Greater Princeton Area Q3 2019 Real Estate Market Update

MARKET UPDATE Courtesy of Callaway Henderson Sotheby’s International Realty

2019 Third Quarter Greater Princeton Area Residential Real Estate Market Analysis

11 Sea Island Court | Skillman, NJ 08558 (Montgomery Township) $999,000

Here we are, now well into Fall 2019 with not only a chance to look back on Q3 here in the greater Princeton area real estate marketplace, but also with 18+ months’ worth of data to see the real impact of the Tax Cuts & Jobs Act that went into effect January 2018. The loss of S.A.L.T. deductibility has, in fact, slowed real estate markets in high tax states, of which New Jersey is certainly one. This shouldn’t come as a surprise. Buyers have a budget for what they can spend on a home on a monthly basis; if carrying costs become too expensive, the sale price is the element most subject to change in order to balance things out. While this impact is more readily seen in municipalities where the average sale price is lower, and where homeowners are more budget-conscious, there has been the added benefit of extremely low interest rates to help offset this effect. The result is inconsistent data within these pages.

You will see that Princeton, for example, is reporting more transactions and a higher average sale price than a year ago. But those statistics don’t take into account increased inventory and the important notion that the number of sales above $2 million have picked up because those prices have come down to meet the market, thereby ‘raising’ the average sale price. Perhaps a more telling data point is that properties in Princeton sold, on average, at 21% above their tax assessed value last year, and that number has fallen to 13% this year. Pricing recalibration is not necessarily a bad thing as it reestablishes the marketplace, and it has served to do so in Princeton this year.

Buyers are willing to get into the market as long as they perceive value—that’s the bottom line. While the market is being redefined in Princeton, other markets still in transition have a lot to offer in terms of value as well. Hopewell is a good example of lower prices producing some incredible opportunities. The Montgomery and West Windsor markets remain resilient, benefiting statistically from a diverse range of housing inventory (including condos and townhomes)—as well as from coveted schools, of course.

It’s a lot to take in, but we are here to help. Please contact your favorite Callaway Henderson Sotheby’s International Realty agent to answer any questions or provide guidance as to how this information impacts your individual situation. We pride ourselves in being the local market experts and look forward to helping in any way we can.

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Pricing starts at $639,900. Click on the floor plans below to view listing details for each model:

PRINCETON $1 MILLION & UNDER

Available: 133 Lambert Drive | Princeton, NJ 08540 $875,000

Units Sold

Q3 2018 Q3 2019 % Change 50

Average Sales Price $693,440 49 Days on Market

62

+24.00 %

$742,321

+7.05 %

53

+8.16 %

Units Sold

Q3 2018 Q3 2019 % Change 32

31

Average Sales Price $1,339,340 $1,388,531 77 61 Days on Market

-3.13 % +3.67 % -20.78 %

PRINCETON $1 MILLION TO $ 2 MILLION

Available: 56 Edgerstoune Road | Princeton, NJ 08540 $1,850,000

PRINCETON $2 MILLION AND OVER

Available: 63 Greenhouse Drive | Princeton, NJ 08540 $2,600,000

Units Sold

Q3 2018 Q3 2019 % Change 3

8

Average Sales Price $2,566,667 $2,569,375 31 150 Days on Market

+166.67 % +0.11 % +383.87 %

MONTGOMERY TOWNSHIP

Available: 33 Sycamore Lane | Skillman, NJ 08558 (Montgomery Township) $600,000

Units Sold

Q3 2018 Q3 2019 % Change 84

Average Sales Price $740,523 57 Days on Market

86

+2.38 %

$677,961

-8.45 %

69

+21.05 %

Units Sold

Q3 2018 Q3 2019 % Change 12

Average Sales Price $499,408 156 Days on Market

13

+8.33 %

$540,865

+8.30 %

97

-37.82 %

PENNINGTON BOROUGH

Available: 30 West Delaware Avenue | Pennington, NJ 08534 $725,000

HOPEWELL BOROUGH

Available: 27 Hart Avenue | Hopewell, NJ 08525 $420,000

Q3 2018 Q3 2019 % Change 6 Units Sold Average Sales Price $581,167 46 Days on Market

9

+50.00 %

$380,044

-34.61 %

65

+41.30 %

Units Sold

Q3 2018 Q3 2019 % Change 97

Average Sales Price $520,732 69 Days on Market

77

-20.62 %

$524,498

+0.72 %

60

-13.04 %

HOPEWELL TOWNSHIP

Available: 10 Arvida Drive | Pennington, NJ 08534 (Hopewell Township) $850,000

WEST WINDSOR TOWNSHIP

Available: 1 Hanover Court | Princeton, NJ 08540 (West Windsor Township) $570,000

Units Sold

Q3 2018 Q3 2019 % Change 120

Average Sales Price $633,367 35 Days on Market

110

-8.33 %

$640,415

+1.11 %

50

+42.86 %

CRANBURY TOWNSHIP

Available: 3 Shady Brook Lane | Cranbury, NJ 08512 $1,200,000

Units Sold

Q3 2018 Q3 2019 % Change 15

Average Sales Price $588,900 54 Days on Market

9

-40.00 %

$809,778

+37.51 %

88

+62.96 %

WEST WINDSOR, PLAINSBORO AND CRANBURY COMBINED

Available: 5 Mahogany Court | Plainsboro, NJ 08536 $919,000

Units Sold

Q3 2018 Q3 2019 % Change 201

Average Sales Price $568,854 45 Days on Market

181

-9.95 %

$598,154

+5.15 %

54

+20.00 %

Units Sold

Q3 2018 Q3 2019 % Change 137

Average Sales Price $350,034 44 Days on Market

116

-15.33 %

$324,380

-7.33 %

52

+18.18 %

LAWRENCE TOWNSHIP

Available: 38A Carter Road | Princeton, NJ 08540 (Lawrence Township) $1,300,000

ROBBINSVILLE TOWNSHIP

Available: 11 Jonathan Drive | Robbinsville, NJ 08691 $900,000

Units Sold

Q3 2018 Q3 2019 % Change 82

Average Sales Price $435,823 Days on Market

48

71

-13.41 %

$449,407

+3.12 %

68

+47.83 %

LAMBERTVILLE

Available: 95 Clinton Street | Lambertville, NJ 08530 $839,000

Units Sold

Q3 2018 Q3 2019 % Change 14

Average Sales Price $450,866 Days on Market

110

15

+7.14 %

$517,810

+14.85 %

58

-47.27 %

Luxury Lives Here

One-of-a-kind townhomes and condominiums in the heart of downtown Princeton – distinctive residences featuring grand master bedrooms, contemporary kitchens, and spa-style baths.

Own or rent to live in the center of it all.

PALMERSQUARERESIDENCES.COM TO OWN: 609.921.1050 ❖ TO RENT: 609.921.2333

ON THE COVER 6 Stout Road | Princeton, NJ 08540 (Hopewell Township) $1,295,000

EACH OFFICE IS INDEPENDENTLY OWNED AND OPERATED. LISTINGS SUBJECT TO ERRORS, OMISSIONS, PRIOR SALE OR WITHDRAWAL WITHOUT NOTICE. STATISTICS SOURCE: BRIGHT MLS 10/8/2019. INFORMATION DEEMED RELIABLE BUT NOT GUARANTEED.