Photo Credit: NJMLS
The Montclair housing market has been on fire for years — bidding wars, waived inspections, and homes flying off the market in a single weekend. But lately? Things are starting to shift.
Throughout Montclair, there seems to be an influx of houses for sale. With summer approaching, it seems to be as good of a time than ever to purchase a home. However, there are always questions to ask about the housing market, no matter the location.
Karin Diana, a real estate agent with Compass and a Montclair resident, spoke to the state of the market. In our conversation, we get into some of the factors driving the market and how it looks at the moment, and if it is a good time to buy a home in Montclair.
This conversation has been edited for clarity and concision.
Q: There are a lot of for sale signs around Montclair right now. Is that typical for the season?
A: It certainly appears as though there is a lot of inventory and many houses for sale because we’re in this transitional period where many of those houses are about to close. Some are just coming on the market. So when you have this confluence of different statuses of properties, it seems like inventory is abundant when, in actuality, it probably is not. 80% of the for sale signs are either under contract or about to go under contract, or are closing within days
That said, there is an increase in inventory right now, more than last year. I think buyers are reluctant to provide those outlier bids that there’s a history of in this community. There do seem to be less offers per property than even a few months ago.
Houses that should’ve gotten multiple offers weekend one were sitting for a second weekend — even in premium locations.
Karin diana – compass real estate
Q: What do you think is fueling this pause?
A: I think it’s the higher price point. Two million dollars and up, you have buyers that are watching their stock portfolios daily, and there’s some fluctuation in that. It creates some reluctance to make a big move.
On the lower end, the entry-level market, say $800 thousand to $1.5 million, you have buyers that are focused more on interest rates. The interest rates being where they are, which is 6-7%, depending on the week, are giving that lower-end buyer or starter buyer a little bit of a pause, as well.
Q: Are the days of pricing at $999k and selling for 60% above asking over?
A: The pricing strategies and behaviors of the listing agents are very nuanced. Different real estate agents use different approaches. Some agents shamelessly undervalue intentionally to draw. Traffic to a property and create multiple bids. Other agents don’t like to play what you say that game, and they price closer to value.
Q: Do you think prices are too high in Montclair?
A: No. When you compare our market with other markets in the country that offer what we have, which is proximity to Manhattan, combined with low inventory, I think the houses are selling exactly where they should.
Q: Any advice for those looking to buy a house this season?
A: There is a little bit of surplus inventory, so I think that the offers are being spread out a little bit, and because we’re not seeing those outlier offers like we were several months ago or last year, I think it’s a great time for a buyer to get into the market here in town.
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