Matawan Home Prices Up 3%

We’ve finally had more than 20 sales of single-family homes in Matawan this year. If you’ve been following my real estate posts you know that we need at least 20 sales in both years in order to do any statistically-significant comparisons. As of May 31st, the year-to-date median home selling price in Matawan has increased 3% compared to the same period in 2013. Higher prices tend to predict even higher prices in the near future.

I use 4 key, objective real estate indicators to predict what’s happening to the local real estate market. The 2nd indicator is the number of homes that have sold. More home sales tend to predict higher prices (due to higher demand) and fewer home sales tend to predict lower prices (due to lower demand). 4% fewer homes sold in Matawan in the first 5 months of 2014 than in the same period in 2013, so this indicator is predicting lower prices to come.

The 3rd indicator is the number of homes that are on the market (based on the past 12 months): higher inventory tends to predict lower sales prices (based on more choices) and lower inventory tends to predict higher sales prices (based on fewer choices). As of May 31st, 8% fewer Holmdel homes were listed for sale than there were a year ago, so this indicator is predicting higher prices to come.

The 4th indicator is the real estate absorption rate, which takes into account both supply and demand. It’s a calculation of how long it would take to sell all the homes listed for sale, if homes continue to sell at the same rate as they have in the previous 12 months. An absorption rate of 5 – 7 months is considered a “normal market”, greater than 7 months is considered a “buyer’s market”, and less than 5 months is considered a “seller’s market”. Matawan’s real estate latest absorption rate is 5.4 months, and was 7.2 months at this time last year; we’ve moved from a “buyer’s market” to a “normal market”.

Here are the year-to-date numbers in tabular form:

Matawan Home Sales, Jan 1 - May 31

The bottom line: 3 out of 4 key, objective indicators are predicting higher prices for homes in Matawan. If you’re a Matawan home owner and are thinking of selling your home, please let me be one of the REALTORS® you interview. I’ll show you all the homes comparable to yours that sold recently, and give you an estimate of what I think your home will sell for in the current “normal 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

@ListWithLen