The 2023 Princeton residential real estate story remains the same – low inventory continues to affect pricing. Last month, Units Sold decreased (-19%), and Units Pended were flat (27 vs. 27) compared to June 2022, despite having -14% fewer listings. The Days on Market (DOM), while higher than last June’s unbelievable 15 days, was still only 43 days. Given this data, it is not surprising the Average Sale Price (ASP) increased (+18%) compared to June 2022. In other words, the consistent buyer demand and the lack of supply continue to exert upward pressure on the ASP.
When you take a deeper dive into the data, it is clear that the sales composition contributed to the notable increase in the ASP. Last month, the majority of sales (76%) were evenly distributed across the $1M-$2M (38%) and +$2M (38%) price ranges, while in June 2022, most sales (80.5%) occurred in the under $1M (38.3%) and the $1M-$2M (47.2%) price points. The sales growth in the +$2M price range increased the ASP.
How is Princeton performing year-to-date (YTD)? Units Sold (-32%) and Units Listed (-20%) both decreased while DOM increased (+19%) compared to January-June 2022. As for January-June 2023 versus January-June 2019 (pre-pandemic), Units Sold (-20%), Units Listed (-41%), and DOM (-48%) all decreased. The number of Units Sold is remarkable, given the low inventory levels.
The January-June 2023 ASP (+22%) and MSP (+32%) increased compared to January-June 2022. Compared to January-June 2019, the January-June 2023 ASP and MSP increased +46% and +47%, respectively. Please note that the data I share includes properties sold via BrightMLS. Every year some sales occur outside BrightMLS. For both consistency and to present timely information, we exclude the information associated with these off-market sales in my analysis.
So what does this all mean? During transitional markets, there are some constants. A well-priced home in a good location and move-in condition will sell quickly and for a premium. Other properties that may not necessarily tick all the buyers’ boxes take longer to sell and trade at or below the asking price (YTD, properties have sold for an average of 98.9% of their original asking price). While fewer properties are selling faster than in prior years because of low inventory and pricing remains high, there are still opportunities for buyers.
So what is happening now? There are currently 50 Active Units between $600,000 and $8,500,000, 20 Active Under Contract Units between $674,999 and $12,000,000, and 34 Pending Units between $700,000 and $2,750,000 in Princeton. Lastly, 12 properties were introduced thus far in July, and one is already pending.
What will July bring? Buyers who want to be in their new homes by the early fall may decide to purchase. While homeowners whose properties are not already on the market, may choose to list and take advantage of the low inventory.
As always, if you are thinking about buying or considering selling your home or want to learn more about Princeton area real estate market statistics, email us! Sig & Syl
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