Tewksbury NJ Real Estate 2011 Annual Market Report
by Bob Zorechak - GRI, ABR, e-PRO
Find out the latest real estate market information for Tewksbury 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 Tewksbury NJ real estate market. If you are considering buying and or selling a home in 2012 in Tewksbury 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 both Closed Sales and Listings in Tewksbury has been fairly steady throughout the past 7 years, although the amount of Closed Sales has increased for the past 3 years in a row, which is a positive sign in an otherwise weak local market. Inventory has decreased significantly by 21% from this same time last year down from 21.5 to 17 months, which is a big 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 approximately 17 months to sell all of Tewksbury's current inventory. This figure indicates that Tewksbury, like many of the surrounding towns is experiencing what we call a strong "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 mixed trend in the Sale Price of homes in Tewksbury NJ over the past 7 years. This is primarily due to two factors: an overall weak economy, which has a direct affect on the housing market along with Sellers refusing to price their homes close to their market value from the very beginning and then compounding the situation by not reducing their price in a timely manner. This scenario causes inventory to go up, and the listings to become "stale" because they are on the market much longer than the norm, resulting in a stagnant local market condition like the one we are currently experiencing.
Based on the excess amount of inventory, I would expect to see prices in Tewksbury continue to decline at least for the short term until some of the older inventory is finally sold off or withdrawn from the market.
What Does the Market Hold for 2012?
Follow the link below to find out in addition to reading the rest of this Tewksbury 2011 Annual Market Report:
For more information on Tewksbury including the school system, follow this link: