Middletown Real Estate Update

The Middletown real estate market seems to be running out of steam. At least that’s what my 4 key, objective indicators are saying. At the end of May, the 5 month year-to-date median sales price of a single-family home was only 3% higher than it was at the end of May last year. Higher prices normally predict even higher prices in the future, but a 3% increase is small when compared to the 12% increase we’re seeing nationally, and what we’re seeing in nearby towns (Hazlet and Holmdel are up 8%, Fair Haven is up 12%).

In addition, 10% fewer single-family homes sold in those same 5 months (fewer sales indicate weaker demand, and weaker demand tends to lead to lower prices in the future).

The 3rd indicator, Supply, is the opposite of demand. By supply, REALTORS® mean inventory, or the number of homes listed for sale. The number of homes listed for sale remains unchanged from a year ago, so the supply has neither increased nor decreased, and therefore this indicator is neutral in predicting the direction of future home prices.

The 4th indicator is the real estate absorption rate, which takes into account both supply and demand. If you remember, the absorption rate is a calculation of how long it would take to sell ALL of the homes listed for sale, assuming that homes continue to sell at the same rate as they have in the past 12 months. A 5 – 7 month absorption rate is called a “normal market”, a rate greater than 7 months is called a “buyer’s market”, and a rate less than 5 months is called a “seller’s market”. The current Middletown absorption rate is 5.7 months and was 6.2 months one year ago, so it’s saying we’re still in a “normal market”.

Here are the 4 key indicators in tabular form:

Middletown Home Sales, Jan 1 - May 31

If you’re thinking of selling a home in Middletown, you’ll probably get a slightly higher price than you would have a year ago, but don’t expect to see the 12% gain you’ve read about in the nationwide real estate market. I’d be glad to meet with you and show you all the recent sales of Middletown homes similar to yours, so you can have an idea of what your house would sell for in the current market. No obligation, of course. Just 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