Tewksbury NJ Real Estate Market Update JULY 2014
by Bob Zorechak - GRI, ABR, e-PRO
The numbers for Tewksbury in JULY of 2014 are all down considerably from last year at this time with the small exception of homes Pending or Under Contract:
The rolling 12 month sales volume is down moderately by 9% or 7 units - July 2012 thru July 2013 (80 homes sold) as compared to July 2013 thru July 2014 with (73 homes sold).
The July year-to-date numbers are down significantly by 31% or sixteen (16) units when you compare the current period (36 homes sold) to last year's year-to-date total (52 homes sold). This is the lowest level for this category in at least the past five years.
The monthly volume for the number of sales occurring this July was four (4) units as compared to fourteen (14) units for last July. This represents a drastic decrease of 71% or ten (10) units from the previous year. This is the lowest level for this category in at least the past five years.
The volume of Pending Sales (Under Contract) as of the last day of June 2014 is running slightly higher at nine (9) units as compared to last year at this same time at eight (8) units, which is up by one (1) unit or (12%). This modest increase indicates that the Tewksbury market will continue to remain flat, or perhaps drop off a bit more, at least for the near term.
The supply of available inventory (the time it would take to sell all of the homes currently on the market) as of the end of July is at 16.1 months, which is up substantially (25%) when compared to last year's inventory at 12.0 months. Basically this indicates that the Tewksbury market has a lot more inventory for Buyers to choose from and is even less "balanced" now than in prior years. In fact, you would have to go back to 2011 in order to see this high level of inventory on the market. The result of this condition will no doubt keep downward pressure on the prices of homes in Tewksbury at least for the near term.
Note: A "balanced" market is considered to have a 6 month supply. Anything below that amount would be considered a "low" inventory and thus less than balanced. This market condition typically favors Sellers. Anything above a 6 month supply would result in a "high" inventory of homes on the market and typically favors Buyers.
Read below to find out the very latest information on your local Tewksbury NJ Real Estate market!
The Tewksbury market appears to have hit a snag as the Year-to-Date sales volume continues to fall below last year's unusually high sales totals. In addition, inventory is up significantly from this same time last year (25%) with virtually no help in sight from homes that are Pending or Under Contract. This will keep downward pressure on pricing until the pace of sales start to gain momentum once again. On a brighter note, four of the nine homes currently Pending or Under Contract are priced from at least $1,250,000 to $2,250,000, which represents a significant uptick in the sale of higher-end homes which has been dormant for the past several years. Hopefully, this is a very good sign for this price point in the Tewksbury market and a sign of things to come.
Another point worth mentioning regarding inventory are those sellers pricing their homes as if we are back in the boom days of the early 2000's, which is certainly not the case. This tactic only serves to slow the market down and clutter it up with overpriced homes that will take a long time to sell. Unfortunately, the agents who take these listings are more to blame than the their seller clients, as they do this for a living and should know better. As a result of all of this excess inventory, the buyers are definitely in control and will stay that way until things start moving again. With that said however, it is not an uncommon occurrence for homes to sell for close to or even above the List Price, sometimes with multiple bids, when seller's price their homes correctly from the very beginning. By pricing too high in the beginning only means less money for the seller in the end.
Look below to see the individual homes that sold in Tewksbury NJ for the month of JULY in 2014. Also shown below is a bar graph illustrating the amount of homes that have SOLD Year-to-Date through JULY over the past 5 years, followed by another graph showing a year to year comparison for homes SOLD in in the month of JULY over the same 5 year period.