Red Bank Real Estate Update

The median price of a single-family home in Red Bank was virtually unchanged in 2013 (from $335,000 in 2012 to $333,500). The median is the price at which 50% of the homes sold for more and 50% sold for less. It’s normally a better indicator than the mathematical average, which can be skewed by a handful of very high (or very low) priced home sales. Interestingly enough, this year the average Red Bank home price ($435,018) increased by 13%. When the average is higher than the median, it indicates that more higher-end homes sold.

30% more Red Bank homes sold in 2013 than in 2012; an increase in sales (i.e., demand) normally predicts higher home prices in the near future. In addition, we also saw a 28% decrease in the number of homes listed for sale (i.e., supply); fewer listings also tend to result in higher home prices.

The real estate absorption rate looks at both demand and supply. If you’ve been following my posts you know that a real estate absorption rate of between 5 and 7 months is considered to be a “normal market”, whereas greater than 7 months is a “buyer’s market” and less than 5 months is a “seller’s market”.  Red Bank started the year with an absorption rate of 8.2 months and ended 2013 with a rate of 4.5 months, so we moved from a “buyer’s market” to a “seller’s market” during the year. Next door in Little Silver and Fair Haven, the absorption rates are 3.0 and 3.2 months, which also fall into the “seller’s market” range.

The average Red Bank home took longer to sell in 2013 than in 2012. If a home is sold on its first listing, we measure the days it was on the market (DOM). However, if the listing expires before the home sells, once the home is re-listed we can measure either the DOM for the new listing or the number of cumulative days on the market (CDOM). The CDOM gives a much better idea of how long the home really took to sell. For Red Bank, the average CDOM went from 87 days in 2012 to 114 days in 2013.

If you’re a Red Bank home owner, there are lots of things to be happy about: sales are up, fewer homes are on the market, and the absorption rate is much shorter. If you’re thinking of selling your home this year, please let me be one of the REALTORS® you interview to list your home on the market. A decision on “fair market value” for your home should be based on solid data about the current market.

If you’re thinking of buying a home in Red Bank, be happy that the median price hasn’t changed yet, but don’t expect that to continue in 2014. If you’ll need a mortgage, also keep a close eye on mortgage rates, which are expected to rise significantly by the 4th quarter.

Here are all the statistics:

 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