Colts Neck Home Prices Up 13%

At the end of the first quarter, the median sales price of a single-family home in Colts Neck was up 13% compared to the same period last year. The same number (21) of homes sold between January 1 and March 31 of both years.

If we look at the last 12 months, the same number of homes were listed for sale (86), but the real estate absorption rate declined from 11.0 months to 8.5 months. The real estate absorption rate is a calculation of how long it would take to sell ALL of the homes on the market if sales continue at the same rate as they have in the past 12 months. In a “normal market”, there’s a 5 – 7 months’ supply of homes on the market; a supply greater than 7 months is considered a “buyer’s market” and a supply less than 5 months is considered a “seller’s market”. The current rate (8.5 months) says we’re still in a “buyer’s market” but not as much as we were a year ago.

Here are the 4 key objective indicators in tabular form:

When the number of sales goes up, prices tend to go up; since the number of sales is the same, this indicator is currently neutral. When the number of homes on the market goes up, prices tend to go down; this indicator also is currently neutral. When the real estate absorption rate goes down, prices tend to go up; that’s what this indicator is predicting now. In 2013 Colts Neck home prices rose 8% compared to 2012 sales- it will be interesting to see whether the strong price increase we’re seeing so far in 2014 will continue throughout the year.

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

@ListWithLen