Homes for Sale - Absecon, NJ - Real Estate Market Trends - January 2015
Single Family
The Absecon Real Estate Market is showing little improvement for January. January saw a 23.1% increase in new listings coming on the market over January 2014. 16 new single family homes where introduced to the market.
The number of single family Homes for Sale in Absecon, NJ during the year to date period is the same nas we are in the first mointh of the new year.
Sold properties in January where down 40% with 3 sold single family properties. This brings the current total of sold properties for the year to date period to 3. A 40% decrease from last January.
Combined, the total number of newly listed Absecon NJ Homes for Sale and total inventory versus the number of properties being sold has allowed the months supply of inventory to increse to 16.1 months. A 64.3% increase from January 2014. This still denotes a strong Buyers Market.
Average Days on Market in May are up 46.3% to just over 3 1/2 months. Days on Market only reflects the properties that have sold and not an average of the total inventory that is currently available. 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.
There are still a significant number of Short Sale properties in Absecon, NJ. Short Sales presently represent 17+ percent of the market sales.
Median Sale Prices for this January are down 64% from January 2014. It would have to be assumed that the severe drop in median price is due to a number of distressed properties being liquidated. It will be interesting to see if, in fact, Median Sale prices of Homes for Sale in the Absecon, NJ market are beginning to level off as the year progresses.
Unemployment continues to remain the highest in the State and higher than most areas of the country. Unemployment in Atlantic County is the biggest detriment to prices we face. If prospective buyers do not have decent paying, full time jobs, they do not qualify to purchase. The result is a much smaller pool of buyers and reduced demand.
Mortgage Rates have been steady 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 interest rates fairly stable, the Median Sale prices will most likely remain relatively flat. When interest rates increase, buyers qualify for lower mortgages and as a result can afford to pay less for a home.
Overall
The closing of 4 casinos, and the possibility of a fifth, has had a major affect on market prices. Unemployment continues to increase to the highest level in the State, and higher than most areas of the country.
Unemployment in Atlantic County is the biggest detriment to prices we face. If prospective buyers do not have decent paying, full time jobs, they do not qualify to purchase. The result is a much smaller pool of buyers and reduced demand. Adult community homes are less sensitive to employment numbers because many occupants are retired.
Mortgage Rates are also predicted to gradually climb and at this writing are in the 4 to 4.5% range. As can be seen in the above graph, we continue to stay in the same side ways price channel we've been in for the last three years.
Homes for Sale Absecon NJ Market Trends January 2015
By Bill Wagner
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Content written and published by Bill Wagner - Wagner Real Estate Group
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