Homes for Sale Galloway Township NJ Market Trends September 2014
Single Family
The Galloway Township Real Estate Market saw a dramatic change in September. September saw a 102.8% increase in the number of new listings coming on the market compared to September of 2013. 73 new single family homes where introduced to the market.
The number of Galloway Township single family homes for sale in the year to date period ending September is up 27.7% over the previous year to date period.
Sold properties in September where up 53.3% with 23 sold single family properties. This brings the current total of sold properties for the year to date period to 153. A 17.3% decrease over the previous year to date period.
Combined, the total number of newly listed Galloway Township NJ Homes for Sale and total inventory, versus the number of properties being sold, has increased the months supply of inventory to 17.8 months. A 42.4% increase from 2013. This still denotes an extremely strong Buyers Market.
Average Days on Market in September was down 24.1% to 88 days. Days on Market only reflects the properties that have sold and not an average of the total inventory that is currently available. With a low number of sold properties, a very quick sale, or an incorrectly reported sale, can cause a large deflection in the Days on Market. The year to date running period, which provides a more reliable gauge, Days on Market have increased 1.9% to 105 days.
There continues to be a significant percentage of Short Sale Homes for Sale in Galloway Township, NJ. They are however, closing considerably faster than they were a year ago. Short Sales presently represent 15.5 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 6 months average with some closing as fast as 5 to 6 weeks.
Median Sale Prices for this September were up by 5.8% over September 2013. Year to date the median sale price has declined 3.3% TO $203,000. It will be interesting to see if, in fact, Median Sale prices of Homes for Sale in the Galloway Township Market can stabilize.
55+ Adult Community Homes
The number of newly listed Galloway Township Adult Community homes for sale in September were up 55.6% over September 2013. 14 new listings where introduced to the market in September. Year to date the number of new listings is down 10.3%.
Sold properties in August where even with last September with only 4 sold adult community homes. This brings the current total of sold properties year to date to 29. A 37% decrease from the prior year to date period.
Combined, the total number of newly listed Galloway Township NJ Adult Community Homes for Sale and total inventory versus the number of properties being sold has pushed the months supply of inventory to 10.7 months. A 32.1% increase from 2013. This denotes a Buyer's Market, and it is an increase from 8.1 months last year.
Days on Market for September was 158 representing an increase of 243%% from last September. Average Days on Market year to date is up 35.1% to 127 days. Days on Market only reflects the properties that have sold and not an average of the total inventory that is currently available. With a low number of sold properties, a very quick sale, or an incorrectly reported sale, can cause a large deflection in the Days on Market in a single month.
Median Sale Prices for this September were down 2.6% over last September to $203,000. Because of the very low number of adult community homes being sold each month the Median Sale Prices tend to be unreliable on a month to month comparison. With an average of just over 3 sold properties per month, a very low sale or a very high sale can cause a large deflection in the Median. For the year to date period, which provides a more reliable gauge, Median Sale Prices have decreased 12.3%.
It will be interesting to see if, in fact, Median Sale prices of Homes for Sale in the Galloway Township 55 + Adult Community Market will able to gain any traction.
Condos
The Galloway Township Condominium Market is down in the number of condos sold this September. September saw a 150% increase in new listings coming on the market over September 2013. 20 new condo where introduced to the market. Which is 12 more listings than in September of 2013.
The number of new listings of Galloway Township Condos for Sale year to date is up 20.7% over the previous year to date period.
Sold properties in September were down 16.7% from last September with 5 sold condominium properties. This brings the current total of sold properties year to date to 55. This represents a 22.5% decrease from last year to date.
Combined, the total number of new Condo listings for Sale in Galloway Township, NJ and total inventory versus the number of properties being sold has allowed the months supply of inventory to increase by 24.1% to 14.4 months of supply. This denotes a very strong Buyer's Market and is significantly worse than 11.6 months last year.
Average Days on Market is down 81.5% to 37 days. This would suggest that most of the sales were cash. Year to date Days on Market is at 98. Roughly 3 1/2 months. The Days on Market only reflects the properties that have sold and not an average of the total inventory that is currently available.
A large percentage of listings are Short Sale Condos for Sale in Galloway Township, NJ. Short Sales Condos currently represent 37.7% of the market listings. A year ago many were taking 6 to 9 months to close. This year, if negotiated properly they are only taking 3 to 6 months average with some closing as fast as 5 to 6 weeks.
Median Sale Prices for this September were 26.9% from September 2013. Because of the very low number of condos being sold each month the Median Sale Prices tend to be unreliable on a month to month comparison. With an average of 6 sold properties per month, a very low sale or a very high sale can cause a large deflection in the Median. Year to date, which provides a more reliable gauge, Median Sale Prices have decreased 1.3% to $69,000.
Do to the economic environment many condo associations are experiencing delinquency rates in the collection of monthly condominium association fees. This makes the units ineligble for financing with less than 20% down payment. Substantially reducing the pool of available buyers. This factor will continue to keep downward price pressure on the Condos for Sale in Galloway Township. A large percentage of purchases have been made by investors.
Median Sale prices overall for condos are very unlikely to gain any traction in the Galloway Township Market.
With supply remaining high, and growing, demand light, and the possibility of increasing interest rates, the Median Sale prices will have no option but to go down. When interest rates increase, buyers qualify for lower mortgages.
Overall
The closing of 4 casinos, has had a major affect on market prices. Unemployment continues to increase to the highest level 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. Adult community homes are less sensitive to employment numbers because many occupants are retired.
Mortgage Rates are also predicted to gradually climb and at this writing are 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.
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Homes for Sale Galloway Township NJ Market Trends September 2014
By Bill Wagner
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