As predicted, July was a great month for Rumson real estate (https://rumsonfairhavenhome.wordpress.com/2013/07/26/july-will-be-a-great-month-for-rumson-home-sales/). Only 9 homes sold in July last year, but 20 sold this year. In addition, the median home price increased from $935,000 last July to $1,372,750 (+47%) this July. Finally, for the homes that sold, the average number of cumulative days on the market (CDOM) decreased from 137 days to 71 days.
July’s strong showing improved Rumson’s 2013 Year-to-Date statistics, but we still have a mixed picture:
Sales: 61 in 2012, 72 in 2013 (+18%)
Listings: 69 in 2012, 70 at the end of July 2013 (+3%)
Median Sales Price: $1,150,000 in 2012, $1,085,000 in 2013 (-6%)
Absorption Rate: 8.0 months in 2012, 6.2 months now (stronger Demand vs. Supply)
Although the median home price still lags behind last year’s, remember that at the end of June it was 7% lower, and at the end of May it was 15% lower than at the same time last year. The significantly stronger real estate absorption rate is predicting that sales prices will rise in the near future. Let’s see if that prediction turns out to be correct- we still haven’t seen the impact that higher mortgage rates may have on the market. Will we see an increase in home buyers trying to lock in the present rates before they rise again, or will rates increase more quickly than expected (and reduce the size of the home mortgages that buyers can afford)?
P.S.: This is my 200th blog post- hope you’re enjoying them.
Leonard “Len” Dunikoski, GRI
Diane Turton Realtors – Rumson Office
8 West River Road
Rumson, NJ 07760
(732) 239-0739 (cell) (732) 530-6686 (office)