How’s the Market?

The question that most real estate agents hear most often is, “How’s the Market?”. The answer depends on what the questioner means when he/she says “the market”. Is it the nationwide real estate situation? the New Jersey situation? the situation in a particular town or neighborhood? the situation in a particular type of property, e.g. waterfront. If you’re interested in investment properties, you may want to focus on those areas where home prices declined the most, and have a significant chance of rapid appreciation. If you’re a  first-time home buyer, you may be interested in homes that are on the market at a fairly low listing price. Since I concentrate on real estate in Rumson, Fair Haven and the surrounding towns, most questions I receive are for a particular town/towns, or a particular price point. As we’ve said in prior posts, there are many ways to look at “the market”. One of the best ways is to look not at the homes that are currently listed, but at the homes that actually closed in the area that you’re speaking of. Let’s take a look single-family homes in this area that were sold between January 1st and October 31st, and compare them to the same time period in 2010 (DOM = days on Market; CDOM = Cumulative Days on market; LP = Listing Price; SP = Selling Price). Let’s look specifically at single family homes in Fair Haven, column by column. More homes sold this year (66) than in the same time period last year (49), and in fewer average Days On the Market (89 vs. 97). The listing prices, sold prices and median prices were very slightly lower in 2011 than in 2011 (average selling prices were less than 1% lower in 2011 than in 2010). The percentage of the Selling Price divided by the Listing Price remained at 95% for both years.

Fair Haven

# Sold

Avg List

Avg Sold

Avg DOM

Ave CDOM

Median Price

%SP/LP

               
2010 49 $781,204 $741,696 97 109 $660,000 95%
2011 66 $770,365 $735,552 89 100 $645,500 95%
               

Little Silver

# Sold

Avg List

Avg Sold

Avg DOM

Ave CDOM

Median Price

%SP/LP

               
2010 67 $748,414 $700,523 116 123 $550,000 94%
2011 51 $634,060 $595,029   91   99 $495,500 93%
               

Oceanport

# Sold

Avg List

Avg Sold

Avg DOM

Ave CDOM

Median Price

%SP/LP

               
2010 38 $658,486 $621,006 117 136 $487,500 94%
2011 44 $602,311 $562,304 115 121 $485,500 93%
               

Rumson

# Sold

Avg List

Avg Sold

Avg DOM

Ave CDOM

Median Price

%SP/LP

               
2010 78 $1,344,504 $1,241,859 104 107 $1,165,000 92%
2011 92 $1,705,522 $1,489,974   92   96 $1,117,500 87%
               

Do the same thing for Little Silver, Oceanport and/or Rumson). Except for Little Silver, more homes sold this year than last; in all 4 towns, homes were on the market for fewer days; only in Rumson did the %SP/LP decline significantly (from 92% to 87%, but this was offset by higher Listing Prices and Selling Prices). We could look at some of the surrounding towns (Red Bank, Sea Bright, Monmouth Beach, etc.) if we were interested in those markets.

So how do we answer the “How’s the Market?” question? Looking just at the numbers above, I’d say that the market is neither very good nor very bad. There are some signs that the market may be recovering, but there are other signs that it’s not recovering. So what do we do? We look at another very good market indicator, and that’s the Real Estate Absorption Rate; we’ll do that tomorrow.

Leonard “Len” Dunikoski, SRES
Realtor Associate
Diane Turton Realtors- Rumson Office
8 West River Road
Rumson, NJ 07760
(732) 530-6686 (office)
(732) 239-0739 (cell)

Advertisements
This entry was posted in Fair Haven NJ Real Estate, Fair Haven Real Estate, Fair Haven Realestate, Little Silver Homes Sold, Oceanport Real Estate, Real Estate, Rumson Homes Sold, Rumson Real Estate, Rumson Realestate and tagged , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s