Homes for Sale - Absecon, NJ - Real Estate Market Trends - October 2013
The Absecon Real Estate Market is showing a modest overall improvement as we head into the fall season. October saw a dramatic 85.7% increase in new listings coming on the market over October of 2012. 13 new single family homes where introduced to the market.
The number of single family Homes for Sale in Absecon, NJ during the 12 month period ending October 31st is up a slight 4.9% over the previous 12 month period.
Sold properties in October where even with last October with 6 sold single family properties. This brings the current total of sold properties for the 12 month period to 76. An 18.8% increase over the previous 12 month period.
Combined, the total number of newly listed Absecon NJ Homes for Sale and total inventory versus the number of properties being sold has allowed the months supply of inventory to drop to 10.1 months. A 24.6% decrease from 2012. This still denotes an strong Buyers Market, but it is a significant improvement.
Average Days on Market in October are up 109.1% to just over 2 months. Days on Market only reflects the properties that have sold and not an average of the total inventory that is currently available. There are several factors contributing to this drop. More sellers realize that the market is really soft and are pricing their homes aggressively in order to get them sold. Many are relocating out of state where housing costs are lower.
Another factor that is contributing to the decline is that Short Sale properties in Absecon, NJ are closing considerably faster than they were a year ago. Short Sales presently represent 20+ percent of the market sales. A year ago many were taking 6 to 9 months to close. This year, if negotiatiated properly they are only taking 3 to 4 months average with some closing as fast as 5 to 6 weeks.
Median Sale Prices for this October are up 12.4% over the October 2012. The 12 month Median Sale Price is up 6%. It will be interesting to see if, in fact, Median Sale prices of Homes for Sale in the Absecon, NJ market are beginning to gain some traction or if this improvement just reflects the change in interest rates from last year.
Unemployment continues to remain the highest in the State and higher than most areas of the country. Unemployment in Atlantic County is the biggest detriment to prices we face. If prospective buyers do not have decent paying, full time jobs, they do not qualify to purchase. The result is a much smaller pool of buyers and reduced demand.
Mortgage Rates at this writing have fallen below the 5% mark. As can be seen in the below graph, we continue to stay in the same side ways price channel we've been in for the last three years.
With supply remaining high, demand light, and interest rates fairly stable, the Median Sale prices will most likely remain relatively flat. When interest rates increase, buyers qualify for lower mortgages and as a result can afford to pay less for a home.
Real Estate Trends - Homes for Sale - Absecon - October 2013
By Bill Wagner
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