Homes for Sale - Somers Point, NJ - Real Estate Trends - October 2013
The Real Estate Market of Homes for Sale in Somers Point, NJ is showing a modest overall improvement as we head into the fall season. October saw a 80% increase in new listings coming on the market over October of 2012. 18 new single family homes where introduced to the market.
The number of newly listed single family Homes for Sale in Somers Point, NJ during the 12 month period ending October 31st is up a slight 5.5% over the previous 12 month period.
Sold properties in October where down 40% over last October with 3 sold single family properties. This brings the current total of sold properties for the 12 month period to 65. A 19.8% decrease over the previous 12 month period.
Combined, the total number of newly listed Somers Point, NJ Homes for Sale and total inventory versus the number of properties being sold has pushed the months supply of inventory to increase to 12.3 months. A 10.8% decrease from 2012. This still denotes an strong Buyers Market, but it is only slightly worse than 11.1 months last year.
Average Days on Market in October are down 56.2% to just under 2 months. Days on Market for the running 12 month period is down 38.7%. 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 Homes for Sale in Somers Point, NJ are closing considerably faster than they were a year ago. Short Sales presently represent 15+ percent of the market inventory. A year ago many were taking 6 to 9 months to close. This year, if negotiated 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 were up 10% over October 2012. The 12 month Median Sale Price is up 11.5%. It will be interesting to see if, in fact, Median Sale prices of Homes for Sale in the Somers Point, 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. There does appear to be more stability growing.
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 - Somers Point NJ - October 2013
By Bill Wagner
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