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Middlesex County NJ Market Commentary for February 2010 - Part 2

By
Real Estate Agent with Metuchen Keller Williams Elite Realty / Middlesex County, NJ

  Middlesex County NJ Real Estate Statistics - Part 1

Middlesex County NJ Market Commentary for February 2010 - Part 2

For Middlesex County NJ, the number of new homes listed in February has decreased (-13%) compare to new homes listed in January. It is also lower than last year (-4.3%). This is positive for Middlesex County real estate market in general as we need to keep on reducing the inventory to move into a more balanced / neutral market.

The Active Inventory as we follow it (homes for sale not including "under attorney reviews") has increased to 2511 homes for sale in Middlesex County NJ. The Active Inventory has been consistently decreasing since April 2009 but has been increasing since last month. The active inventory picked over 2900 homes in 2009.

This month's absorption rate (134) or number of sold homes has decreased 32% versus last month and decreased versus last year (-16.8% February-2009).

Days of Inventory (DOI) has increased 39.7% versus January. It is a result of the increased active inventory and lower absorption rate. At 524 days, it means it would take about 17 months to sell all existing inventory at the same absorption rate. A market with over 6 months supply would usually qualify as a buyer's market. A market with less than 6 months of supply would usually qualify as a seller's market.

The average sold price has slightly increased (2.2% Vs January). The median sold price increased 4.2%. Year to year decreased versus last year is confirming a yearly downtrend.


SP/AP ratio has increased one point to 95%. In average, sellers are accepting offers at 95% of their last asking price. Please note that I mentioned "last asking price" and not "original asking price" which is very different. As a general rule, houses that sell are houses that are very close to their current market value as calculated through a Comparative Market Analysis.

Another real estate statistic is Days on Market or DOM which has decreased to 84 days. Meaning that it takes about 3 months in average to go under contract. A word of caution with this indicator as it is not a cumulative DOM. Meaning the clock re-starts with any new contract for the same home. This is a good example of the better value of looking at those statistics, which is more in the trend analysis than in a specific number at a specific given time.

That's the end of our local market commentary based on Middlesex County NJ real estate statistics. As always, contact me if any questions. 

 

Piscataway real estate , Metuchen real estate and North Edison real estate in Middlesex County New Jersey.

 

Catherine "Cathy" Chaudemanche
Realtor Associate
Circle of excellence 2009
Agent Leadership Council
Keller Williams Realty.
Middlesex County NJ Market Center-

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Posted by
Catherine "Cathy" Chaudemanche Team, ABR, SRS, SRES
Local Realtor Associate - Agent Leadership Council
New Jersey Association of Realtors Circle of Excellence Sales Award - 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018
Certified Luxury Home Marketing Specialist
 
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