July was another good month for Holmdel real estate. While 15 single-family homes sold in July last year, 25 sold this year (+67%). Although the monthly median home price decreased 6%, the average price increased 27% (from $662,109 last July to $840,983 this July).
Those are just the monthly numbers. The 4 key objective indicators we really want to look at are Holmdel’s 2013 Year-to-Date statistics, which all are positive for home sellers:
Sales: 71 in 2012, 85 in 2013 (+20%)
Find out what's happening in Holmdel-Hazletfor free with the latest updates from Patch.
Listings: 120 in 2012, 109 at the end of July 2013 (-9%)
Median Sales Price: $640,000 in 2012, $660,000 in 2013 (+3%)
Find out what's happening in Holmdel-Hazletfor free with the latest updates from Patch.
Absorption Rate: 10.8 months in 2012, 6.4 months now (much stronger Demand vs. Supply)
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”, a rate greater than 7 months is a “buyer’s market” and a rate less than 5 months is considered a “seller’s market”. If you’re thinking of buying or selling a home in Holmdel, the current rate of 6.4 months tells you that we’re no longer in the “buyer’s market” that we were in last year.
Let’s see if these predictions of higher home prices turn out to be correct in Holmdel- 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 Holmdel but still aren’t sure if it’s the right time, 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
