Far Hills NJ Real Estate 2011 Annual Market Report

 Far Hills NJ Real Estate 2011 Annual Market Report

                               by Bob Zorechak - GRI, ABR, e-PRO

Find out the latest real estate market information for Far Hills NJ through 2011 in addition to a look back at the years in between to 2005. See what the trends are indicating and what is next for the Far Hills NJ real estate market. If you are considering buying and or selling a home in 2012 in Far Hills NJ, this valuable annual market report is an absolute must read.

Attention... all residential real estate is local! Not everything you read about online, in the papers and hear through major media outlets about the housing market is correct or relevant, especially when information is presented on a "national" or "regional" basis. There are many factors that make up the differences in local real estate markets, even from town to town and especially in a state like New Jersey with its inordinate amount of municipalities making it a challenge for some to drill down and obtain the correct market value of any given home. This is why it is important for both buyers and sellers to start with the latest "local" market data before they make any real estate decisions.

As you can see from the chart above the volume of  Closed Sales in Far Hills has been a bit of a mixed bag. The good news is that 2011 saw the most homes sold in past 6 years. The amount of Listings has been unusually high in recent years, although, inventory has decreased significantly by 30% from this same time last year down from 15.2 to 10.6 months, which is a step in the right direction.

Simply stated, "inventory" represents the number of homes currently available or For Sale in a given market, or in this case a specific town. This means that with all things remaining equal, at the current rate of sales, it will take a little more than 10 1/2 months to sell all of Far Hills current inventory. This figure indicates that Far Hills, like many of the surrounding towns is experiencing what we call a "Buyer's Market" and will remain so for at least the short term. A buyer's market is considered to be a market with an inventory of 7 or more months worth of homes to sell at any given time. With more homes to choose from, not to mention record low interest rates and low prices, things remain very advantageous to buyers right now. A "Balanced" or normal market is considered to have 5 to 6 months worth of inventory with no distinct advantage to either Buyers or Sellers.

The chart above indicates a rather volatile trend in both the Average and Median Sale Prices in Far Hills NJ over the past 7 years. The volatility is primarily due to two factors: the limited amount of homes For Sale in such a small town such as Far Hills in addition to the huge disparity in price ranges within this market. As a result, when a few of the higher priced estates sell, it has a significant impact on the data. Conversely, the same holds true for when there are long periods without a sale of some larger homes driving these numbers downward. Based on the excess amount of inventory, I would expect to see prices in Far Hills continue to decline at least for the short term.

What Does the Market Hold for 2012?

Follow the link below to find out in addition to reading the rest of this Far Hills 2011 Annual Market Report:

Far Hills 2011 Annual Market Report

For more information on Far Hills including the school system, follow this link:

All you need to know about Far Hills NJ