A week and a half ago we reported that home buyers were feeling a sense of “urgency” (http://longbranch.patch.com/blog_posts/home-buyers-feeling-sense-of-urgency-6df42fb5) to buy before home prices go up. In some towns, such as in Long Branch, buyers have been pouring into the real estate market and forcing prices higher.
In the 5 month period between January 1st and May 31st, the median price of a single-family home in Long Branch increased by a whopping 24% compared to a year ago (the median is the price at which 50% of the homes sold for more and 50% sold for less). The average listing price increased by 15% and the average selling price was up 19%. In addition, homes sold a lot faster than they did last year.
For Long Branch home sellers, there was lots of other good news: 11% more homes sold, and 13% fewer homes were listed for sale. The combination of more sales and fewer homes available tends to cause prices to increase.
It’s significant that the real estate absorption rate in Long Branch decreased from 17.2 months to 13.7 months. The absorption rate is a calculation of how long it would take to sell all of the houses currently on the market, assuming that homes continue to sell at the present rate. An absorption rate of between 5 and 7 months is considered a “normal market”, greater than 7 months is considered a “buyer’s market”, and less than 5 months is a “seller’s market”. If there’s any good news for Long Branch home buyers it’s that we’re officially still in a “buyer’s market”.
Here are all of the numbers:
Long Branch Home Sales, January - May
2012 2013 Comment
Sales (Demand) 37 41 11% more homes sold.
Listings (Supply) 120 104 13% fewer homes on market.
Months' Supply (Absorption Rate) 17.2 13.7 Stronger demand vs. supply.
Note: based on the past 12 months Average Sale $ (Value) $231,105 $274,588 19% higher average sales price.
Median Sale $ (Value) $185,000 $229,500 24% higher median sales price.
Average Listing $ $255,683 $293,017 15% higher average listing price.
Avg Sale/List % 90% 94% Higher Sales/Listing %.
Avg Cumulative Days On Market 196 109 Much shorter average CDOM
Things are changing dramatically, and all of these objective numbers are predicting higher Long Branch home prices for the rest of this year. I’d be glad to help you sell or buy a home in Long Branch- text me, give me a call or send me an email.
Leonard “Len” Dunikoski, GRI
Diane Turton Realtors – Rumson Office
8 West River Road
Rumson, NJ 07760
(732) 239-0739 (cell) (732) 530-6686 (office)