The July 2025 Princeton residential real estate market reflects a compelling mix of resilient buyer demand, limited inventory, and strong price performance.

Compared to July 2024, while new listings declined by 8%, properties under contract surged by 33%, and closed sales rose 30%. Homes spent an average of 39 days on market which is up slightly from 32 days last July. The Average Sale Price increased 5% year-over-year to $1,623,537, while the Median Sale Price declined 8% to $1,355,000, reflecting a higher concentration of mid-market sales.

When we look at how the Princeton residential market has evolved each July since 2019, a clear story emerges: one of tightening supply, steady demand, and shifting market dynamics.

In July 2019, 39 homes were listed, and 34 closed, with an average of 57 days on market. Fast forward to July 2025, the number of new listings has dropped to just 23, a 41% decline, yet closings have increased to 39 (+15%).

At the same time, Units Pended have risen to 28, the second highest in the last 7 years, reflecting strong buyer engagement despite the limited choices. One notable shift is the increase in average Days on Market, which climbed to 39 this July, after hovering in the mid-20s from 2021 to 2023. While homes are still moving faster than they were pre-pandemic, this uptick may signal growing price sensitivity or hesitation among buyers as inventory remains scarce and prices stay elevated.

Overall, the July data points to a market that is competitive and resilient, but also slightly more discerning. Sellers still benefit from low competition, but buyers appear to be proceeding with more caution than in the frenzy of the past few years.

Home prices in Princeton have experienced significant appreciation over the past seven years, with both the Average and Median Sale Prices trending sharply upward. In July 2019, the average sale price was $1,056,715, and the median was $887,500. By July 2025, the average price has surged to $1,623,537, reflecting a 54% increase, and the median has risen to $1,355,000, a 53% jump from pre-pandemic levels.

Looking at Princeton’s year-to-date performance from 2019 through 2025, the long-term trends reveal a tighter and faster-paced market. In 2019, 341 homes were listed by this point in the year. In 2025, that number is down to 224 (a 34% decline). Despite that drop, the number of homes sold year-to-date has remained strong, with 159 Units Closed in 2025, a 19% increase over last year.

Pending sales have also increased, reaching 177 through July 2025, up from 161 last year and signaling continued buyer engagement. Meanwhile, the average Days on Market sits at just 40, well below the 77-day average in 2019 and in line with the faster tempo of recent years. These figures reflect a market that is characterized by sustained demand, limited supply, and historically elevated home values.

Home values in Princeton have risen steadily and meaningfully over the past seven years, with both average and median sale prices hitting all-time highs in 2025. As of July, the Average Sale Price stands at $1,681,715, up 14% from 2024 and 66% higher than in 2019, when the average was just over $1 million. Similarly, the Median Sale Price has climbed to $1,438,000, a 60% increase over the same period. This sustained growth reflects the deep demand, constrained supply, and long-term desirability of the Princeton market.

What’s going on in the greater Princeton area? Through July 2025, Princeton continues to lead the region in both Average and Median Sale Prices, followed by Cranbury and Montgomery Township. In terms of sales volume, Princeton recorded the highest number of closings (159), with Lawrence (153), and West Windsor (150) close behind. Lastly, Hopewell Borough remains the fastest-moving market with an average of just 22 days, followed by Plainsboro (25) and Hopewell Township, Lawrence, Montgomery, and West Windsor (28 each).

What is happening now in Princeton? There are 52 Active Units between $675,000 and $6,500,000, 17 Active Under Contract Units between $688,000 and $5,475,000, and 17 Pending Units between $595,000 and $3,200,000 in Princeton. Lastly, only two new listings have been introduced thus far in August.

As the summer starts to come to an end, the Princeton market continues to reflect a resilient and highly competitive environment. Low inventory, solid buyer interest, and record-setting prices define the landscape

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

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