If you’ve been thinking about buying a home in Shrewsbury, is now a good time to buy? The signals are mixed: although nationwide home prices have increased by 12%, as of the end of August, the median price of a single-family home in Shrewsbury rose by only 2% compared to a year ago. So, is now your chance?
Let’s look at the 8 month year-to-date statistics for Shrewsbury, focusing on the 4 key objective real estate indicators (items in bold font are good news for home sellers, but bad news for home buyers; items in underlined italic font are bad news for home sellers, but good news for home buyers):
Sales: 37 in 2012, 22 in 2013 (-41%)
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Listings: 13 in 2012, 14 at the end of August 2013 (+8%)
Median Sales Price: $455,000 in 2012, $465,250 in 2013 (+2%)
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Absorption Rate: 4.8 months in 2012, 4.0 months now (stronger Demand vs. Supply)
The decreased number of sales and the slightly increased number of listings are good news for buyers, because they tend to predict lower prices in the future. The median home price has increased only 2%, but look at the real estate absorption rate. The real estate absorption rate is a calculation of how long it would take to sell all the homes that are currently listed, assuming that homes continue to sell at the current rate for the past 12 months. In a “normal market” the absorption rate is between 5 and 7 months, greater than 7 months is considered a “buyer’s market” and less than 5 months is considered a “seller’s market”.
According to the absorption rate, Shrewsbury is still in a “seller’s market”, and has been in over a year. To put things in perspective, neighboring Little Silver, with an absorption rate of 4.1 months, is also in a “seller’s market”, and the median price in Little Silver is up 14%. On the other hand, Fair Haven has an absorption rate of 3.6 months and the median price is actually down 3%.
If you’re looking to buy in Shrewsbury, it’s good news that you’re in a “seller’s market” but the median price has only increased 2%. However, the decreased number of sales and the slightly increased inventory tells you to be selective, and make sure you buy a house that’s not priced above the market.
Traditionally there's an upswing in the number of home sales between Labor Day and Thanksgiving, and then a relatively quiet real estate market until early spring. If you're thinking of buying a home in Shrewsbury, look now while there's still a good supply of homes. If you find a home you like, you'd be wise to lock in a mortgage interest rate before rates go up again.
Currently there are 3 homes listed for sale in Shrewsbury in the $400 - $500 thousand dollar range, 3 in the $500,000 - $600,000 range, 1 at $799,000 and 4 more in the $800 - $900 thousand dollar range. No new construction is currently listed for sale.
Remember, if you find a listing for a home in Shrewsbury you like, DON’T CALL THE LISTING AGENT. The Listing Agent works for the Seller, and has a fiduciary responsibility to get the highest price. You want to work with a REALTOR® whose undivided loyalty is to YOU, and who will negotiate the LOWEST price.
I'd be glad to help you find exactly what you're looking for in Shrewsbury- just call, text or email me and I'll get right back to you.
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)
