The median price of a single-family home in Little Silver increased by 16% in 2013 (from $480,000 in 2012 to $555,000). The median is the price at which 50% of the homes sold for more and 50% sold for less. It’s normally a better indicator than the mathematical average, which can be skewed by a handful of very high (or very low) priced home sales. Interestingly enough, this year the average Little Silver home price increase (15%) was very close to the median increase.
36% more Little Silver homes sold in 2013 than in 2012; an increase in sales (i.e., demand) normally predicts higher home prices in the near future. We also so a 3% decrease in the number of homes listed for sale (i.e., supply); fewer listings also tend to result in higher home prices in the near future.
The real estate absorption rate looks at both demand and supply. If you’ve been following my posts you know that a real estate absorption rate of between 5 and 7 months is considered to be a “normal market”, whereas greater than 7 months is a “buyer’s market” and less than 5 months is a “seller’s market”. Little Silver started the year with an absorption rate of 6.8 months and ended 2013 with a rate of 3.0 months, so we moved from a “normal market” into a “seller’s market” during the year. Fair Haven and Little Silver were two of the hottest real estate markets in the state, with absorption rates of 3.2 months and 3.0 months respectively.
The average Little Silver home sold a lot faster in 2013 than in 2012. If a home is sold on its first listing, we measure the days it was on the market (DOM). However, if the listing expires before the home sells, once the home is re-listed we can measure either the DOM for the new listing or the number of cumulative days on the market (CDOM). The CDOM gives a much better idea of how long the home really took to sell. For Little Silver, the average CDOM went from 106 days in 2012 to 75 days in 2013.
If you’re a Little Silver home owner, there are lots of things to be happy about: sales are up, prices are up, and homes are selling faster. If you’re thinking of buying a home in Little Silver, you’ll have to plan to spend more than you would have a year ago.
Here are all the statistics:Little Silver Single Family Home Sales, Jan 1 - Dec 31
2012 2013 Comments
Sales (Demand) 67 91 36% more sales.
Listings (Supply) 32 31 3% fewer listings.
Months' Supply 6.8 3.0 Demand vs Supply much stronger.
Based on the prior 12 months
Average Sale $581,862 $670,679 15% higher average sales price.
Median Sale $480,000 $555,000 16% higher median sales price.
Average Listing $625,886 $693,131 11% higher listing price.
Avg Sale/List % 93.0% 96.8% Much Higher Sale/List %.
Avg Cum Days 106 75 Much shorter CDOM
Leonard “Len” Dunikoski, GRI
Diane Turton Realtors – Rumson Office
8 West River Road
Rumson, NJ 07760
(732) 239-0739 (cell) (732) 530-6686 (office)