In case you prefer to read v watch, here is the latest edition The Wilton Report — Princeton’s only dedicated real estate podcast and videocast in writing! If you’ve been following the housing market recently, you know things are getting interesting. In fact, the past month has taken "interesting" to a whole new level, both locally and nationally.
Let’s break it all down.
Inventory Woes Continue in Princeton
As we know, inventory is everything in real estate. Back in June 2024 — typically the peak season — Princeton had 57 homes for sale. Nearly half (47%) were priced above $2 million.
Fast forward to April 9, 2025:
There are only 52 active listings.
61% of those are priced above $2 million.
And only one home under $1 million, which already has offers.
Let’s be blunt: there is virtually nothing available in Princeton under $1 million. This is a serious affordability issue.
Tariffs and the National Impact
Unless you've been under a rock (which might be preferable to reading the news), you're aware of the rising tariffs and their potential impact on housing:
74% of lumber imports come from Canada.
74% of gypsum (drywall) comes from Mexico.
These tariffs could create inflationary pressure, potentially keeping interest rates higher. While rates remain moderate by historical standards, the construction industry could face cost spikes — and that’s not good news for supply.
Even conservative think tanks like the Tax Foundation predict the tariffs will raise $2 trillion in revenue but will still result in a net loss when offset by proposed tax cuts.
And if a recession follows? Rates may fall, but jobs may not hold — which further hurts buyer confidence.
National Inventory Trends
Nationally, we’re seeing positive movement:
New Jersey saw a 15% increase in inventory from March 2024 to March 2025.
California: +50%
Florida: +34%
Texas: +26%
Most of the U.S. is improving.
But not all is rosy in the Garden State.
Despite those gains, New Jersey still sits 67% below pre-pandemic inventory levels (2017–2019). In March 2017, NJ had 43,000 homes for sale. In March 2025? Just 13,100. That’s a problem.
Market Snapshots: West Windsor & Princeton
Let’s zoom into two key markets for Q1 2025.
West Windsor
Average SFH price: $908,000 (up from $808,000 Q1 last year)
Days on market: 39 (up from 20)
Sales volume: 25 homes (up slightly)
Condos/Townhomes sold: 23 (up from 14)
➡️ New construction is clearly moving inventory. Build it, and buyers will come.
Princeton
Q1 Average SFH Price: $1.764M (up from $1.369M)
Days on market: Flat (60–62)
Sales volume: Up slightly from 22 to 25 homes
List-to-sale price ratio: Over 100% across the board
Luxury market (>$2M): Strongest we've seen in years. 8+ homes sold already in Q1 — up from just 1 in 2017.
➡️ The luxury segment is booming, possibly fueled by stock market volatility and a desire to park cash in real estate.
Under $1M in Princeton: Vanishing Inventory
The under-$1M market in Princeton is almost extinct. In Q1:
Only 6 homes sold in this price range
That number was 31 in 2017
Prices are still 102% of asking
Buyers are facing fierce bidding wars, and many homes are selling well above list — including a recent example on Mt. Lucas Road that saw 5+ offers and sold $100K over asking.
What’s the Solution?
If Princeton wants to address this crisis, it’s simple:
Build condos and townhomes.
These "missing middle" homes are the key to affordability. But restrictions, limited space, and investor competition are blocking progress. A local policy restricting investor purchases in new developments could help ensure these homes go to actual residents.
Final Thoughts
The first quarter of 2025 revealed what many of us in real estate already knew: demand remains strong, inventory is historically low, and prices are climbing, especially in higher-end segments.
Whether you're buying, selling, or just trying to keep up, now’s the time to stay informed.
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More updates coming soon — thanks for reading.
