Rumson Home Sales Slow Again in August

Len Dunikoski, Rumson REALTOR

Leonard “Len” Dunikoski, SRES
REALTOR Associate
Diane Turton Realtors – Rumson Office
8 West River Road
Rumson, NJ 07760

(732) 239-0739 cell       (732) 530-6686 office

ldunikoski@dianeturton.com

August was a slow month for home sales (closings) in Rumson, and was the third month in a row where 2012 sales lagged behind those in 2011:

            Jun             Jul             Aug
2011 12 16 19
2012 10 9 8

In addition, both the average and median sales prices were lower in all 3 months this year. As a result, the year-to-date figures for Rumson have taken a negative turn as well. You’ve heard me talk about the Real estate Absorption Rate in the past, and why REALTORS® feel this is such an important indicator. At the end of both June and July, the trailing 12 month Absorption Rate for Rumson homes was better (i.e., lower) in 2012 than it had been in 2011. Unfortunately this was not the case at the end of August, when the combination of fewer home sales and more homes on the market resulted in a trailing 12 month Absorption Rate of 9.8 months, compared to 8.8 months at the end of August, 2011.

Has the 2012 Rumson real estate market lost its steam? It sure looks like it at this point. As your trusted real estate advisor I’ve got to give you the bad news as well as the good, and right now although the news really isn’t “bad”, it certainly is disappointing considering the high hopes we had earlier this year. What happened? Although it’s hard to identify a single primary factor, the slowdown is probably due to the ongoing uncertainty about the stock market, the Euro, the presidential election, the potential expiration of the Bush tax cuts, etc. When people become anxious they tend to avoid risks, and many people may perceive the risk of buying or selling a home in Rumson to be too high right now.

Here’s the overall monthly chart for 8 months year-to-date:

Rumson Home Sales, January – August (8 Months Year To Date)

2011

2012

Comment

Sales (Demand)

77

69

10% fewer homes sold this year.
Listings (Supply)

68

86

27% more homes on market.
Months’ Supply (Absorption Rate)

8.8

9.8

Supply/demand getting weaker.
Average Sale $ (Value)

$1,584,035

$1,241,447

22% lower average sales price.
Median Sale $ (Value)

$1,200,000

$1,195,000

Similar median sales price.

 

If you’d like to discuss any of this information in more detail, please give me a call or send me an email. Thanks!

Len

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This entry was posted in Rumson Homes Sold, Rumson Local Expert, Rumson NJ Real Estate, Rumson Realtor, Rumson-Fair Haven. Bookmark the permalink.

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