The Little Silver real estate market has strengthened a lot since this time last year. In fact three of the four key real estate market indicators (sales, listings, demand, and average sales price) are positive. The positives? Six (6) month sales have increased from 25 to 33, fewer homes are on the market and the months’ supply (absorption rate) has decreased from 10.2 to 7.2 . The one negative is that the average sales price has decreased by less than 1 percent. Here’s all of the current information:
2011 2012 Comment
Sales (Demand) 25 33 More homes sold.
Listings (Supply) 56 47 Fewer homes on market.
Months' Supply (Absorption Rate) 10.2 7.2 Homes selling faster.
Average Sale $ (Value) $582,379 $577,651 0.8% lower sales price.
Average Listing $ $615,312 $615,154 Similar listing price.
Avg Sale/List % 96.2% 94.5% Sale $ farther from Listing $.
If you have any doubt that the real estate market is healthy again, these numbers should change your mind. To me the sales (Demand) and months’ supply (Absorption Rate) data are the most significant because they have changed so dramatically. If you look at sales, we’re talking about a 32% increase, and that’s a big number. However, to a real estate agent, the change the absorption rate is even more important.
Just to refresh your memory, the Absorption Rate is the number of months it will take to sell all of the existing listings, assuming that sales continue at the current rate. In a “normal” real estate market the Absorption Rate is between 5 and 7 months, with less than 5 months being a “seller’s market” and more than 7 months being a “buyer’s market”. To go from a 10.2 month Absorption Rate to a 7.2 month one is a huge change- we’re almost back to a “normal market”.
Little Silver is a great place to live. Sure, people grumble about the taxes but look what kind of value you’re getting when you buy a home in Little Silver. You’re close to water and the Jersey shore; Red Bank’s downtown scene is right next door; you can easily get into New York by car, train or ferry; and you have a terrific school system! To top it off, home prices aren’t as high as in some of the surrounding towns.
If you’d like more detailed information about the Little Silver homes that sold in June, just send me an email (firstname.lastname@example.org) and I’ll be happy to provide it for you.
Hope you enjoy a GREAT 4th of July, and remember to fly the American flag at your house!