Prominent Property Sotheby's International Realty's regional Summit office provides an inside look at the Summit real estate market, utilizing Garden State Multiple Listing Service statistics illustrating the numbers and trends that tell the story.
This edition of the Summit Real Estate Report details information from July and August, 2020.
The Key Observations
The suburb of Summit has seen a significant increase in buyers moving from densely-populated areas -- such as Brooklyn and Jersey City. The result is very low inventory levels and an influx of buyers, with many homes seeing multiple offers and moving quickly to close.
Overall, New Jersey is on track to realize an 8% increase of homes sales in 2020 compared to 2019. Those figures are backed by Dr. Larence Yun, chief economist for National Association of Realtors, who also projects an 8% increase in home sales for 2021. Yun added that 25% of the work force will have a more flexible work schedule, with the ability to work from home. This work-from-home ability is giving fuel to the secondary housing market.
Recent data from the Mortgage Bankers Association showed home purchases applications were up more than 30% year-over-year, and that buyer demand will continue into 2021. These numbers indicate a strong pipeline of demand into 2021.
Mortgage rates remain at all-time lows, providing more buying power for buyers and fueling the housing market.
Active Listings: 89 compared to 115 in 2019 / -22.61%
Under Contract: 83 compared to 40 in 2019 / +107.50%
Average List Price: $1,196,789 compared to $1,116,995 in 2019 / +7.1%
Average Price that Closed: $1,170,769 compared to $1,079,486 in 2019 / +8.4%
Average Days on Market: 53 compared to 46 in 2019 / +15.2%
Sales Price to Original List Price: 97.54% compared to 97.43% in 2019 / 0.12%
Highest Price Home Sold in July 2020: $3,413,000
Rate of Absorption*
3.28 months compared to 4.50 months in 2019 / -27.11%
Both July 2019 and 2020 July are considered a 'sellers market'
*The Absorption Rate is a term most commonly used to evaluate the rate at which available homes are sold in a specific market during a given time period.
Active Listings: 80 compared to 111 in 2019 / -27.93%
Under Contract: 63 compared to 32 in 2019 / +96.88%
Average List Price: $1,296,789 compared to $1,206,423 in 2019 / +7.4%
Average Price that Closed: $1,283,512 compared to $1,158,279 in 2019 / +10.8%
Average Days on Market: 50 compared to 48 in 2019 / 4.1%
Sales Price to Original List Price: 98.1% compared to 97.38% in 2019 / + < 1%
Highest Price Home Sold in August 2020: $3,150,000
Rate of Absorption*
2.20 months compared to 3.38 months in 2019 / -27.11%
While August 2019 was considered a sellers market, August 2020 was considered a very strong sellers market.
Prominent Properties Sotheby’s International Realty offers a team of more than 625 licensed professionals and staff working out of 14 offices throughout Northern and Central New Jersey. Regional Offices are located in Summit, Short Hills, Alpine, Edgewater, Englewood Cliffs, Franklin Lakes, Jersey City, Hoboken, Montclair, Montville, Ridgewood, Saddle River, Tenafly and Westfield.
For more information about Prominent Properties Sotheby’s International Realty, visit prominentproperties.com, call the Summit regional office at 908-273-8808, or stop by at 309 Springfield Avenue.