Ten (10) Fair Haven homes sold (closed) in July, and our four key real estate indicators are virtually unchanged from what they were last month. The median price of a Fair Haven home increased 6% compared to a year ago. In addition, 3 of the 4 key real estate indicators are negative for home buyers (more homes were sold, fewer homes are available for sale and the median sales price is higher). Although the real estate absorption rate increased from 3.5 months last year to 3.8 months now, it’s still 5.0 months so we’re still in a “Seller’s Market” (5 – 7 months).
Fair Haven Single-Family Home Sales, January 1 – July 31
2014 2015 Comment
Sales 62 74 19% more homes sold.
Listings/Month* 35 33 6% fewer homes on market.
Months Supply* 3.5 3.8 Weaker demand vs. supply.
Median Sale $682,000 $721,250 6% higher median sales price.
*based on the previous 12 months of listings
Demand for homes usually picks up after Labor Day and stays strong until mid-November. This year there’s an additional twist: the Federal Reserve is expected to increase the federal funds rate at one of their monthly meetings between now and the end of the year; many economists are predicting it will be announced at their September meeting.
An increase in the federal funds rate will translate into higher mortgage rates, so it will be interesting to see how the real estate market reacts. Will buyers be even more active than usual, hoping to nail down a mortgage while the rates are still at historically low levels? Will an increase in mortgage rates make fewer homes affordable for first time home buyers?
Either way, if you’ve been thinking of taking out a mortgage to buy a home in Fair Haven (or anywhere else for that matter), my recommendation is to try to go under contract sooner rather than later, because there almost certainly will be more than one rate hike. Call me for a no-obligation visit to talk about it, or for me to show you the Fair Haven homes that are currently on the market.
(732) 239-0739 (cell) (732) 530-6686 (office)