10 Rumson homes sold in August this year compared to 9 that sold last August. However, the monthly median price was much higher than what it was in 2013. As a result, our year-to-date statistics have changed quite a bit:
Rumson Single-Family Home Sales, January 1 – August 31
2013 2014 Comment
Sales 81 67 17% fewer homes sold.
Listings 53 56 6% more homes on market.
Months’ Supply 5.6 5.8 Similar demand vs. supply.
Median Sale $1,100,000 $1,145,000 4% higher median price.
At the end of last month, 3 of the 4 key indicators were in bold font (i.e., bad news for home sellers), 1 was neutral, and the median sales price had decreased 1%. Now, one of the indicators has turned into italicized font (i.e., good news for home sellers), 2 are still negative, and 1 is neutral.
We’ve been getting mixed signals from the objective indicators all year, so it’s hard to make short-term predictions about the direction of Rumson home prices. I’ll be keeping an eye on the real estate absorption rate, because it takes into account both supply and demand. The real estate market is normally strong between Labor Day and mid-November, so the next 2 months will probably determine whether we end the year with higher median prices or not.
We haven’t had the big increase in mortgage rates that was predicted a year ago, so it’s still a good time to buy for those who can qualify for a mortgage.
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