Market Report-Homes for Sale- Egg Harbor City, NJ - September 2013
Single Family
The Egg Harbor City Real Estate Market is showing little to no improvement as we head into the fall season. September saw a dramatic 60% increase in new listings coming on the market over September of 2012. 8 new single family homes where introduced to the market.
The number of Egg Harbor City single family homes for sale in the 12 month period ending September 30th is up 44% over the previous 12 month period.
Sold properties in September where the same with only 3 sold single family properties. This brings the current total of sold properties for the 12 month period to 39. A 21.9% increase over the previous 12 month period.
Combined, the total number of new Egg Harbor City NJ Homes for Sale and total inventory versus the number of properties being sold has allowed the months supply of inventory to edge up to over 19 months. This denotes an extremely strong Buyers Market.
Average Days on Market is down 53% in September to just over 2 1/2 months. However, it is only down 3.9% for the running 12 month period. Days on Market only reflects the properties that have sold and not an average of the total inventory that is currently available. There are several factors contributing to this drop. More sellers realize that the market is really soft and are pricing their homes agressively in order to get them sold. Many are relocating out of state where housing costs are lower.
Another factor that is contributing to the decline is that Short Sale properties are closing considerably faster than they were a year ago. Short Sales presently represent 30+ percent of the market sales. A year ago many were taking 6 to 9 months to close. This year, if negotiatiated properly they are only taking 3 to 4 months average with some closing as fast as 5 to 6 weeks.
Median Sale Prices for this September were down 37.5% from September 2012. The 12 month Median Sale Price is down 4.1%. Median Sale prices are very unlikely to gain any traction in the Egg Harbor City Market. Unemployment continues to remain the highest in the State and higher than most areas of the country.
Mortgage Rates also continue to gradually climb and at this writing have reached the 5% mark. As can be seen in the below graph, the low number of monthly sales results in very extreme monthly swings in median sale prices with no truly decernable pattern for the last three years.
With supply remaining high, demand light, and increasing interest rates, the Median Sale prices will have no option but to go down. When interest rates increase, buyers qualify for lower mortgages.
By Bill Wagner
609-432-8005
If you are considering the sale or purchase of a home give us a call to benefit from our 35+ years of experience.
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