Tewksbury NJ Real Estate Market Update AUGUST 2014
by Bob Zorechak - GRI, ABR, e-PRO
The numbers for Tewksbury in AUGUST of 2014 are mostly down from last year at this time with the exception of the monthly volume of Closed Sales, which is the highest it's been in at least the past five years:
The rolling 12 month sales volume is down slightly by 4% or 3 units - August 2012 thru August 2013 (79 homes sold) as compared to August 2013 thru August 2014 with (76 homes sold).
The August year-to-date numbers are down significantly by 20% or twelve (12) units when you compare the current period (48 homes sold) to last year's year-to-date total (60 homes sold).
The monthly volume for the number of sales occurring this August was twelve (12) units as compared to eight (8) units for last August. This represents a drastic increase of 50% or four (4) units from the previous year. This is the highest level for this category in at least the past five years.
The volume of Pending Sales (Under Contract) as of the last day of August 2014 is running lower at seven (7) units as compared to last year at this same time at ten (10) units, which is down by three (3) units or (30%). This modest decrease 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 August is at 15.7 months, which is up substantially (48%) when compared to last year's inventory at 10.6 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.
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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 (48%) 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, five of the twelve homes that sold in August were over $1M. In fact, one of the five was over $2M, indicating a substantial amount of movement in the higher end of the Tewksbury market after a very long dry spell. 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 AUGUST in 2014. Also shown below is a bar graph illustrating the amount of homes that have SOLD Year-to-Date through AUGUST over the past 5 years, followed by another graph showing a year to year comparison for homes SOLD in in the month of AUGUST over the same 5 year period.
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