Bernardsville NJ Real Estate Market Update SEPTEMBER 2014

Bernardsville NJ Real Estate Market Update SEPTEMBER 2014

by Bob Zorechak - GRI, ABR, e-PRO

The numbers for Bernardsville are down significantly for September 2014 in 4 out of 4 categories. In fact, this was the slowest SEPTEMBER in at least the past 5 years:

• The rolling 12 month sales volume has decreased significantly by forty (40) units or (32%) - Last year: September 2012 thru September 2013 with (126) homes sold as compared to the current period: September 2013 thru September 2014 with (86) homes sold.

• The September year-to-date numbers are down dramatically again for the fourth month in row at forty-eight (48) units or (44%) when compared to last year's total of (109) homes sold to the current period with (61) homes sold. This is the lowest YTD total through September by far in at least the past 5 years.

• The monthly volume for the number of sales occurring last September was thirteen (13) homes sold, as compared to this September with ten (10) homes sold is down by three (3) units or (23%).

• The volume of Pending Sales (Under Contract) as of the last day of September 2014 is running slightly lower at eight (8) units as compared to last year at this same time at nine (9) units, which is down by one (1) unit or (11%).

•  The supply of available inventory (the time it would take to sell all of the homes currently on the market) as of the end of September is at 13.8 months, which is up substantially (50%) when compared to last year's inventory at 6.9 months. Basically this indicates that the Bernardsville market has a lot more inventory for Buyers to choose from and is even less "balanced" now than in prior years. The result of this condition will no doubt keep downward pressure on the prices of homes in Bernardsville at least for the near term.

  Note: A "balanced" market is considered to have a 6 month supply. Anything below that amount would be considered a "low" inventory and thus less than balanced. This market condition typically favors Sellers.  Anything above a 6 month supply would result in a "high" inventory of homes on the market and typically favors Buyers.

Read below to find out the very latest information on your local Bernardsville NJ Real Estate market!

The Bernardsville market has been struggling for most of the year, especially in the 3rd quarter with significantly decreased sales as compared to last year.  Inventory has doubled from what it was last year at this time.  In addition, the decrease in the amount of Pending Sales or homes Under Contract is not a positive sign and could have a negative impact at least for the short term outlook.

Another point worth mentioning regarding inventory are those sellers pricing their homes as if we are back in the boom days of the early 2000's, which is certainly not the case. This tactic only serves to slow the market down and clutter it up with overpriced homes that will take a long time to sell. Unfortunately, the agents who take these listings are more to blame than the their seller clients, as they do this for a living and should know better.  As a result of all of this excess inventory, the buyers are definitely in control and will stay that way until things start moving again. With that said however, it is not an uncommon occurrence for homes to sell for close to or even above the List Price, sometimes with multiple bids, when sellers price their homes correctly from the very beginning.  By pricing too high in the beginning only means less money for the seller in the end.

Look below to see the individual homes that sold in Bernardsville NJ for the month of SEPTEMBER in 2014.  Also shown below is a graph illustrating the amount of homes that have SOLD Year-to-Date through SEPTEMBER through the same period followed by another graph showing the year to year comparison for homes SOLD in the month of SEPTEMBER over the past 5 years.