Cranford NJ Real Estate Market News..."What's Happening Out There?"
With all of the news media reports about the ‘national' economy, and the ‘national' real estate market, it is very difficult to decipher exactly what that means for towns like Cranford. There really is no such thing as a "national" real estate market, as people who purchase homes in a community often work in that community, or within commuting distance. This means that they earn money locally, and usually spend that money locally. The national media often reports on national statistics, and while they can be helpful to uncover trends in the macro-economy, it is important to understand that the Real Estate market, and even the economy are highly localized, and can vary tremendously from one state to the next, or even one town to the next.
In this month's Market News, I thought it would be helpful to share what's happening now, while also comparing it to historical data, to illustrate how Cranford real estate has performed from its peak of 2005-2006 to the present. Whether you are buying or selling, or just live in Cranford, this information can help you better understand how the recent recession has affected the local picture.
Here are some Cranford, NJ Real Estate statistics:
Year to Date 2009
Active Listings: 962
Closed Transactions: 119
Average Days on Market (DOM): 65
Average Sold Price: $428,272
Average Final List Price: $437,684
Sales Price to List Price Ratio: 96%
These statistics don't mean much unless compared with other periods in time, to see how the market is trending. So, let's compare with the same period 2008
January through September 15, 2008
Active Listings: 917
Closed Transactions: 144
Average DOM: 68
Average Sold Price: $444,374
Average Final List Price: $461,633
Sales Price to List Price Ratio: 96%
What does all of this mean?
Well in looking at the averages, here are some factual conclusions:
- Average Sales Price declined by approximately 3.7%
- Number of closed transactions declined by approximately 13%
- Number of active listings increased by nearly 5%
In summary, with gradual price declines, and substantial increase in listings for sale, it demonstrates that thus far, 2009 was more of a buyer's market for Cranford than 2008.
Examining the numbers in more detail showed a steep decline in listings sold in February and March of 2009, as this was the height of the financial crisis on Wall Street started by the collapse of Lehman Brothers in September of 2008. After beginning the 2nd quarter of 2009, the home sales stabilized in Cranford again, and so much of the declines in price occurred in a short period of time at the beginning of this year.
Here is one more comparison. When we compare the 2009 data with data from the peak of the market in 2005, here is how the 2009 market compares:
Number of Closed Transactions: Decline of 45% since 2005
Average Sales Price: Decline of 10.4% since 2005
Sold Price to List Price Ratio: Decline from 99% to 96%
Active Listings for Sale: Increase of 38%
Here is another very important statistic, which is number of expired listings which failed to sell:
2004 - 6 expired listings
2005- 15 expired listings
2006 - 23 expired listings
2007 - 43 expired listings
2008 - 50 expired listings
To help you understand what all of this means, here are some general observations when examining this data:
- Cranford sellers who price their homes competitively and at today's market value will sell their homes successfully in approximately 65 days, for approximately 96% of list price
- Sellers who overprice their homes are 9 times more likely not to sell their home than at the market peak.
- These numbers are averages only. Homes for first time buyers have been selling more strongly than "move up" homes, and the price declines in homes priced from $500,000 to $800,000 have been more severe than the less expensive homes. Be sure to get an accurate market analysis or appraisal before listing your home for sale.
- Cranford buyers will be purchasing their home today at anywhere from a 10-20% lower price than they would have had just a few years back, depending upon the price range of the home they are buying. If a home is properly priced, there will likely be high interest, so offer fairly. If the home is not priced properly, use the comparable data to negotiate the best possible price.
- Cranford has remained a stronger market than many other local towns because of the strong school system, access to transportation, and limited "investment, or speculative" buying during the real estate boom. The primary driver of the market and prices going forward will be employment, both locally and in New York City.
Thanks for reading, and check back next month for more of Cranford, NJ Real Estate Market News.
For comment, or for more information about the local Real Estate Market in Cranford, NJ, Sean Carroll can be reached at 908-376-1569, or via email at Sean@TeamCarrollNJ.com