Far Hills NJ Real Estate Market Update AUGUST 2014

Far Hills NJ Real Estate Market Update AUGUST 2014

by Bob Zorechak - GRI, ABR, e-PRO

The numbers for Far Hills are down in 3 out of 4 categories for AUGUST 2014:

• The rolling 12 month sales volume has decreased modestly by seven (7) units or (39%) - Last year: August 2012 thru August 2013  (18) homes sold as compared to the current period: August 2013 thru August 2014 with (11) homes sold.

• The August year-to-date numbers are down substantially by six (6) units or (54%) when compared last year's total of eleven (11) homes sold to the current period with five (5) homes sold.

• The monthly volume for the number of sales occurring last August (3) homes sold, as compared to this August decreased by one (1) unit or (100%) with a total of (0) homes sold this August.

• The volume of Pending Sales (Under Contract) as of the last day of August 2014 is running higher by one (1) unit as compared to last year at this same time which was at zero (0) units vs. one (1) unit for this year.

• 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 14.1 months, which is up by (41%) when compared to last year's inventory at 10.0 months. Basically this indicates that the Far Hills market has an excess of inventory for Buyers to choose from. The result of this condition will no doubt keep prices down (at least for the near term) as compared to other surrounding towns where there is less inventory available.

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 Far Hills NJ Real Estate market!

While all real estate is local, there are many positive signs being seen all across the Northeast and in other major regional markets across the country. The next several months will be critical in determining if the recent upswing has any sustained staying power.  Inventory is up, which gives buyers the edge in terms of selection and lower prices.  YTD sales volume is only half as much as it was last year at this time. In addition, there is only one (1) home that is Pending or Under Contract, which does not bode well for the short term.

While there has been an increase of new inventory entering the market, many of these sellers have priced their homes significantly above market value. They seem to be thinking that the "good old days" are back, which could not be further from the truth. Buyers are still in control of this market.

Interest rates remain at or near historic lows and prices are still relatively low.  Combine these two factors with a relatively high inventory of homes to choose from and you have the perfect conditions for a robust and steady housing recovery. The general state of the economy along with a high rate of foreclosures and distressed properties are expected to keep prices low for several more years as older inventory eventually gets cleared out.

Look below to see the individual homes that sold in Far Hills 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.