According to the most recent (February) S&P/Case-Shiller home price index, nationwide home prices are 12.9% higher than a year ago. In Hazlet, the median home price is up “only” 11% compared to one year ago. However, if you’re a Hazlet home owner you have some reasons to smile.
The median sales price is one of 4 key, objective indicators I use to assess the local real estate market. When the median price goes up, it’s good news for home sellers but bad news for home buyers. The 2nd key indicator is the number of sales. Year-to-date, 25% fewer Hazlet homes have sold compared to the same period in 2013. Fewer sales normally predict lower prices in the near future, but remember that the number of 1st quarter sales was affected by all the winter storms we had this year.
The number of Hazlet homes listed for sale declined 7% (fewer listings normally predict higher prices and more listings normally predict lower prices).
Find out what's happening in Holmdel-Hazletfor free with the latest updates from Patch.
The last bit of good news for Hazlet home sellers is that the real estate absorption rate is 5.1 months now, compared to 5.8 months a year ago. The real estate absorption rate is a calculation of how many months it would take to sell ALL of the homes currently listed for sale, assuming that homes continue to sell at the same rate that they have in the past 12 months. It takes into account both supply (i.e., inventory) and demand (i.e., sales). An absorption rate of 5 – 7 months is considered a “normal market”, whereas greater than 7 months is considered a “buyer’s market” and less than 5 months is considered a “seller’s market”. The absorption rate tells us that Hazlet has been in a “normal market” for the past year, but there’s relatively more demand now than there was a year ago.
Here are the 4 objective real estate indicators in tabular form:
Find out what's happening in Holmdel-Hazletfor free with the latest updates from Patch.
Hazlet Single-Family Home Sales, Jan 1 - Apr 30
2013 2014 Comment
Sales (Demand) 57 43 25% fewer homes sold.
Listings* (Supply) 84 78 7% fewer homes on market.
Months' Supply* 5.8 5.1 Stronger demand vs. supply.
*based on the past 12 months
Median Sale $ $257,050 $286,000 11% higher median price.
If you’re a Hazlet home owner you know what your home is worth for property tax purposes. That number may or may not reflect a home’s current market value; that’s the amount an informed buyer is willing to pay an informed seller. If you’ve been thinking of selling your home, you’ll probably get more for it now than you would have a year ago. I’d be glad to give you a free comparative market analysis estimating what your home would sell for in the current real estate market. No obligation, of course.
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
