Demand remained strong in January 2025, with a 100% increase in Units Sold, while Units Pended held steady despite a 42% decline in new listings compared to January 2024. Given the lower inventory levels, it’s no surprise that both the Average Sale Price and Median Sale Price rose by 18% and 54%, respectively, year-over-year. The Average Days on Market (DOM) returned to pre-pandemic levels. While Princeton’s residential real estate market continues to demonstrate resilience, new inventory is needed.

Over the past seven years, January market activity has fluctuated. In January 2025, Units Sold rebounded after reaching a low in 2024, while Units Listed hit their lowest level on record following another low year in 2024. Units Pended remained relatively stable, with the exception of peaks in 2021 and 2022, and Days on Market experienced the most significant swings during this period. Despite historically low inventory levels, buyer demand has remained relatively steady in January.

While January pricing also fluctuated over the years, the Average Sale Price rose by 66% from $913,773 in 2019 to $1,517,143 in 2025, while the Median Sale Price grew by 65% from $885,000 to $1,462,500. The record-high prices in January 2025 indicate that low inventory and sustained demand continue to drive price increases.

As in my year-in-review, below is a brief analysis of the broader Princeton area markets. In January 2025, Princeton recorded the highest Average and Median Sale Prices, followed by Cranbury and Montgomery Township. Princeton also led in Units Sold (14), with West Windsor and Lawrence Township closely behind (13 each). The fastest Days on Market (DOM) was seen in Montgomery (22 days), followed by West Windsor (33 days). Overall, Princeton led in both pricing and sales activity in January 2025.

What is happening now? Princeton currently has only 26 Active Units between $665,000 and $8,500,000, 11 Active Under Contract Units between $670,000 and $4,350,000, and 11 Pending Units between $599,000 and $3,877,000 in Princeton. Lastly, only one new listing has been introduced thus far in February.

I remain optimistic about both continued buyer demand and an increase in inventory for 2025. These dynamics could lead to an active and more balanced housing market, offering great 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!