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Health & Fitness

Hazlet Home Prices Move Higher

The last time we looked at the Hazlet real estate market was two months ago. At the end of May, 30% more single-family homes had sold in Hazlet and 21% fewer homes were listed for sale. The combination of more sales and fewer listings normally results in higher prices, but at the end of May the median home price in Hazlet ($257,500) was similar to what it had been a year ago. Two months later, the market looks a lot stronger.

The 4 key objective indicators we really want to look at are Hazlet’s 2013 7 Month Year-to-Date statistics, which all are positive for home sellers:

Sales:   89 in 2012, 111 in 2013 (+25%)

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Listings: 104 in 2012, 85 at the end of July 2013 (-18%)

Median Sales Price: $265,000 in 2012, $274,000 in 2013 (+3%)

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Absorption Rate: 7.7 months in 2012, 5.4 months now (stronger Demand vs. Supply)

As we said, 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 Hazlet, the current rate of 5.4 months should really make you smile, because in one year we’ve moved from a “buyer’s market” to the low end of a “normal market”. Will we see the rate move into a “seller’s market” (less than 5 months) before the end of the year?

There’s one important thing to note, however- 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 in Hazlet 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)

ldunikoski@dianeturton.com

http://www.rumsonfairhavenhome.com

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