Sunday, May 10, 2009

Let statistics bolster your confidence in the New Jersey real estate market

I've been blogging about new real estate listings in Mercer County, New Jersey and the surrounding areas for more than three months now and I've been musing about the economy and encouraging my readers to take action for just as long. I think - or hope - that my positive outlook is beginning to take hold. As I read through the single family home sales report developed by Trend MLS for the first quarter of 2009, I wondered if my outlook was supported by the statistics. I am happy to report that it is. So what do those statistics say?

Inventory for the first three months of 2009 was higher than any time in the past ten years except for 2008. This is good because that means there are plenty of choices keeping the buyer's market wide open for opportunity.

Inventory accumulation is higher than any other time in the past ten years. This is challenging because it is predicted that it will take ten months to absorb the current number of homes that are available for sale.

The number of pending units is similar to last year at this time; but more important, there was a significant jump from February to March in this year, perhaps signifying confidence or recognizing opportunity.

The same for settled units, while the number was down from previous years; it was on a positive upward trend up higher than the last five months. The settled volume recorded in dollars was appropriately higher as well indicating stability in housing prices.

What does that say about the median price in Mercer County, NJ? It’s off slightly from previous months at $225,000, but that is a median price point possibly indicative of where the “bubble” began in 2005. We must follow this statistic closely over the next months to determine its significance.

The average settled price for a single family residence came in at $308,000 in March, rising slightly from the month before. Looking at percentages, sellers are receiving approximately 88% of their asking price, only 2% less than the same month last year.

Do the statistics make you feel more confident? That means it must be time for you to make your move. Call me at (609) 658-2612 so we can discuss this topic even more and then find the right New Jersey home for you.

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