New Providence & Summit January 2018 Real Estate Report

Home prices started off 2018 strong in both New Providence and Summit, as inventory in each community remained relatively low. But as spring approaches and concerns about the tax reform bill are allayed, we can expect to see increased activity in the form of new homes coming to market and a bump in sales.

Let’s take a closer look at the local markets.

New Providence Real Estate Market

Home sale prices in New Providence increased in January. The average home sold for $646,644, up from $601,123 at the same time in 2016, and surpassing the average sale price for the same time in 2015, which came in at $626,622.

This month, the number of new properties on the market rose by approximately 33 percent, with 4 new listings coming on the market during January.

The average time spent on the market was 46 days, slightly longer than last year’s figure of 44 days, but far shorter than the time spent on the market in 2015, which was 55 days. Closed sales were down 38 percent from one year earlier, with 8 deals completed.

“It’s not a surprise to see a decrease in closed sales at this time of year,” explained Maxavenue real estate expert Jason Forster. “But even a slight difference in that figure can make it seem like a large percentage drop. The important thing to look at is the overall picture. The average sale price is up a significant amount, and that’s because lower inventory during this time of year is driving prices higher.”

Summit Real Estate Market

Home sale prices in Summit continue their ascent over the last twelve months, with the average sale price at $1,053,762, up from $956,631 in 2016, and from $1,018,490 in 2015.

Inventory in the Hilltop City was up by 33 percent, with the number of new listings at 11.

The average number of days on the market dropped slightly. That figure decreased to 42 days, down from 45 days on the market in both 2015 and 2016. The number of closed sales — 15 — was down by six percent from last year at this time.

“We’re starting to see inventory pick up,” Jason said. “Obviously, every spring there’s an uptick in sales and inventory. The main thing that was holding people back was the unknown implications of the tax reform bill. Naturally, everybody is scared of the unknown, but now that it’s taken out of the equation, we can expect to see more activity.”