Amid ongoing macroeconomic factors such as rising interest rates, higher inflation, and geopolitical risks influencing the broader real estate market, 2024 was another remarkable year for Princeton’s residential market. Last year there was a slight dip in Units Sold (-2.5%), a notable rise in Units Listed (+6.6%), and steady growth in both the Average Sale Price (+5.4%) and Median Sale Price (+5.2%), while Days on Market edged slightly higher (+2.6%) compared to 2023. In simpler terms, there were fewer sales and more listings, but properties sold at higher prices and took about the same time to sell as in 2023.

Before we take a deep dive into the data, it is essential to note that several sales occur outside BrightMLS, often in the high-end, and this data is not included in this analysis. 

How does 2024 compare to the market activity over the past 6 years? Units Sold saw a 37% decline compared to the exceptionally hot market of 2021, while Units Listed experienced a 32% decrease compared to pre-pandemic levels in 2019. Days on Market, although not as fast as the peak pace in 2022, remained relatively low, averaging just 39 days from market launch to agreement. While 2024 saw a drop in Units Sold from the 2021 peak, Princeton also experienced a similar decline in Units Listed, which helped maintain a fast transaction pace.

What does 2024 market activity mean for the overall market? The Sales-to-New Listings Ratio suggests a slight softening compared to the last three years, but it remained firmly a seller’s market, indicating that demand continued to outpace supply.

Other interesting insights include that June recorded the highest sales volume, May saw the most contracts, and April had the most significant number of new listings, while homes that closed in May sold the fastest.

Now, let’s take a closer look at the Princeton Average and Media Sale Prices. Last year’s Average and Median Sale Prices increases were the most modest year-over-year changes since 2020. While the growth rate has slowed slightly, both metrics continue to climb, reflecting a strong market and sustained price appreciation.

The 2024 sales composition by price point indicates that the Under $1M market is shrinking, the $1M–$2M segment remains a vital part of the market, and the Over $2M category is clearly growing. As more sales occur in the Over $2M category, the Average Sale Price and Median Sale Price continue to rise.

Lastly, as part of my year-in-review, I thought it would be helpful to provide a brief analysis of broader Princeton area towns. In 2024, Princeton recorded both the highest Average Sale and Median Sale Prices, followed by Montgomery Township. Lawrence Township (286) and Hopewell Township (285) were effectively tied for the most Units Sold. The quickest Days on Market (DOM) were seen in Hopewell Borough (17 days), followed by West Windsor (23 days).

What will 2025 bring for Princeton? From a macro perspective, indicators suggest a more favorable interest rate environment and a stabilization of current rates. On a micro level, I anticipate continued buyer demand and remain optimistic about inventory levels. These dynamics could lead to an active and more balanced housing market, offering opportunities for both buyers and sellers.

As always, if you are thinking about buying, selling, or want to learn more about the Princeton area real estate market, please don’t hesitate to call (917-396-5880) or email me!