When we looked at the 4 month year-to-date Rumson real estate market last month (https://rumsonfairhavenhome.wordpress.com/2013/05/02/8-things-you-need-to-know-about-the-current-rumson-real-estate-market/), the median sales price had declined 3% compared to a year ago. However, the market this May was a lot weaker than in May 2012, with fewer sales and at lower prices. The combination dragged the 5 month year-to-date median home price ($1,070,000) down by 12% compared to a year ago.
In addition to the decline in the median price, the average sales price ($1,108,564) was down 15% compared to a year ago. When we’re talking about 40 sales, a few “outliers” can influence the mathematical average more than the median, so I prefer to focus on median prices. If you’re looking to buy a house in Rumson, the decline in prices is good news.
The only bright spot for Rumson home sellers was that the number of homes on the market continues to decrease; it was down 9% at the end of April and was down 12% at the end of May. Prices tend to go up when fewer homes are on the market.
Here are all of the numbers:
|Rumson Home Sales, January 1 – May 31|
|Sales (Demand)||42||39||7% fewer sales|
|Listings (Supply)||75||66||12% fewer listings.|
|Months’ Supply (Absorption Rate)||6.8||7.2||Demand vs Supply slightly weaker.|
|Note: this is based on the past 12 months|
|Average Sale $ (Value)||$1,300,705||$1,108,564||15% lower average sales price.|
|Median Sale $ (Value)||$1,210,000||$1,070,000||12% lower median sales price.|
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