Montclair Real Estate Market Heating Up With Summer

There's good news for Montclair home owners. Real estate agents say they've seen an uptick in the property market over the past few months.

They note that buyers are willing to participate in bidding wars again with many expressing interest in higher priced homes.

"My sense is that buyers have not only recognized greater affordability in the Montclair housing scene, but have been galvanized by historically low interest rates and, overall, are less fearful of the idea of purchasing," said Roberta Baldwin, partner, Keller Williams NJ Metro Group.

But she emphasized that, although buyers will engage in bidding wars again, they still won't overlook structural, systemic, or environmental issues found during inspections.

"They are requiring proper correctives or appropriate closing credits or will walk away," Baldwin added. "So, in that regard, with this hopeful opening up of the Montclair market after several dismal years, selling a house isn't a slam dunk by any means.

"Houses that need serious updating are the most difficult to market right now, because while today's buyers may more easily obtain financing, they may not be flush with the cash it takes for the big kitchen and bath makeovers that make the switch to suburbia worth it for them," she said.

Adriana OToole, broker, RE/MAX Village Square, said she's a bit short on listings at the moment.

"If a house is in great shape ... neat, clean, and attractive to the buyers, it has a good chance of getting sold," she said. "Kitchens and baths are still the important parts. Either the price has to reflect this or the seller has to reconsider the price.

"I think August will be busy," she added.

Richard Stanton of Stanton Realtors agreed that there was a slight increase in Montclair activity last month—especially when it came to houses priced between $850,000 and $1.2 million.

According to the Garden State MLS, there are now only 11 houses available in that price range versus 10 under contract. The active inventory dropped to 193 on June 30, 2012 from 206 on May 31, 2012. That's down from 296 on June 30, 2011.

As expected, Stanton said that closings were up in June with 44 houses sold. He cited a median sales price of $620,000.

"This is a good bit higher than the median price of $449,900 for homes currently for sale," he said. "There are still a good number of active buyers, with some still looking to move in before fall, while listings continue to come on, but at a much slower pace."

Stanton noted that the rental market has been especially faced pace with one- and two-bedroom apartments in very short supply.

"All listings we post are bombarded in inquiries," he said. "There are a lot of young couples and singles moving to Montclair as a cheaper alternative to New York and Hoboken. Maybe it's a good time to buy a multi-family as I foresee this trend continuing."

What do you think of the property market in Montclair? Is it getting better? Let us know your thoughts in the comments section below.