave differently from a statistical standpoint. And while pricing a house is not an exact science and other factors often come into play, it is helpful to understand overall 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