Yesterday we looked at the 4 key, objective real estate indicators for Rumson, and today we’ll look at Fair Haven. As of June 30th the median price of a single-family home in Fair Haven is up 12% compared to what it was a year ago. An increase in the median price is a good sign for home sellers and a bad sign for home buyers.
The 2nd indicator is the number of homes that have sold so far year-to-date. For Fair Haven, there have been 28% more sales this year compared to the same 6 month period in 2013. An increase in the number of sales indicates an increase in demand, and greater demand normally results in higher prices in the near future.
The 3rd indicator is the number of homes that are listed for sale. Here I look at an average of the past 12 months, and I find that we’ve had 3% fewer listings in Fair Haven than we did one year ago. Fewer listings indicates a decrease in supply, and lower supply also results in higher prices in the near future because buyers have fewer choices.
The last indicator is an important one: it’s the real estate absorption rate. This is a calculation of how long it would take to sell ALL of the homes currently listed for sale, assuming that homes continue to sell at the same rate as they have in the past 12 months. The reason that it’s so important is that it takes into account both supply and demand. For this indicator, it’s important to look at both the number itself and the change from one year ago. An absorption rate of 5 – 7 months is considered a “normal market”, more than 7 months is a “buyer’s market” and less than 5 months is a “seller’s market”. One year ago the Rumson absorption rate was 3.9 months, and currently it’s 2.9 months. Both numbers are within the range for a “seller’s market”, but now it’s more so than it was a year ago.
Here are the 4 objective indicators in tabular form:
|Fair Haven Home Sales, Jan 1 – Jun 30|
|Sales (Demand)||39||50||28% more sales.|
|Listings* (Supply)||30||29||3% fewer listings.|
|Months’ Supply* (Absorption Rate)||3.9||2.9||Stronger Demand vs Supply.|
|*based on the past 12 months|
|Median Sale $||$605,000||$678,500||12% higher median sales price.|
The bottom line is that all 4 key indicators are predicting higher prices for Fair Haven homes. If you’re considering buying a home in Fair Haven, please remember that I’ve lived here since 1975. I’d be glad to help you find the right house within your price range. I’ll also negotiate as low as purchase price as possible. This is one reason why I always advise home buyers not to call the Listing Agent (even if it’s me). The Listing Agent has a fiduciary responsibility to the Seller to negotiate the highest possible selling price. I’d be glad to act as your Buyer’s Agent, where I’ll be working only for you, and not for the seller.
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(732) 239-0739 (cell) (732) 530-6686 (office)