Happy New Year, Franklin Lakes!
It is now time to recap our 2009 market and make some 2010 predictions for Franklin Lakes, NJ real estate. I want to disclose that unlike most of the state, Franklin Lakes has a very low inventory and low home sale figures compared to most areas of NJ, moreso in the country. As many know, Franklin Lakes is dominated by estates and multi-million dollar real estate listings. Just one single sale can alter the monthly figures quite a bit.
Before we get into the numbers, don't forget to browse all Franklin Lakes homes for sale via our customized MLS / IDX gadget which has all listings updated every 24 hours.
Due to time constraints and deadlines to complete our reports, we have generated all statistics from the NJMLS which is the dominant MLS system for Franklin Lakes. So without further ado, let's see how Franklin Lakes real estate did this year!
- 66 Homes Sold in Franklin Lakes during 2008
- Average Sales Price was $1,386,420
- 74 Homes sold in Franklin Lakes during 2009
- Average Sales Price was $1,129,598
The comparison of 2008 and 2009 shows that there was a 10% increase in sales volume in 2009. The comparison also shows there was an 18.5% decrease in average selling price. See official chart attached in the following link. (Franklin Lakes Official Home Report)
As shown, Franklin Lakes' prices have dramatically dropped since its peak, but remain nearly 15% higher than what they were a year ago today. Month over month in each Q4, sales have nearly doubled in 2009 when compared to the same time last year which saw the U.S housing market in a very vulnerable state.
Absorption Rate: An absorption rate indicates the number of months it takes to sell the current inventory at the present rate of sales.
There are currently 93 homes for sale in Franklin Lakes NJ. During the month of December, 8 Homes sold according to the NJMLS. This puts today's Franklin Lakes rate of absorption at nearly 12 months.
NJ Real Estate Guys Franklin Lakes 2010 Prediction: At the end of 2009, the average sale price of a home stood at $1,129,598. We anticipate a similar pattern for Franklin Lakes during 2010. We do not anticipate a V-shaped recovery for the area but rather an up and down consistent wave pattern, although it is not obvious that we have seen a total collapse of the Franklin Lakes real estate market. The difference in Franklin Lakes is money, plain and simple. More homeowners in Franklin Lakes can afford to "ride it out" as opposed to other blue collar areas of NJ with lower, yet above average incomes. Even though the average sale price is down from 2008, throw in only a couple of $2 million sales and see what happens. That being said, we expect prices to skip around where the median should stagnate, if not come slightly lower in 2010. We expect a gradual continuation of normal appreciation by Q1 of 2011.
Our opinion is that we feel it is a good time to buy in Franklin Lakes. As mentioned, we do not anticipate a noticeable decline in values in 2010 so the entire year should provide an opportunity where prices should be where you want them when you want them. If you LOVE the home, then buy it. Don't wait on a home to come down in price if you LOVE it, especially in 2010. We have seen far too many this year lose their dream home because they wanted to see how much lower the price would get. It didn't, and it sold to another buyer.
If you are looking to buy or sell real estate in Franklin Lakes, look no further than the NJ Real Estate Guys. We would value an opportunity to interview for the job of being your real estate professional. Please contact us for a consultation and we would be happy to meet with you at your soonest convenience. Happy New Year!