Bridgewater Township , Somerset County , New Jersey has shown glimmers of hope as the market is inching upwards albeit at a snail's pace. And because real estate has always been cyclical, these new numbers may indicate a faint light at the end of our long tunnel.
In December, 2010, Bridgewater NJ had a total of twenty four (24) homes that were placed Under Contract, which is a slight increase to the twenty three (23) Bridgewater NJ homes placed Under Contract in December, 2009. Our total inventory of homes for sale in Bridgewater, NJ, increased by thirty five (35) newly listed homes for sale, and therein lies our biggest problem: The number of homes for sale in Bridgewater NJ continues to increase at a higher pace than the number of homes placed Under Contract. Currently, Bridgewater NJ has a total of two hundred (200) homes for sale, as compared to 196 homes for sale in Bridgewater NJ at the same time in 2009. Until the pace of our homes Under Contract increases, we will continue to see falling prices due to supply and demand. In other words, with 200 homes for sale and 23 buyers (homes under contract) we currently have (almost) 9 sellers for every one buyer.
There are four primary reasons for the Bridgewater NJ increase in inventory:
1. We have fewer move-up buyers. Today's buyers are downsizing, and first-time homebuyers have lower budgets.
2. New Jersey continues to lose private sector (higher paying) jobs.
3. Tax Credits for home purchases have expired, and it is unlikely they will be reinstated.
4. Continuing foreclosures with a shadow inventory that is building.
Many Move-up buyers cannot move up because they are upside down on their mortgage, which prevents them from being able to purchase a larger home until the price of their home increases. At the sales pace of today's market, this may take another ten (10) years.
To put some perspective on our job market, in 2010 New Jersey has lost an average of 3,900 jobs per month. In Somerset County the news is better, but still higher than in past years. Until we begin to attract high paying jobs in both the county and state, our higher priced homes will continue to lag in sales. This has also contributed to the McMasions slump in sales.
With an emphasis on reducing our national debt, it appears unlikely that a 2011 tax credit for home purchases will be reinstated. However, if you notice the jump in the number of contracts in homes for sale in Bridgewater, NJ in April, 2010 (when the last tax credit expired) it showed a noticeable spike to the year's high of 64 homes under contract.
Although Somerset County New Jersey foreclosure rates are relatively low, we are seeing a shadow inventory building, which may impact home sale prices in 2011 and beyond.
There is several pieces of very good news in Bridgewater NJ home prices in December, 2010. Firstly, we had three homes with a list price of over one million dollars ($1M) Under Contract in Bridgewater NJ in December, 2010, which is a record for any month for 2010. These contracts raised the average list price considerably. Secondly, our average price of new listings of homes for sale in Bridgewater New Jersey is down, which may indicates that we will see an increase in home sales ahead (albeit at possibly the same lower prices) which will clear some of the existing inventory. The numbers also indicate that homes that closed title in December of 2010 in Bridgewater NJ had a lower sale price than in the previous seven (7) months.
What can you expect if you need to sell your Bridgewater NJ Home in 2011? First, don't put it off! Indications are interest rates are on the rise. Higher interest rates will reduce the number of buyers in the marketplace. Second, we anticipate a continuing decline in home prices in 2011. The longer your home is on the market, the more likely the price will decline. With two hundred (200) homes currently for sale in Bridgewater NJ, and a total of twenty six (26) homes Under Contract, we have one buyer for every eight (8) sellers. The average days on the market in Bridgewater NJ is up to ninety one (91) days. These numbers do not reflect any prior times (and days) the home may have been listed without selling.
What do you do if you need to sell your Bridgewater NJ home? Assess your situation carefully and honestly. If you need to sell your Bridgewater home, don't put it off! In this market, you'll need a Realtor® who will be as serious as you are about selling your home. The Realtor® you choose should evaluate your home in detail and present a convincing Market Analysis that shows exactly where your home should be priced in the market. If you are not convinced, get a second, or third opinion, but keep in mind, the definition of "the market" is what a buyer is willing to pay, and not what you may hope (or need) to get from the sale. Sometimes that's a tough pill to swallow, but your Realtor® should provide you with convincing evidence that her figures are correct. My customized Market Analysis is over 50 pages of concise and customized information with detailed assessments of your individual home. It's also very important to keep in mind the reason you hire a Realtor® (i.e. what you are paying a Realtor® to do for you). Do not make the mistake of choosing a Realtor® because they've given you a higher market value of your home than the others. That's an old trick that inexperienced Realtors® do to get your business. Then, once your home is on the market, they'll tell you why you need to continually reduce the price. You are paying a Realtor® to market your home in order to bring the most buyers through the door. Once the buyers have viewed your home, their feedback will tell you what you need to know. So when choosing a Realtor® compare their marketing plans to see how they plan to get qualified buyers into your home. In short, that's exactly what you're paying a Realtor® to do for you: Successfully market your home. When you're ready to take the first step, let's talk. Call me at (908) 537-6596. I look forward to hearing from you. In the meantime, visit my website and "LIKE" me on Facebook.
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