Little Silver Home Sales Up, but Prices Remain Flat

Many people who live in Rumson or Fair Haven decide to downsize after their kids leave home, and they’d prefer to stay on the peninsula or at least close by. Periodically we’ll take a look at some of the surrounding towns, especially Little Silver, Monmouth Beach, Oceanport, Red Bank, Sea Bright and Shrewsbury. Let’s first look at Little Silver.

Right now there’s good news for both Little Silver home sellers and home buyers. At the end of the 3rd quarter, sales of single-family homes were up 15% compared to the same period last year. In addition, there are 7% fewer homes listed on the market compared to a year ago. Although this combination (more sales, fewer listings) normally predicts higher home prices in the future, that hasn’t happened yet. In fact, the median sales price (the point at which 50% of the homes sold for more money and 50% sold for less) is down 3%.

Little Silver home sellers can be happy that homes are selling faster, and Little Silver home buyers can be happy that prices are remaining stable. Although no one knows what the future will bring, the real estate absorption rate is signaling the end of the “buyer’s market” in town. If you’ve read my prior columns you know that the absorption rate is a calculation of the number of months it will take to sell all of the houses that are currently on the market, assuming that home sales continue at the rate they’ve been selling in the past year. An absorption rate of greater than 7 months is considered a “buyer’s market”, while a 5 – 7 month rate is considered a “normal market” and a rate less than 5 months is a “seller’s market”. The latest Little Silver real estate absorption rate is 7.1, right at the edge of a “normal market”. Here are the numbers:

Little Silver Home Sales, January – September (9 Months Year To Date)

2011

2012

Comment

Sales (Demand)

48

55

15% more homes sold.
Listings (Supply)

46

43

7% fewer homes on market.
Months’ Supply (Absorption Rate)

8.2

7.13

Demand vs. Supply is improving.
Note: this is the latest 12 month number
Average Sale $ (Value)

$589,010

$595,805

1% higher average sales price.
Median Sale $ (Value)

$512,500

$495,000

3% lower median sales price.

Although the weather’s turning colder there still are homes that go on the market in the 4th quarter every year. If you’re looking to buy a house, take advantage of the Sunday public open houses and see some of what’s currently for sale. If there’s a “Consumer Information Statement” at the open house, take one and make sure you read and understand it. Remember that the REALTOR® at the open house is acting on behalf of the seller.

What if you see a house for sale that looks good to you? Here’s where I disagree with many of my colleagues. My recommendation is that as a buyer you should NOT call the listing agent (even if it’s me), because she/he has a fiduciary responsibility to get the highest price for the seller. As a buyer, you want to be represented by a REALTOR® who will act as a “buyer’s agent”, and whose fiduciary responsibility is to get the lowest price for you, the buyer. Wouldn’t you agree?

Note: I wrote this article; these are my personal views and do not necessarily reflect the views of Diane Turton, Realtors.

Len

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

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This entry was posted in Fair Haven Real Estate, Fair Haven Realtor, Little Silver Homes Sold, Rumson Real Estate, Rumson Realtor. Bookmark the permalink.

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