Far Hills NJ Real Estate Market Update SEPTEMBER 2014

Far Hills NJ Real Estate Market Update SEPTEMBER 2014

by Bob Zorechak - GRI, ABR, e-PRO

The numbers for Far Hills are up in 3 out of 4 categories for SEPTEMBER 2014:

• The rolling 12 month sales volume has increased modestly by one (1) unit or (8%) - Last year: September 2012 thru September 2013  (13) homes sold as compared to the current period: September 2013 thru September 2014 with (14) homes sold.

• The September year-to-date numbers are down moderately by three (3) units or (27%) when compared last year's total of eleven (11) homes sold to the current period with eight (8) homes sold.

• The monthly volume for the number of sales occurring last September (0) homes sold, as compared to this September increased by three (3) units or (100%) with a total of (3) homes sold this September.

• The volume of Pending Sales (Under Contract) as of the last day of September 2014 is running higher by one (1) unit as compared to last year at this same time which was at three (3) units vs. four (4) units 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 September is at 11.1 months, which is down by (15%) when compared to last year's inventory at 13.0 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!

September was a very good month for the local market in Far Hills. The rolling 12 month YTD sales volume has caught up with last year at this same time. In fact, it is 8% above where we were in 2013.  In addition, the YTD sales volume through September was at a 54% deficit in August and is now down to a 27% deficit, which is a significant improvement. The monthly volume was also strong at three units sold.  Perhaps the biggest surprise was the 15% reduction in available inventory (11.1 months of inventory) which is down from 14.1 months worth of inventory from just last month.  Lastly, there is a healthy backlog of  homes Pending or Under Contract, up by one unit from last year at this time for a total of four homes, which bodes well for at least the short term.

While there has been an increase of newer 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 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.