At the end of 7 months (2013), the Red Bank real estate market is still one of the weakest markets in our area. This isn’t good news if you want to sell a house in Red Bank, but it may represent a window of opportunity for buyers. Let’s dig into this a little deeper.
The 4 key objective indicators we really want to look at are Red Bank’s 2013 7-Month Year-to-Date statistics.
Sales: 32 in 2012, 42 in 2013 (+31%)
Find out what's happening in Red Bank-Shrewsburyfor free with the latest updates from Patch.
Listings: 38 in 2012, 41 at the end of July 2013 (+8%)
Median Sales Price: $332,500 in 2012, $326,750 in 2013 (-2%)
Find out what's happening in Red Bank-Shrewsburyfor free with the latest updates from Patch.
Absorption Rate: 11.3 months in 2012, 5.8 months now (much stronger Demand vs. Supply)
Increased sales normally predict higher prices in the near future, but increased listings predict lower prices. The 2% decrease in the median sales price represents a very small change. So can we draw any conclusions from the 4 key numbers above? I feel the key is in the significantly stronger real estate absorption rate. The real estate absorption rate is a calculation of the time it would take to sell all of the homes currently on the market, assuming that homes continue to sell at the same rate as they did in the past 12 months. An absorption rate of greater than 7 months is considered a “buyer’s market”, while 5 – 7 months is considered a “normal market”, and a rate less than 5 months is considered a “seller’s market”. If you’re thinking of selling a home in Red Bank, the current rate of 5.8 months should really make you smile, because in one year we’ve moved from a “buyer’s market” into a “normal market”.
If you’ve been thinking of buying a home in Red Bank, you might want to act sooner rather than later. A decreasing real estate absorption rate predicts higher prices, so this may represent a “window of opportunity” to buy while prices are still low and before mortgage rates go up again. If you find a listing for a Red Bank home 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.
Whether you’re a first time home buyer or a repeat buyer, I’d be glad to help you find exactly the right home in Red Bank before mortgage rates rise again. Call, text or email me and let me know what you’re looking for.
What other REALTOR® gives you this kind of objective information about the LOCAL real estate market?
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)
