How’s the Real Estate Market in Rumson?

The main article on the front page of today’s Wall Street Journal is “Home Forecast Calls for Pain”. It says that the “experts” are predicting another 2.5% drop in the value of homes this year, and only a 1.1% increase in 2012 – 2015 (in a normal housing market, real estate increases in value by 3% to 4% a year). The article goes on to say, “Prices have already fallen 31.6% from their 2005 peak, as measured by Standard & Poor’s Case-Shiller 20-city index”.

The facts about our peninsula area show a far different story. Here are the median prices at which single family homes in Rumson sold for the past 8 years (the “median” means that half the houses sold for higher prices and half sold for lower prices; it’s considered to be a better indicator than the “average” price, which can be skewed by one or two sales that are markedly higher or lower than the others):

Year

Median Sold $

2005

$   992,550

2006

$1,147,500

2007

$1,201,550

2008

$   999,000

2009

$   995,000

2010

$1,165,000

2011

$1,197,500 thru Aug

As you can see, the single family housing market in Rumson peaked in 2007, and dropped about 17% in 2008. After remaining steady in 2009, prices increased by 17% in 2010 and another 3% so far this year. In fact, we’re very close to the 2007 high.

This is good news for home owners in Rumson, and it reflects the quality of life here on the peninsula (great schools, friendly people, etc.). People LIKE to live here, and people LIKE to move here. It’s the law of supply and demand- in parts of the country where the supply is high and the demand is low, home prices dropped significantly. Here, where supply and demand are roughly equal, homes have kept their value.

If you’re thinking about moving to this area, or if you live here and want to sell your existing house, I’d be glad to work with you. The more you know the better the decision you’ll make. Great realtors know this, and go overboard to educate and inform.

Leonard “Len” Dunikoski, SRES
Seniors Real Estate Specialist
Realtor Associate
Diane Turton Realtors – Rumson Office
https://www.ldunikoski@dianeturton.com

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This entry was posted in Fair Haven NJ Real Estate, Real Estate, Rumson, Rumson NJ Real Estate, Rumson-Fair Haven, Uncategorized and tagged , , , , , , . Bookmark the permalink.

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