July was another good month for Little Silver real estate. Only 6 homes sold in July last year, but 14 sold this year. Although he monthly median home price decreased 3% (from $505,500 last July to $494,000 this July), I don’t put much faith in statistics when one of the numbers (last July’s) involves just 6 home sales.
The 4 key objective indicators we want to look at are Little Silver’s 2013 Year-to-Date statistics, which all are positive for home sellers:
Sales: 39 in 2012, 59 in 2013 (+51%)
Find out what's happening in Little Silver-Oceanportwith free, real-time updates from Patch.
Listings: 46 in 2012, 35 at the end of July 2013 (-24%)
Median Sales Price: $460,000 in 2012, $549,200 in 2013 (+19%)
Find out what's happening in Little Silver-Oceanportwith free, real-time updates from Patch.
Absorption Rate: 7.0 months in 2012, 4.3 months now (stronger Demand vs. Supply)
Increased sales and fewer homes on the market normally predict higher prices in the near future. The significantly stronger real estate absorption rate also predicts that sales prices will rise. If you remember my previous posts, you know that the absorption rate is a calculation of the time it would take to sell all of the homes currently on the market, assuming that homes continue to sell at the same rate as they did in the past 12 months. An absorption rate of 5 – 7 months is considered a “normal market”, and a rate less than 5 months is considered a “seller’s market”. If you’re thinking of selling a home in Little Silver, the current rate of 4.3 months should really make you smile!
Let’s see if these positive prediction turns out to be correct- we still haven’t seen the impact that higher mortgage rates may have on the market. Will we see an increase in home buyers trying to lock in the present rates before they rise again, or will rates increase more quickly than expected (and reduce the size of the home mortgages that buyers can afford)?
If you’ve been thinking of selling your home but still aren’t sure, I’d be glad to help you by giving you a free (no obligation) analysis of what your home is worth in the present real estate market. Call, text or email me.
Len
Leonard “Len” Dunikoski, GRI
REALTOR® Associate
Diane Turton Realtors – Rumson Office
8 West River Road
Rumson, NJ 07760
(732) 239-0739 (cell) (732) 530-6686 (office)
