Happy New Year!
It goes without saying that last year was another unbelievable year for the Princeton residential real estate market. There were increases across the board in Units Sold (+33%, 370 vs. 278), Average Sale Price (+13%, $1,171,115 vs. $1,039,280), and Units Listed (+13%, 446 vs. 395). On the other hand, the average Days on Market (DOM) experienced a -31% decrease (46 vs. 68). Granted, 2020 was a truly unusual year, but even comparing 2021 to 2019, a pre-pandemic year, the data is still pretty remarkable.
Again, Units Sold increased ( +27%, 370 vs. 291) as did the Average Sale Price (+14%, $1,171,115 vs. $1,024,423) in 2021 compared to 2019. Units Listed was effectively flat (-1%, 446 vs. 449) and the average Days on Market (DOM) experienced another significant decrease (-37%. 47 vs. 75) during the same period. While inventory absorption was one of the key takeaways from 2021, another big story from last year is the record number of high-end (over $2M) sales. There were 37 closings via the MLS. The previous highest number of MLS closings (21) occurred in 2017 and 2005. Important to note, every year there are properties, particularly in the high-end, that sell outside the MLS. For consistency, we only provide data from BrightMLS.
In order to better understand the 2021 ASP increase, let’s take a look at the Units Sold composition of 2021 compared to 2020.
It is noteworthy that 10% of 2021 Units Sold were in the +$2M price range. Now let’s compare the 2021 sales configuration to 2019.
Given the high number of +$2M sales in 2021, it is unsurprising that the 2021 ASP was materially higher than both the 2020 ASP and the 2019 ASP.
What is happening now in Princeton? There are currently 30 Active listings between $450,000 and $8,500,000, 19 properties that are Active Under Contract between $329,000-$12,000,000, and 22 Pending listings between $395,000-$2,199,000. Thus far in 2022, there have been 4 closings and 2 new listings ($1,025,000 & $1,895,000) introduced.
What will 2022 bring? While we wish we had the proverbial crystal ball, our sense is that buyer demand will continue and 2022 will be another active year for the Princeton residential real estate. All that being said, sweeping generalizations cannot be made about our market. Properties in certain price points, locations, and conditions can behave differently from a statistical standpoint. As 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!