Homes for Sale - Linwood, NJ - Real Estate Trends - May 2014
The Linwood, NJ Real Estate Market is showing a modest overall improvement as we head into the summer season. May saw a 25% increase in new listings coming on the market over May of 2013. 25new single family homes where introduced to the market.
The number of newly listed single family Homes for Sale in Linwood, NJ during the 12 month period ending May 31st is up 26.6% over the previous 12 month period.
Sold properties in May where up 16.7% over last May with 7 sold single family properties. This brings the current total of sold properties for the 12 month period to 84. A 33.3% increase over the previous 12 month period.
Combined, the total number of newly listed Linwood, NJ Homes for Sale and total inventory versus the number of properties being sold has allowed the months supply of inventory to increase to 19.4 months. A 50.4% increase from 2013 when it stood at 12.9 months. This denotes an strong Buyers Market.
Average Days on Market in May were up 13.5% to 3 months. Days on Market for the running 12 month period is down 22.8%. 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 Linwood, NJ are closing considerably faster than they were a year ago. Short Sales presently represent 9 percent of the active inventory in Linwood. 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 May were down 15.4% over May 2013. The 12 month Median Sale Price is up 18.4%. It will be interesting to see if Median Sale prices of Homes for Sale in the Linwood, NJ market are beginning to gain some traction.
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 are between 4 and 4 1/2%. 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 - Linwood NJ - May 2014
By Bill Wagner
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