If you own a home in Holmdel and have been thinking of selling, 2012 hasn't been a very good year for real estate, has it? Although 39% more single-family homes sold in Homdel this year compared to last year, the median price is actually 8% lower than it was a year ago. Normally when the number of home sales increases, the price increses as well, so why do we think the market is recovering?
To answer that question, let’s take a look at the 4 key objective real estate indicators, demand, supply, absorption rate and price:2012 Holmdel Home Sales, January - November (11 Months Year To Date)
2011 2012 Comment
Sales (Demand) 97 135 39% more homes sold.
Listings (Supply) 105 107 2% more homes on market.
Months' Supply (Absorption Rate) 12.6 8.9 Increased demand vs. supply.
Note: this is the latest 12 month number Average Sale $ (Value) $799,472 $702,477 12% lower average sales price.
Median Sale $ (Value) $705,000 $650,000 8% lower median sales price.
Although there are 2% more homes on the market than there were a year ago, the key number that a REALTOR® looks at is the real estate absorption rate. This is a calculation of how long it would take (in months) to sell all of the homes on the market, assuming that homes continue to sell at the present (12 month) rate. In a “normal” real estate market the real estate absorption rate is 5 to 7 months; a rate greater than 7 months indicates a “buyer’s market” and a rate less than 5 months indicates a “seller’s market”. We’ve been in a buyer’s market for the past few years both nationwide and in Monmouth County.
The present real estate absorption rate for Holmdel single-family homes is 8.9 months. That’s greater than 7 months, and therefore is still an indication of a “buyer’s market”. So why do we think that things will be changing next year? Look at the tremendous improvement from one year ago, when the absorption rate was 12.6 months. Parts of Monmouth County have already returned to a “normal” real estate market, and there’s every indication that Holmdel real estate will be there as well in 2013. If you live in Holmdel and have been thinking of selling your home, you should make plans now so you can list your home in the spring. I’d be glad to send you a free checklist of simple things you can do to make your home more marketable- just send me an email or text me/give me a call at (732) 239-0739.
Note: I wrote this article; these are my personal views and do not necessarily reflect the views of Diane Turton, Realtors.
Leonard “Len” Dunikoski, GRI
Diane Turton Realtors – Rumson Office
8 West River Road
Rumson, NJ 07760
(732) 239-0739 (cell) (732) 530-6686 (office)
Upload Photos and Videos