The hot Westfield, NJ real estate market cooled off just a bit in January (but then again, EVERYTHING cooled off in January!!), with fewer closed sales of single family homes than the previous month. Additionally, year-over-year closed sales for January were down.
This is certainly not a surprise, coming off of the pending sales that went under contract during the traditionally slower holiday season.
Oddly enough, while the day-on-market went up significantly, the list-to-sale price ratio also inched up. These to indicators are often tied together, with overpriced homes sitting on the market not realizing sales close to the asking price.
Another, positive sign is that the median sales price for single family homes in Westfield, NJ was up 23% year-over-year, to $663,500.
Finally, the indicator of whether we are in a Buyer's or Seller's market, the absorption rate (how long it would take for all of the inventory to sell if nothing new comes on the market), is still very low in Westfield, NJ, just 2.4 months. This tells us that we remain in a Seller's market.
The outlook for the coming months is extremely positive. Higher prices should increase the inventory of homes for sale, and the still-low interest rates combined with the spectre of higher rates and increasing prices should bring the Buyers out in droves.