by Janet Donofrio
July 18, 2002
Recent articles in both the Montclair Times
and the New York Times have focused on the escalating costs of housing
in Montclair. The Montclair Times dated June 13 states the obvious
to those of us who live in town -- that real estate here has become
a "seller's market."
According to the Montclair Times,
many buyers of properties in Montclair engage in bidding wars and end up
paying 109 percent of the asking price, on average. The New York Times,
May 26, states that from January 1, 2002 to May 13, 2002, 65 percent of
sales have been above the listing price. According to the New Jersey Multiple
Listing Service (MLS), the average price for a home in Montclair has risen
12 percent over the past year.
Both publications state that Montclair's
real estate values have been increasing over the last several years largely
due to the expected Midtown Direct train line to Manhattan. Real estate
agents saw the same boom in towns like South Orange and Maplewood a few
years ago when the Midtown Direct first hit there.
Rental properties, however, are not
all experiencing this same increase. An agent at Schweppe and Company states
that it's actually a renter's market when it comes to rental properties
in Montclair. She states prices have not gone up significantly in the past
year and may even have come down a bit. According to the New Jersey MLS,
there was a 9 percent increase for a one-bedroom in the first 6 months
of 2002 compared to the prior 6 months of 2001, and a 6.5 percent decrease
for a two-bedroom during the same 6 month time span. The Schweppe agent
attributes this relative stability in prices to the fact that people moving
into Montclair are really looking to buy. It's also possible that rents
increased before the original projected rail connection date, which was
mid 2001. New developers have also come into town creating new inventory,
forcing landlords to rethink their prices.
With all this said, 2 new units on South
Fullerton Avenue have just rented for $3,000 each and new apartments at
the former site of Belleclaire Lanes are expected to start at $1,800/month
for a 670 square foot, l-bedroom unit.
(Average rental prices from the NJ Multiple Listing Service)
One Bedroom
Two Bedroom
7/1/01-12/31/01
$1,016
$1,510
1/1/02-7/1/02
$1,111
$1,412
From 2001 to 2002
9% increase
6% decrease
The rental price averages shown above
are slightly higher than the two weeks worth of rental ads posted in the
Montclair
Times on July 4 and July 11, showing the average rent for a one-bedroom
is $1,004 per month and $1,386 per month for a two-bedroom apartment.
Email comments to: ics@mail.montclair.edu
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