Middlesex County NJ Market Commentary for March 2010 - Part 2
For Middlesex County NJ, the number of new homes listed in March has increased 54% compare to new homes listed in February. It is also higher than last year (26.8%). With almost 1,000 new homes listed on the market, it is a peak for the last 3 years.
The Active Inventory as we follow it (homes for sale not including "under attorney reviews") has increased to 2763 homes for sale in Middlesex County NJ. The Active Inventory has been consistently decreasing since April 2009 but has been increasing since the beginning of the year. The active inventory picked over 2900 homes in 2009.
This month's absorption rate (256) or number of sold homes has almost doubled versus last month and increased as well versus last year (28%).
Days of Inventory (DOI) has decreased over 38% versus February as a result of the higher absorption rate. At 324 days, it means it would take less than one year 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 and median sold price have slightly decreased versus last month and slightly increased versus last year, same month.
SP/AP ratio has decreased one point to 94%. In average, sellers are accepting offers at 94% 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 or below 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 77 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.
Cathy Chaudemanche Team, Sunday 04/11/2010
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-
Previous posts and achives for Middlesex County Real Estate Statistics and Market Commentary
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