Seven (7) Rumson homes sold in October, and with those sales one of our 4 key, objective real estate indicators turned positive for home buyers. The real estate absorption rate increased from 8.0 months at this time last year to 8.1 months now. An increase of 1/10th of a month isn’t much, but t’s an important indicator because it looks at both supply and demand. It’s a calculation of how long it would take to sell all the homes listed for sale if home sales continue at the same rate as they have in the past year. A real estate absorption rate between 5 and 7 months is a “normal market” and anything greater than 7 months is considered a “buyer’s market”.
Here are the numbers for the 4 key objective indicators as of October 31st. Good news for home buyers is shown in italics and underlined:
Rumson Single-Family Home Sales, January 1 – October 31
2014 2015 Comment
Sales 89 96 8% more homes sold.
Listings/Month* 76 75 2% fewer homes on market.
Months Supply* 8.0 8.1 Slightly weaker demand vs. supply.
Median Sale $1,165,000 $1,222,500 5% higher median sales price.
*based on the previous 12 months of listings
In addition to the 4 key indicators, I track other indicators such as the average sales price, the average listing price, the average number of days on the market, etc. I also keep my own database of every home that sells in Rumson (and Fair Haven), using information from the tax records as well as information from the Multiple Listing Service (MLS). This information helps me in several ways: when a potential seller asks me what their home is worth, I can give them a far better estimate than any computer program can. Since I try to visit every new listing in Rumson-Fair Haven, I know what the interiors of the homes really looked like and that’s information you can’t get by just looking at the listing photos.
The database helps me when I’m working with buyers as well. I can give them information such as the number of homes that sold for less than assessed value, the average percentage over assessed value for homes that sold above assessed value, the average price per square foot for differently sized homes, etc. It also gives me excellent “comps” (comparable sales) to use when a buyer asks me for the current market value of a home they liked.
If you’re looking for a home in Rumson, now is a great tme to start. Most homes are nicely decorated for the holidays, and often the scent of baking fills the air with delicious aromas. Call or text me and I’ll help you find what you’re looking for.
(732) 239-0739 (cell) (732) 530-6686 (office)