We still haven’t had 20 homes sell in either Rumson or Fair Haven this year, so let’s take a look across the river to Middletown. With all of the snow that we had in February, perhaps it’s not a surprise that it was a slow month for real estate. For Middletown, only 19 homes sold (closed) in February, compared to 32 last February. Year-to-date, 29% fewer Middletown homes sold in 2014 than in 2013.
The good news for Middletown home sellers is that the other 3 key real estate indicators are unfavorable. Year-to-date, the median sales price increased 13% compared to a year ago (from $337,500 to $380,000), and there were 7% fewer homes on the market; prices tend to rise when fewer homes are for sale.
The good news for Middletown home buyers is that the real estate absorption rate says we’re still in a “normal market”, falling from 6.5 months to 5.6 months. The absorption rate is a calculation of how long it would take to sell all of the homes listed for sale, assuming that sales continue at the same rate as they have in the past 12 months. An absorption rate of 5 -7 months is considered a “normal market”, and a rate less than 5 months is considered a “seller’s market”.
Here are the 4 key objective real estate indicators in tabular form:
|Middletown Home Sales, Jan 1 – Feb 28|
|Sales (Demand)||66||47||29% fewer homes sold.|
|Listings* (Supply)||301||281||7% fewer homes on market.|
|Months’ Supply* (Absorption Rate)||6.5||5.6||Stronger demand vs. supply.|
|*based on the past 12 months|
|Median Sale $||$337,500||$380,000||13% higher median sales price.|
If you’re thinking about buying a home in Middletown, use Trulia to find houses you like in your price range but remember my recommendation: DON’T CALL THE LISTING AGENT (even if it’s me) to show you a house. The Listing Agent works for the Seller, and has a fiduciary responsibility to negotiate the highest price for the owner. You want to deal with a REALTOR® who serves as your Buyer’s Agent, and who has a fiduciary responsibility to negotiate the lowest price for you. It would be my pleasure to represent you in that capacity, whether you’re a first-time home buyer or one who’s had many homes. Please text me or give me a call.
(732) 239-0739 (cell) (732) 530-6686 (office)