Market Report - Homes for Sale - Mays Landing, NJ - September 2014
Single Family
The Mays Landing Real Estate Market is showing little to no improvement as we head into the fall season. September saw a 13.3% increase in new listings coming on the market over September of 2012. 34 new single family homes where introduced to the market.
The number of Mays Landing single family homes for sale year to date period ending September 30th is up 25.7% over the same period last year. A total of 323 single family homes have been listed year to date.
The number of sold properties, in September, where down 15.8%. Only 16 sold single family properties. This brings the current total of sold properties for the year to date period to 116. A 9.4% decrease from the 2013 year to date period.
Combined, the total number of newly listed Mays Landing NJ Homes for Sale and total inventory versus the number of properties being sold has pushed the months supply of inventory to 15.5 months. This denotes an extremely strong Buyers Market.
Average Days on Market is down 1.5% for September to about 2 months. The running total for the year to date period is just over 3 months. 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 aggressively 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 negotiated 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 are 22.8% compared to September 2012. The year to date Median Sale Price is down 1.9%. Median Sale prices are very unlikely to gain any traction in the Hamilton Township/Mays Landing Market. Unemployment continues to remain the highest in the State and higher than most areas of the country.
55+ Adult Community Homes
The number of newly listed Mays Landing Adult Community homes for sale in September were up 133.3% over September 2013. 7 new listings where introduced to the market in September. Year to date the number of new listings is down 12.2%.
Sold properties in August where even with last September with only 6 sold adult community homes. This brings the current total of sold properties year to date to 36. A 16.3% decrease from the prior year to date period.
Combined, the total number of newly listed Mays Landing NJ Adult Community Homes for Sale and total inventory versus the number of properties being sold has pushed the months supply of inventory to 9.6 months. A 1.1% increase from 2013. This denotes a Buyer's Market, and it is similar to where we were last year.
Days on Market for September was 30 representing a decrease of 85.6%% from last September. Average Days on Market year to date is down% 52.8 to 84 days. Days on Market only reflects the properties that have sold and not an average of the total inventory that is currently available. With a low number of sold properties, a very quick sale, or an incorrectly reported sale, can cause a large deflection in the Days on Market in a single month.
Median Sale Prices for this September were up 22% over last September to $165,950. Because of the very low number of adult community homes being sold each month the Median Sale Prices tend to be unreliable on a month to month comparison. With an average of just 4 sold properties per month, a very low sale or a very high sale can cause a large deflection in the Median. For the year to date period, which provides a more reliable gauge, Median Sale Prices have increased 13.5%.
It will be interesting to see if, in fact, Median Sale prices of Homes for Sale in the Mays Landing 55 + Adult Community Market will able to gain any traction.
Condos for Sale - Mays Landing, NJ - Market Trends
The Mays Landing Condominium Market is showing no improvement in the number of condos sold as we head into the fall season. September saw a 21.4% decrease in new listings coming on the market over September of 2013. 11 new condos where introduced to the market.
The number of new listings of Mays Landing Condos for Sale in the year to date period ending September are down 11.7% over the previous year to date period.
Sold properties in September where down 77.8% with only 2 sold condominiums. This brings the current total of sold properties for the year to date period to 46. This represents a 35.2% decrease over the same 2013 period.
Combined, the total number of new Condo listings for Sale in Mays Landing, NJ and total inventory versus the number of properties being sold has allowed the months supply of inventory to increase by 16.2% to 11.5 months of supply. This denotes a very strong buyer's market.
Average Days on Market for September is down 60.2% to just over 1 month. Days on Market only reflects the properties that have sold and not an average of the total inventory that is currently available. Days on Market for the year to date period is up 8% to 95 days.
Another factor that is contributing to the decline in Days on Market is that Mays Landing Condo Short Sale properties are closing considerably faster than they were a year ago. Short Sales presently represent 20 to 30 percent of the market sales. A year ago many were taking 6 to 9 months to close. This year, if negotiated 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 are less encouraging as prices were down by 24.5% over September 2013. Because of the very low number of condos being sold each month the Median Sale Prices tend to be unreliable on a month to month comparison. With an average of only 5 sold properties per month, a very low sale or a very high sale can cause a large deflection in the Median. For the year to date period, which provides a more reliable gauge, Median Sale Prices are up 0.3%.
Do to the economic environment many condo associations are experiencing delinquency rates in the collection of monthly condominium association fees. This makes the units ineligible for financing with less than 20% down payment, substantially reducing the pool of available buyers. This factor will continue to keep downward price pressure on the Condos for Sale in Mays Landing. A large percentage of purchases have been made by investors.
Median Sale prices overall for condos are very unlikely to gain any traction in the Mays Landing Market.
Unemployment continues to remain the highest in the State and higher than most areas of the country.
Mortgage Rates declined slightly as of this this writing and are in the 4% range. As can be seen in the below graph, we continue to stay in the same side ways price channel we've been in 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.
If you are considering the sale or purchase of a home give us a call to benefit from our 35+ years of experience.
By Bill Wagner
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Content written and published by Bill Wagner - Wagner Real Estate Group
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