14 Basking Ridge properties have gone under contract since 2/1/2010:
There are another nine homes making their way through attorney review and with 167 properties available, current market absorption is at 6.9 months for the township. Breakdown of market absorption by price range:
- under $300,000: 2.25 months
- $300,000-$500,000: 14 months
- $500,000-$700,000: 6.3 months
- $700,000-$900,000: 7.7 months
- $900,000-$1,300,000: 5.7 months
- over $1.300,000 - there have been no sales in this price range since January 4th when 28 Fawn Lane went under contract and then closed for $1,375,000 after almost a year on the market and almost a 20% price reduction from it's original list price of $1,799,000.
I am working on market analyses for two properties that I believe will list in the low to mid $500,000's; so I have also calculated market absorption for $450,000-$550,000. That comes out to about 10 months. I am not sure how to explain the lag in that middle-range price point. My educated guess, looking at sales activity, is that first time buyers are choosing lower priced condos and townhouses and people moving up from there are choosing homes in the $500,000-$700,000 range. Leaving the $300,000-$500,000 range to be a little sluggish.
As a seller in that price range, my recommendation is to price the property as attractively as possible in order to be the next to sell. Buyers are looking for VALUE - you want to be the property that offers the most in that price range: either your are the biggest house, or the most udpated house, or something that makes you stand out. Work with your Realtor to understand your competition and price accordingly.
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