Oceanport Home Prices Down, Despite More Sales

In the past we’ve talked about the relationships between 4 key real estate indicators: sales volume, listings, the real estate absorption rate, and prices. Typically the combination of increasing sales, decreasing inventory and decreasing absorption rate predict higher home prices. However, in Oceanport, after 8 full months, we’re seeing markedly lower home prices for single-family homes (not including condominiums):

      Oceanport Home Sales, January - August (8 Months Year To Date)

Key Real Estate Indicator

    2011

    2012

        Comment

Sales (Demand)

    30

    36

20% more homes sold.

Listings (Supply)

    49

    43

12% fewer homes on market.

Months' Supply (Absorption Rate)

   10.5

   7.3

Almost a "normal market" (5-7 months).

Average Sale $ (Value)

$586,946

$444,527

24% lower average sales price.

Median Sale $ (Value)

$527,450

$387,000

27% lower median sales price.

Lower sales prices are good news for home buyers, especially while mortgage interest rates remain very low. All of the things that make Oceanport such a great place to live are now more affordable, especially when compared to neighboring towns like Little Silver, Rumson and Monmouth Beach.  You can get a lot of value for your money!

However, for potential sellers the news about lower prices is discouraging. You’ve heard that the real estate market as a whole has been improving, and you were hoping for higher prices, not lower. If you’re in this situation and you have to sell your home in the next 6 months to a year, make sure that you do everything you can to make your home look more attractive to potential buyers. Fix anything that’s not working. Clean up, spruce up, and get rid of as much clutter as possible. Put on a coat of a neutral-colored paint so everything looks fresh and in “move in” condition. Give your home some “curb appeal” by making sure the lawn and the landscaping look well cared for; buy and plant some mums to add interest and color. Find a REALTOR® who’ll have a professional photographer come in and take pictures of your house at no charge to you, and/or have a professional stager come in and give you recommendations at no charge to you. Finally, be realistic about pricing your home. Remember, it doesn’t matter what it was worth 5 years ago or what you “need” to get out of it; the only thing that matters is what someone’s willing to pay for it.

There are several excellent books for people thinking about selling their homes. Go get one from the library, or buy one online at Amazon.com or Borders.com. Give me a call and I’d be glad to recommend one.

Len

Leonard “Len” Dunikoski

REALTOR Associate

Diane Turton Realtors – Rumson Office

8 West River Road

Rumson, NJ 07760

(732) 239-0739 cell     (732) 530-6686 office

ldunikoski@dianeturton.com