As of June 30th, the median price of a home in Rumson increased by 2% compared to a year ago, and we’ll take a closer look at that data tomorrow. Today let’s look at Fair Haven, where the median price of a home increased 7% (to $725,000) compared to a year ago. That means buyers are going to have to pay more for a Fair Haven home than they would have a year ago. In addition, 3 of the 4 key real estate indicators are negative for Fair Haven home buyers (more homes were sold, fewer homes are available for sale and the median sales price was higher). Those key objective real estate indicators are predicting that prices will continue to rise in the near future. The real estate absorption rate is longer than it was a year ago, so this should be good news for home buyers (highlighted below in underlined font). Here are the numbers in tabular form:
Fair Haven Single-Family Home Sales, January 1 – June 30
2014 2015 Comment
Sales 50 63 26% more homes sold.
Listings/Month* 34 33 3% fewer homes on market.
Months Supply* 3.5 3.7 Weaker demand vs. supply.
Median Sale $678,500 $725,000 7% higher median sales price.
*based on the previous 12 months of listings
More home sales indicates increased demand, which tends to push prices higher. Likewise, fewer homes on the market indicates lower supply, which also tends to increase sales prices. The real estate absorption rate is a calculation of how long it would take to sell all the houses on the market, assuming homes continue to sell at the same rate as they have for the past 12 months. Since the absorption rate is longer, normally we’d say this was good news for Fair Haven home buyers. However, before you get too excited, you should know that the absorption was 4.3 months in January and has decreased to 3.7 months now. Also remember that an absorption rate on less than 5.0 months is considered to be a “seller’s market”.
With homes in Fair Haven in such high demand, you should know what’s available in your price range. Go look at as many homes as possible, so you get a good idea of that portion of the market. Then when a new listing is posted you’ll be able to judge whether it’s a good value for the money or priced too high. Remember, though, that there will be other “informed consumers” looking to relocate to Fair Haven, and they’ll be going through the same process. When a home is priced at or below the market, it goes under contract quickly. Don’t wait to go look at it, because delaying may mean that you’ll lose it to someone else, or you’ll end up in a bidding war.
If you’re out of the area and can’t see a new listing personally, if I’m your Buyer’s Agent I’ll go photograph anything significant that isn’t shown in the listing photos. I also can do a video walk through for you, although it won’t be as polished as one that I’d make for a Seller. If you really want to buy a home in Fair Haven, I’ll do whatever it takes to see that it happens.
(732) 239-0739 (cell) (732) 530-6686 (office)