A market defined by low supply, rising prices, and steady buyer engagement.

The Princeton real estate market remains remarkably strong and resilient. May 2025 delivered a powerful combination of constrained inventory, rising prices, and sustained buyer activity. New listings dropped 40% year-over-year, while the average sale price rose 21%, and the median sale price climbed 10% compared to May 2024. At the same time, pending sales jumped 29%, underscoring a market where buyers remain active despite limited options.

Looking at May activity over the past seven years, 2025 stands out in several key ways. At 29 homes, May 2025 represents a 50% decrease in listing volume compared to pre-pandemic May 2019. Yet despite this scarcity, 40 homes went under contract, representing the second-highest number of pending sales since May 2021. The Days on Market (DOM) increased from 26 in 2024 to 37 in 2025, indicating that buyers are taking more time to make their decisions. This seven-year view underscores what the monthly data indicates: inventory has steadily contracted, but buyer motivation remains strong. 

Given the limited number of homes listed and the elevated number of homes going under contract, it is no surprise that May 2025 recorded the highest Pending-to-New Listing Ratio in the past seven years. For every new listing, more than one home went under contract.

May 2025 saw new highs in both average and median pricing, even as buyers are taking more time to make decisions with longer DOM.

The Year-to-Date (YTD) data through May 2025 further reinforces Princeton’s market strength, although subtle shifts suggest evolving buyer behavior. Units Sold are up 26% compared to this time last year (86 vs. 68), and pending sales have edged slightly higher (123 vs. 119), showing consistent demand. New listings remain relatively flat year-over-year (158 vs. 160), which continues to constrain inventory and support upward price pressure. One notable change is in DOM, which rose from 39 in 2024 to 49 in 2025. Echoing the May data, which implies buyers are taking more time, possibly due to higher prices, but are ultimately still moving forward.

In contrast, DOM remains well below pre-2020 norms, signaling continued market efficiency relative to historical standards. Viewed against the past seven years, 2025’s YTD data show a market that remains highly active, albeit slightly more measured in pace. A healthy sign of stabilization after the ultra-competitive conditions of 2021–2022.

The 2025 YTD Average Sale Price experienced another breakout year, with record highs in both average and median prices. Further demonstrating continued buyer confidence as limited inventory is absorbed. 

The YTD Pending-to-New Listings Ratio through May is one of the clearest indicators of market pressure. With 78% of new listings going under contract, this year marks the highest buyer absorption rate since 2021. Once again, this suggests sustained buyer demand, even as prices have risen and Days on Market (DOM) has lengthened.

What is going on in the greater Princeton area? Through May 2025, Princeton continued to lead the region in both Average and Median Sale Prices, followed by Cranbury and Montgomery Township. Lawrence Township recorded 90 sales, Hopewell Township had 89, and West Windsor followed closely with 88. In terms of market speed, Hopewell Borough leads with an average DOM of just 20 days, followed by Plainsboro (27) and Lawrence (29).

What is happening now in Princeton? There are 61 Active Units between $750,000 and $6,500,000, 30 Active Under Contract Units between $599,000 and $4,250,000, and 35 Pending Units between $760,000 and $3,500,000 in Princeton. Lastly, 17 new listings have been introduced thus far in June – including 3 that are in Coming Status and 4 that are already under contract.

As we move into the summer, Princeton’s real estate market remains one of high demand and limited supply. Pricing is strong, competition is tight, and opportunities exist for those who are well-prepared and swift to act.

Whether you are considering selling, buying, or simply want to understand your home’s value in today’s market, I would love the opportunity to help guide with clarity and diligence every step of the way.

Please don’t hesitate to call (917-396-5880) or email me!