Homes for Sale - Somers Point, NJ - Real Estate Trends - May 2014
The Real Estate Market of Homes for Sale in Somers Point, NJ is showing little improvement as we head into the summer season. May saw a 100% increase in new listings coming on the market over May of 2013. 22 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 May 31st is up a slight 49% over the previous 12 month period.
Sold properties in May where down 45.5% over last May with 6 sold single family properties. This brings the current total of sold properties for the 12 month period to 72. A 6.5% 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 17.3 months. A 40.7% increase from 2013. This still denotes an strong Buyers Market, and is a significant increase from 12.3 months last year.
Average Days on Market in May are up 581.5% to 6 months. Days on Market for the running 12 month period is up 2.2%. Days on Market only reflects the properties that have sold and not an average of the total inventory that is currently available.
Due to the low number of sales the month to month days on market is not very reliable. A sold property that has been on the market for several years can be misleading. The running 12 month average is much more reliable and that is down 6.5^ to 72 days.
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 May were up 12.4% over May 2013. The 12 month Median Sale Price is down by 2.5%%. It will be interesting to see if, in fact, Median Sale prices of Homes for Sale Somers Point, NJ will be able to stabilize soon.
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 are stabile in the 4% to 4.5% range. 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 - Somers Point NJ - May 2014
By Bill Wagner
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