Tewksbury NJ Real Estate Market Update OCTOBER 2014

Tewksbury NJ Real Estate Market Update OCTOBER 2014

by Bob Zorechak - GRI, ABR, e-PRO

The numbers for Tewksbury in OCTOBER of 2014 have remained steady as compared to last month and also last year at this same time, although inventory is up substantially again this month:

• The rolling 12 month sales volume is down moderately by 12% or eleven (11) units - October 2012 thru October 2013 (88 homes sold) as compared to October 2013 thru October 2014 with (77 homes sold).

• The October year-to-date numbers are down moderately by 14% or eleven (11) units when you compare the current period (66 homes sold) to last year's year-to-date total (77 homes sold). This is the second highest level for this category in at least the past five (5) years.

• The monthly volume for the number of sales occurring this October was nine (9) units, which is up slightly from eight (8) units or (12%) as compared to this same time last year. This is the highest level for this category in at least the past five (5) years.

• The volume of Pending Sales (Under Contract) as of the last day of October 2014 is running significantly higher at nine (9) units as compared to last year at this same time at six (6) units, which is up by three (3) units or (50%).  This increase indicates that the Tewksbury market should have a solid November.

•  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 October is at 13.9 months, which is up substantially (42%) when compared to last year's inventory at 9.8 months. Basically this indicates that the Tewksbury market has a lot more inventory for Buyers to choose from and is even less "balanced" now than in prior years. In fact, you would have to go back to 2011 in order to see this high level of inventory on the market. The result of this condition will no doubt keep downward pressure on the prices of homes in Tewksbury 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 Tewksbury NJ Real Estate market!

The Tewksbury market appears to have hit a snag as the Year-to-Date sales volume continues to fall below last year's unusually high sales totals, although that difference has been narrowing for the past several months.  In addition, inventory is up significantly from this same time last year (42%), however it is the lowest it has been in the last four months. On a positive note, there is some help in sight from the number of homes (9) that are Pending or Under Contract.

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 seller's 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 Tewksbury NJ for the month of OCTOBER in 2014.  Also shown below is a bar graph illustrating the amount of homes that have SOLD Year-to-Date through OCTOBER over the past 5 years, followed by another graph showing a year to year comparison for homes SOLD in in the month of OCTOBER over the same 5 year period.