Fall is in the air, and we’re already into the 4th quarter of the year. 11 Rumson homes sold in September this year compared to the 10 that sold last year. However, our year-to-date statistics still show that 3 of the 4 key real estate indicators look unfavorable for home sellers (fewer homes were sold, there are more listings, and the real estate absorption rate (months’ supply) is longer. The only positive indicator is that the median home price is still up 1%:
Rumson Single-Family Home Sales, January 1 – September 30
2013 2014 Comment
Sales 91 78 14% fewer homes sold.
Listings 53 56 6% more homes on market.
Months’ Supply 5.5 5.8 Weaker demand vs. supply.
Median Sale $1,150,000 $1,157,500 1% higher median price*.
If we look back to the end of the 2nd quarter, 2 of the 4 key indicators were positive* (i.e., good news for home sellers): the absorption rate was 5.3 months and the median sales price was up 10%. The year-to-date number of sales was down 8% at the end of June and is now down 14%, so the 3rd quarter has been a disappointment. Still, Rumson home prices decreased by 11% in 2013, so a 1% median price increase so far this year is good (although not great) news.
Of course, there are always two sides to every story. If you’re thinking of buying a house in Rumson, you’ll probably pay less for a home than you would have earlier this year. Having more homes on the market also means that you have more homes to choose from. Lastly, mortgage rates haven’t gone up the way the “experts” predicted they would; in fact, mortgage rates are at a 6 month low. I’d be glad to show you Rumson homes that are in the market in your price range- just give me a call.
(732) 239-0739 (cell) (732) 530-6686 (office)