Somerset Hills High End Market

The top end of the market continues to be weak and oversupplied, despite low inventory and solid demand in the low and moderate price ranges.

Over the last few years, listings above $1 million in the Somerset Hills region were more likely to expire than result in a sale. Roughly 55% in the $1 – <$2 Million tier and roughly 2/3 of listings $2 million and up fail to secure a buyer. Pricing disconnects continue and compression is continuing, whereby the differential between top tier and moderate homes continues to narrow, as the moderate tiers are gradually increasing but high end continues to lag.

Some gradual improvement has occurred with respect to the number of contracts signed between $1-2 million, but much of this activity is concentrated at the low end of this range, homes which are non-distinctive high end family homes as opposed to the landmark real estate. While progression was seen from 2015-2017, it is unclear whether 2018 will surpass 2017’s demand rate for $1-2 million and $2 million and up continues to be stagnant.

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