The other 3 towns that share the peninsula with Rumson and Fair Haven are Little Silver, Shrewsbury and Red Bank, so we like to keep an eye on the real estate markets there. Earlier this month we reported that 2012 median home prices were up 6% in Rumson (median = $1,200,000) and 3% in Fair Haven (median = $662,000), and it might be natural to assume that home prices were rising in Little Silver as well. Here’s what the statistics show:
|Little Silver Home Sales, January – November (11 Months Year To Date)|
|Sales (Demand)||57||63||11% more homes sold.|
|Listings (Supply)||48||40||17% fewer homes on market.|
|Months’ Supply (Absorption Rate)||8.7||7.1||Almost back to a normal market.|
|Note: this is the latest 12 month number|
|Average Sale $ (Value)||$584,710||$579,520||1% lower average sales price.|
|Median Sale $ (Value)||$480,000||$480,000||Same median sales price.|
Historically the median prices of Little Silver homes are lower than those in Fair Haven, and we’re still seeing that (2012 Little Silver median = $480,000). However, unlike Rumson and Fair Haven, the median price hasn’t increased- it’s the same as it was 12 months ago. With the number of sales Little Silver up by 11% and with 17% fewer listings on the market, we would have expected home prices to rise. They haven’t so far, but I expect that they certainly will in 2013. I make this prediction based on the decrease in the all-important real estate absorption rate. If you’ve been following my posts you know that the real estate absorption rate is a calculation of the time it would take, in months, to sell all the homes now on the market if homes continue to sell at the rate they have in the past 12 months. If math isn’t your bag, hang on- we’re almost done with the discussion.
The Little Silver real estate absorption rate decreased from 8.7 months a year ago to 7.1 now. If you recall, in a “normal” real estate market the absorption rate is between 5 and 7 months; greater than 7 months indicates a “buyer’s market” and a rate less than 5 months indicates a “seller’s market”. The bottom line is that we’re almost back to a “normal market” in Little Silver! That’s why I feel this is a great time to buy a home in Little Silver.
If you know someone who’s looking to buy a home in our area at a price point near $500,000 tell them to consider Little Silver. The school system is excellent (they’re classified by the state Department of Education http://www.state.nj.us/education/finance/sf/dfg90.shtml as an “I” District Factor Group), they’re right on the North Jersey Coast rail line, and they’re close to the shore, the Garden State Parkway, downtown Red Bank and all of the other things that make this such a great place to live. I’d be glad to help find the perfect home for anyone who’s looking in Little Silver- just have them email or text me and I’ll get right back to them.
Of course, I’d also be glad to represent anyone who’s considering selling their Little Silver home.
Leonard “Len” Dunikoski, GRI
Diane Turton Realtors – Rumson Office
8 West River Road
Rumson, NJ 07760
(732) 239-0739 (cell) (732) 530-6686 (office)