Available: 563 Cherry Valley Road, Princeton, NJ 08540 (Montgomery Township) $2,300,000
The fireflies are out, gardens are in full bloom, and summer is officially underway in the Greater Princeton Area, which means it’s time for a mid-year check-in on the local real estate market.
The first half of 2025 has been marked by a gradual market evolution that defies most national real estate headlines. We started the year with limited inventory, and for the most part that remains the case in our local market. Market breadth has narrowed some—so while move-in ready, well-priced homes continue to command strong interest (often with multiple offers), properties that are overpriced or need updating may find buyers exercising more patience.
Even with a backdrop of global economic uncertainty, our local market has remained remarkably steady. Callaway Henderson Sotheby’s International Realty is proud to be leading the way once again, ranking as the #1 brokerage in Mercer County through the first half of 2025 in total dollar volume sold. It’s a reflection of the relationships we’ve built and the expertise we bring to every transaction.
As you dive into this report, you’ll notice that the story still varies by town. Princeton’s inventory remains historically tight, supporting high prices and fast-moving deals. In Hopewell Township and West Windsor, new construction continues to influence market dynamics, while Pennington’s averages remain sensitive to smaller sample sizes and an influx of midpriced listings. Real estate here is nothing if not hyper-local, and understanding these kinds of community-level trends is more important than ever.
Interest rates are settling into the mid- to upper-6% range, which has become the new baseline, and buyers are adapting. The days of ultra-low rates are behind us, but confidence remains solid.
The high end of our local market is experiencing its best year ever. Contract sales of properties priced at $3,000,000+ are at 17 (and counting!) for the year, which eclipses last year’s record high of 14 such sales—and we still have 5+ months to add to this record number. It will be noteworthy to see whether a shift of the ‘mansion tax’ from the buyer to the seller on deals above $1,000,000, and a graduated increase of that burden based upon price point, may impact the market by limiting higher end inventory. While this additional tax impacts sellers’ bottom lines, it may serve to further elevate prices. Time will tell…
As always, thank you for your interest and continued trust. Your Callaway Henderson Sotheby’s International Realty agent is just a call, text, or email away—ready to guide you through this evolving landscape with market insight, proven strategy, and a personal touch.
*Source: TrendGraphix: 1/1/2025 - 6/30/2025, as of July 10, 2025.
