Montclair's Spring Real Estate Market Hasn't Sprung Yet

To hear Realtors tell it, this is not your typical spring market. Some homes are being reduced by $50,000 to $100,000 in Montclair after sitting for weeks; others are simply not moving due to unrealistic pricetags.

"In short, sell-through is low, meaning buyers are cautious and don't see value and don't want to fix/remodel anything major and many of our vintage homes need a good deal of updating, as they always have, to reflect current tastes," said Roberta Baldwin at The New Keller Williams NJ Metro Group.

She said that—while spring historically is the season for selling—it's also the season for holidays, making summer plans, and for performing garden maintenance.

"So, in the best of times, the real estate market competes with many worthy activities," Baldwin said.

Baldwin and others say that homes priced above $1 million in Montclair are selling fairly well.

But she said there's a lot of inventory when it comes to the true sweet spot of Montclair real estate—properties priced between $600,000 and $1 million.

It "may take months to reduce that inventory—and we're still seeing more houses coming on," Baldwin said. "One thing this definitely isn't the season for: unmotivated sellers who tell their agents from square one that they don't have to sell or that they'll pull their homes off the market if they don't get their price.

"These are the listings that reflect poorly on our absorption rate in a challenging market and help create the current situation," she said.

Jeffrey Otteau of the Otteau Valuation Group in East Brunswick recently told a seminar for real estate agents that the market will improve—but only gradually and over a long period of time.

He said that challenges in the housing market include a lack of job creation and a high number of forelosures adding to the supply of homes on the market.

Otteau predicted a 4 percent decline in property prices in New Jersey this year because of an oversupply of inventory on the market, but he expected a less serious drop in prices in more affluent suburban communities.

Below is a real estate market chart comparing recent activity in Montclair with some surrounding towns. (UC means "under contract.")

Absorption Rate Chart: April 18th, 2011

Montclair

Glen Ridge

Bloomfield

Cedar Grove

W. Orange

Maplewood

S. Orange

Active

197

33

247

71

369

169

149

New this week

9

3

12

4

24

13

13

UC this week

12

2

3

4

9

14

2

UC this month

32

8

26

10

39

39

11

Absorption rate

6.16

4.13

9.5

7.1

9.46

4.33

13.55