Branchburg, NJ Real Estate Market Update

By
Real Estate Agent with RE/MAX Classic Group

How's The Branchburg, NJ Real Estate Market?

   For the Fourth Quarter, 2010, the total number of homes for sale in Branchburg, NJ has been decreasing.  We ended the year with a total of eighty six (86) homes for sale, which is up by 31% over the same quarter, 2009.  

 Branchburg RE  

The Good News :  Our sale price has increased by 12% over same period last year.

Under Contract in Branchburg, NJ in the Fourth Quarter, 2010 averaged nine (9) contracts per month, while 2009 had and average of 11 per month.  We are still finding our way to the bottom of the real estate market.  As the weather warms and the spring market heats up, we will find some of  the homes now off the market will come back on the market and try again. 

The average list prices of  Home Contracts in Branchburg, NJ in Fourth Quarter, 2010, was $418,428, as compared to 2009, with an average list  price of  $368,816, which is an increase of 12%.  Why the increase in price?  Foreclosures have not been put on the market by the banks over the past several months due to the rob-signing scandal.  We will see those homes back on the market in early 2011.  

Branchburg Prices

Our Current Challenges:

*        We have fewer move-up buyers

*        New Jersey continues to lose private sector (higher paying) jobs.

*        Tax Credits for home purchases expired in April, and it is unlikely they will be reinstated.

*        Foreclosures' shadow inventory that is building.

 

The four Challenges in our Branchburg, NJ Real Estate Market .

  1. Many move-up buyers are unable to do so because they are upside-down on their mortgage.  
  2. In 2010 New Jersey has lost an average of 3,900 jobs per month.  In Somerset County the news is better, but still high. 
  3. It appears unlikely that we will see a 2011 tax credit for home purchases;  however, if you notice the jump in the number of contracts in homes for sale in Branchburg, NJ in April and May, 2010 (when the last tax credit expired) it shows a spike in homes under contract. 
  4. 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.

Also, worker productivity has increased in the past several years.  We are working longer and our time has become a valuable commodity.  Today's homebuyers are now seeking locations offering shorter commute, access to public transportation, and walk-able communities .  Commutability to higher paying jobs is appealing, so if we need to sell our Branchburg NJ Home, we have pricing and public transportation that will attract the upwardly mobile young families who commute to New York City. 

 

What can you expect if you need to sell your Branchburg 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 qualified buyers in the marketplace.  Secondly, we anticipate a decline in home prices in 2011.  The longer your home is on the market the more likely the price will decline.  Third, you'll need patience. With 86 homes for sale in Branchburg, NJ in December, 2010 and expected to increase as we approach the spring market, and a total of  ten (10) contracts in December, 2010, we currently have one (1) buyer for every nine (8+)  sellers.  The average days on the market is currently eighty nine (89) days.  This does not reflect any prior times (and days) the same home may have been listed without selling. 

What do you do if you need to sell?  You'll also 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.  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 to get from the sale.  Sometimes that's a tough pill to swallow, but your Realtor® should provide you with convincing evidence.  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 why you hire a Realtor®.  Do not choose a Realtor® because they've given you a higher market value of your home.  You are paying a Realtor® to market your home in order to bring the most qualified buyers through the door.  Once the buyers have viewed your home, their feedback will tell you what you need to know.  When choosing a Realtor®, review their marketing plans to see how they plan to get qualified buyers into your home. Visit my website to see more about how

 I can market your home.  When you're ready to take that first step, let's talk. My FB Logo Call me at (908) 537-6596.  I look forward to hearing from you.

 

 

Comments (1)

John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

Hi Vickie -

Kudos on creating an informative and knowledgeable market report on the Branchburg, NJ area.  With interest rates low and a decent inventory the challenges ahead can and will be over come.  It's a great time to buy now just to over come the negative media perspective and get the good word to the public.

Best regards from the Q

Oct 24, 2011 10:59 AM