4 Key Numbers for Red Bank Real Estate

We’ve finally had more than 20 single-family homes sold in Red Bank this year, so we can do a valid statistical comparison with the real estate market a year ago. As of June 30th the median price of a single-family home in Red Bank is up 2% compared to what it was a year ago. The change in the median price is one of the 4 key, objective indicators you should know if you’re following Red Bank real estate. An increase in the median price is a good sign for home sellers and a bad sign for home buyers.

The 2nd indicator is the number of homes that have sold so far year-to-date. In Red Bank, there have been 31% fewer sales this year compared to the same 6 month period in 2013. A decrease in the number of sales indicates a decrease in demand, and lower demand normally results in lower prices in the near future.

The 3rd indicator is the number of homes that are listed for sale. Here I look at an average of the past 12 months, and I find that we’ve had 10% fewer listings in Red Bank than we did one year ago. Fewer listings indicates a decrease in supply, and less supply tends to result in higher prices in the near future because buyers have fewer choices.

The last indicator is an important one: it’s the real estate absorption rate. This is a calculation of how long it would take to sell ALL of the homes currently listed for sale, assuming that homes continue to sell at the same rate as they have in the past 12 months. The reason that it’s so important is that it takes into account both supply and demand. For this indicator, it’s important to look at both the number itself and the change from one year ago. An absorption rate of 5 – 7 months is considered a “normal market”, more than 7 months is a “buyer’s market” and less than 5 months is a “seller’s market”. One year ago the Red Bank absorption rate was 5.6 months, and currently it’s 5.3 months. Both numbers are within the range for a “normal market”, but now it’s closer to a “seller’s market” than it was a year ago.

Here are the 4 objective indicators in tabular form:

Red Bank Home Sales, January 1 - June 30

The bottom line is that 3 of the 4 key real estate indicators are predicting higher Red Bank home prices in the near future. If you’re considering selling a home in Red Bank, I’ll be glad to go over the statistical information in more detail with you, give you an estimate of what your home is worth in the current “normal market”, and give you a detailed proposal for a marketing plan to sell your home as quickly as possible for as high a price as possible.

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