Market Advance in Place
Summit, NJ real estate has been improving for some time despite what some skeptics suggest. The market actually hit bottom back in 2008 when a fiscal crises plunged the economy into a tailspin and made credit almost impossible to obtain. Under such circumstances, houses naturally became hard to sell and prices ratcheted steadily downward even as homes lagged on the market for interminable periods. At least that is how it felt for owners that really needed to sell.
Home sales started to pick up in 2009 although prices fell by 4% from the year before. That still left the average selling price at $930,999. The market continued to advace in 2010 and 2011 with averages now standing at well over $one million. This demonstrates how Summit (no pun intended) is at the top of the scale for prices in the region. Sellers in that year were pleased to find that they received on average that year of 98% of the price asked for.
8 homes sold for less than $500,000 in Summit in 2009. 2 sold for between $500,000 and $600,000. 6 sold for between $600,000 and $700,000. 4 sold for between $700,000 and $800,000. 3 sold for between $800,000 and $900,000. 3 sold for between $900,000 and $1,000,000. 5 sold for between $1,000,000 and $1,500,000. 3 sold for between $1,500,000 and $2,000,000. 4 sold for more than $2,000,000. For 20010 and 2011 there were again between 40 and 50 homes sold each year with comparable price range distribution.
There are multiple reasons for the high values to be found in Summit, NJ real estate. Among these are the attractive mix of home styles and lots that feature stunning views of the countryside as well as the distant skyline of New York City. The local schools have excellent ratings particularly Summit High School which has one of the highest rankings in the state. The Midtown Direct Train Express deposits Summit residences at Penn Station near the heart of New York City’s Financial District in a mere 20 minutes.
A Tradition of Value
Summit has long been known to cater to the high end of the housing market. The median price for a home in 2008 was almost $700,000. Property taxes for a home with this sort of valuation will be about $16,000. Zoning ordinances require lots to be substantial in size keeping values high and density low. These statutes also had the effect of keeping out apartment buildings and multi family structures. More recent valuations show prices holding steady with an upswing iin the early months of 2012 bringing signs of a resumption of price gains.
Even the YMCA in Summit appears plush with an assortment of gyms, weight rooms, ball courts, and two swimming pools. The limited numbers of modestly priced homes are eagerly sought after by middle income families wishing to take advantage of the excellent schools to be found locally.
Summit, NJ real estate never did suffer the drastic downturn encountered in so many spots across the state and throughout the country. The exclusivity of the area and high prices has always limited the potential range of buyers to those at the upper end of income. Such a clientele is better protected from slowdowns.