Cranford, NJ, is a lovely town in central Union County and is home to roughly 23,000 people. The real estate market in Cranford has remained healthy throughout any dips and twists that the rest of New Jersey has taken. A sharp decrease in inventory over the summer, leading to a corresponding increase in prices as shown in the graphs below.
These two statistics together lead us to the absorption rate. The absorption rate of a town is the number of months it would take for the current inventory to be sold off at the current rate of sales. In Cranford, the absorption rate has been dropping since late spring and has only just begun to increase with the predictable and typical autumn decrease in sales.
The absorption rate is the data upon which real estate professionals identify a market as a "buyer's market" or a "seller's market." If the absorption rate is above 6 months, there are more homes than there are buyers and the market is said to be a buyer's market. If the absorption rate is below 6 months, there are more buyers than there are homes and the market is said to be a seller's market.
The absorption rate in Cranford has been below 6 months since early summer and this nearly always is accompanied by an increase in average sales price, which is what we've seen in Cranford as well. Prices are well above what they were six months ago.
For more information on the real estate market in Cranford: