Demand remained strong in February 2025, with Units Pended up 45% compared to February 2024. However, Units Closed fell 50%, reflecting the 42% drop in new listings from January 2025, which limited available inventory. February 2025 also saw a 26% increase in Units Listed year-over-year, offering a slight boost in supply that could help balance the market moving into spring. Days on Market (DOM) increased by 15%, with homes taking an average of 86 days to sell. Although the Average Sale Price surged 37%, this was largely due to a single high-end $3.85M sale among just four transactions, rather than a broad-based price increase. The Median Sale Price rose 21%, providing a more stable indicator of appreciation. In February 2025, buyer demand remained steady, and the increase in inventory was a welcome shift for the market.

To put February’s numbers in perspective, let’s take a look at how Princeton’s market has evolved over the past seven years. February 2021 and 2022 marked peak sales, with 18 and 19 Units Sold, but since then transactions have declined with February 2025 reaching a seven-year low of only 5 Units Sold. Listing activity, which peaked in 2020 and 2021, dipped in 2023 before rebounding to 29 new listings in 2025. Pending sales have fluctuated, with 2022 seeing the highest demand (28 Units Pended) and 2024 hitting a low (11 Units Pended) before recovering to 16 in 2025. Meanwhile, Days on Market (DOM) has steadily increased, from a low of 48 days in 2021 to 86 days in 2025. As the market moves into spring, rising inventory and steady buyer demand suggest a more balanced environment.

How has this market activity affected Princeton home prices? They have seen significant appreciation in the month of February, with the Average Sale Price nearly doubling from $919,750 in 2019 to $1,798,400 in 2025, while the Median Sale Price rose 66% over the same period. While home values continue to climb in the month of February, the market’s increasing Days on Market (DOM) indicates a shift toward a more measured pace, making strategic pricing essential for sellers.

Year-to-date data for 2025 compared to 2024 shows signs of modest market recovery. Units Sold increased from 17 to 19 (+12%), while Units Listed rose from 35 to 39 (+11%), providing a small but needed boost to inventory. Units Pended climbed from 22 to 25 (+14%), indicating steady buyer activity despite a slower sales pace as Days on Market (DOM) rose significantly from 55 to 81 days (+47%). While sales activity has improved year-to-date compared to last year, the extended DOM once again highlights the importance of strategic pricing and patience for sellers navigating the 2025 market.

Year-to-date home prices in 2025 show a continued upward trend, with the Average Sale Price rising to $1,591,158, a 22% increase from 2024, while the Median Sale Price climbed to $1,525,000, reflecting a 26% jump. After fluctuations in prior years, home values have surged since 2023, when both the Average ($1.3M) and Median ($1.26M) Sale Prices saw substantial gains. 

Through February 2025, Princeton recorded the highest Average and Median Sale Prices, followed by Cranbury and Montgomery Township. Hopewell Township and West Windsor led in number of Units Sold (25 each), with Lawrence Township close behind (24 sales). In terms of market speed, Hopewell Borough had the fastest Days on Market (DOM) at just 6 days, followed by West Windsor (30 days) and Montgomery Township (33 days), indicating strong demand in these areas.

What is happening now? Princeton currently has only 41 Active Units between $649,000 and $5,750,000, 16 Active Under Contract Units between $715,000 and $3,950,000, and 13 Pending Units between $186,370 and $4,350,000 in Princeton. Lastly, 4 new listing have been introduced thus far in March.

I remain optimistic about sustained buyer demand and increasing inventory in 2025. These dynamics could create a more active and balanced housing market, presenting 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!