There are 4 key objective real estate indicators for every market: number of sales (i.e., demand), number of listings (i.e., supply), average/median selling price and real estate absorption rate. Here’s a look at those 4 numbers for the period between January 1st and October 31st.
The number of Rumson home sales increased 18% (from 82 a year ago to 97 now). An increase in home sales normally drives prices higher.
The number of Rumson listings increased 24% (from 62 a year ago to 77 now). An increase in listings normally drives prices lower.
The average selling price increased 3% (from $1,234,111 a year ago to $1,270,806 now), but the median selling price decreased 6% (from $1,197,500 to $1,125,000).
The real estate absorption rate, which was 9.0 months a year ago, is now 6.2 months. As you know from my previous posts, the real estate absorption rate is a calculation of how long it would theoretically take to sell all of the houses now on the market, assuming that homes continue to sell at the rate they have in the past 12 months.
An absorption rate of greater than 7 months is considered a “buyer’s market”, a rate of between 5 and 7 months is considered a “normal market”, and a rate lower than 5 months is considered a “seller’s market”. So a year ago Rumson was in a “buyer’s market” but now we’re in what’s considered a “normal market”. Although this is good news for Rumson home sellers, the news is even better in neighboring Fair Haven, which has an absorption rate of 3.3 months (and which from that perspective is one of the hottest 20 real estate markets in the state).
Although we’ve had our first snow flurries, the Rumson real estate market is still active. Interestingly enough, of the 6 homes that sold (closed) so far in November, three of them were on Ridge Road (#68 for $440,000; #78 for $1,100,000; and #91 for $1,750,000).
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