Here is what has happened in the last year for both towns. As you will see. Prices are down, inventory is down, but for 2012, I predict that demand is UP because the commute to Manhattan and the Millburn public schools are still among the best in the state and prices are still very high, incomparison to many neighboring or nearby communities. We are also seeing a spike in our Sunday open house activity, an increase in our Internet leads across many high traffic real estate websites and the first two weeks of January we had contracts and multiple offers on many local properties. In fact, a brand new listing in Short Hills for $1,150,000 at 173 Tennyson Drive, garnered 11 offers in less than a week.
The Millburn Market had fewer homes for sale and this chart breaks down the new listings coming on the market in each month, as well as the average list price (which dropped from January 2011 to December 2011), the average days on the market, the list price to sale price (although this does not include what the original list price may have been and a number of properties were reduced in price before they sold). This shows the number of closings by month ( a total of 75 homes for the year) and you can see that the market dropped significantly as we suffered setbacks from Hurricane Irene at the end of August. One thing is clear, the inventory built up towards the end of the year, the prices dropped (possibly because of an early and debilitating snow storm in late October) and prices were the highest with the most trades in the spring and lots of closings in summer, starting with the end of the school year in June.
The market in Short Hills, with much higher prices and a larger volume of inventory overall, followed similar patterns in many of the categories. The most expensive homes (over $2,ooo,ooo) came out in the spring market and the bulk of the closings took place largely over the summer months. In January the average list price was just over $1,300,000 and by the end of the year that number had dropped to $1,182,571. A similar pattern was established from the average closed prices as January started out at approximately $1,286,000 and by December the average closed price dropped to $1,218,000. From July to the end of the year there were only 2 closings at $2mm and over. The luxury market completely dropped off and there was a direct correlation to a slow down in the month of November, following the damage of the freak snow storm on October 30th. November was not a good month in comparison to other years.
For an update on the market in your neighborhood, call us and we will be happy to consult with you. 973-376-8300. With the mild winter in 2012, the market has been very active with many buyers trying to buy early and take advantage of low interest rates.