Montgomery Township is located on the northern border of Princeton, but at the southern end of Somerset County.  Although it has not suffered as much from the subprime crisis as Somerset County overall, it is not as strong a market as its neighbor on the northern border, Hillsborough, which though experiencing volume decline, has seen prices increase slightly.

For the year through September 30, Montgomery has experienced a drop in sales volume of more than 18%, compared to the same period last year, just as the subprime crisis hit.  Price changes have been minimal, but in the downward direction.  The average sale price through the third quarter this year is 2.7% less than last year for the same period, although the median sale price is virtually unchanged ($550,500 this year vs. $550,000 last - a miniscule increase this year).

There are significantly fewer listings available this year in Montgomery on October 1 - 117 vs. 142 last year, but a few more listings were taken in September 2008 than 2007.  With a lower number of sales reported in September, the supply/demand ratio is down compared to 2008.  The absorption rate climbed a full month since August - to 8.4 months, a market usually considered to favor buyers.

With the current financial troubles, buying or selling a home in Montgomery Township should not be done without a solid knowledge of the market.  Be sure to seek the advice and counsel of a Realtor® who is familiar with the market.

Montgomery Township, comprising the postal codes of Belle Mead, Skillman and part of Princeton, is a very volatile real estate market.  Since it is rather small, with fewer than 300 sales per year, even a slight increase or decrease in units can have an apparently large impact.  In August, for example, the absorption rate jumped from 4.1 months to 7.4 months, and the supply/demand ratio dropped from 72% in July to 55% in August.  If we look at this year through August, we see an average supply/demand ratio of 52% and an average absorption rate of 7.8 months, both numbers better than Somerset County as a whole.

Prices are another story.  The average sale price in 2007 was $618,180, the median $557,500.  This year the average sale price is $586,519, off about 5% from last year, and the median is $525,000, off nearly 6% over last year.  This is the third straight year of price declines.  The Montgomery market may still be trying to find a bottom, but when it does, it won't last long.

If you're thinking about buying or selling in Montgomery Township, call someone who knows the market.

Montgomery Township, just north of Princeton, New Jersey and including the areas of Skillman, Belle Mead and Blawenburg, was one of the first markets to get hit two years ago when the market turned south.  It is now one of the shining lights in Somerset County, even outshining Hillsborough.  Although the supply/demand ratio is not what it was in June, the numbers look good.

A year ago on August 1, there were 165 properties available, this year just 135.  At that time the supply/demand ratio (remember this was before the crash of the mortgage market) was 59%, now it is 72% - a significant improvement.  A year ago the absorption rate was 4.7 months, it is now 4.1 months.  Last year 35 sales were written in July, this year 33, and 33 properties closed this year in July, compared to 25 last year in July.

The bad news is that total closed sales are down from 130 last year, to 117 so far this year.  The volume of sales is off from last year, but in 2006, there were even fewer - 111.  The average sale price in 2007 was $618,180, this year so far it is just $587,902.

In spite of all this, it has to be said that Montgomery is a strong market, bordering on the "hot sellers' market."  Remember, that it is a small market (fewer than 300 sales per year), so a few sales one way or another can have a big impact.  Nevertheless, Montgomery is well on its way to recovery.