Tewksbury NJ Real Estate Market Update SEPTEMBER 2014
by Bob Zorechak - GRI, ABR, e-PRO
The numbers for Tewksbury in SEPTEMBER of 2014 have remained steady as compared to last month and also last year at this same time, although inventory is up substantially:
The rolling 12 month sales volume is down slightly by 7% or 6 units - September 2012 thru September 2013 (83 homes sold) as compared to September 2013 thru September 2014 with (77 homes sold).
The September year-to-date numbers are down moderately by 17% or twelve (12) units when you compare the current period (57 homes sold) to last year's year-to-date total (69 homes sold).
The monthly volume for the number of sales occurring this September was nine (9) units, which was the exact same volume as last year. This ties 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 September 2014 is running significantly higher at eleven (11) units as compared to last year at this same time at six (6) units, which is up by five (5) units or (83%). This increase indicates that the Tewksbury market should have a very good October, as there are nine homes scheduled to close by the end of the month.
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 September is at 14.5 months, which is up substantially (38%) when compared to last year's inventory at 10.5 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, although that difference has been falling for the past several months. In addition, inventory is up significantly from this same time last year (38%), which is (10%) better than last month and there is some help in sight from the number of homes that are Pending or Under Contract. In summary, it looks as though the market has surged in the past six weeks or so as earlier deficits have been reduced.
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 SEPTEMBER in 2014. Also shown below is a bar graph illustrating the amount of homes that have SOLD Year-to-Date through SEPTEMBER over the past 5 years, followed by another graph showing a year to year comparison for homes SOLD in in the month of SEPTEMBER over the same 5 year period.
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