Homes for Sale - Somers Point, NJ - Real Estate Trends May 2015
Single Family
The Somers Point Real Estate Market is showing mixed results for May. May saw a 22.7% increase in new listings coming on the market over May 2014. 27 new single family homes where introduced to the market.
The number of newly listed Somers Point single family homes for sale in the year to date period ending May is up 9.2% over 2014.
Sold properties in May where up 33.3% from last May with 8 sold single family properties. This brings the current total of sold properties for the year to date period to 32. This is a 52.4% increase from the same period in 2014.
Combined, the total number of new listings of Somers Point NJ Homes for Sale and total inventory versus the number of properties being sold has allowed the months supply of inventory to decrease to 17 months. This represents an 11% decrease from last May but still denotes an extremely strong Buyers Market.
Average Days on Market where down 10.9% from last May. Days on Market for the year to date period are 126. 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, there will be a large deflection in the Days on Market. The year to date running period provides a more reliable gauge.
Median Sale Prices for this May were down 17.7% from May 2014. The year to date Median Sale Price is down 16.2% to $155,000.
It should be interesting to watch the Somers Point Market over the next several months.
The Somers Point Real Estate Market for Condos showed no improvement in May. May saw a decrease of 40% in new condo listings coming on the market over May of 2014. 6 new condo listings where introduced to the market. Any reduction or increase in available inventory will affect prices.
The number of new listings of Somers Point NJ Condos for Sale in the year to date period ending May is down 26.1%.
Sold condos in May were down 66.7% with 1 sold condominium property. This brings the current total of sold properties for the year to date period to 5. This is a 44.4% decrease from the 2014 year to date period.
Combined, the total number of new Condo listings for Sale in Somers Point NJ and total inventory versus the number of properties being sold has lowered the months supply of inventory to 16.7 months. A 10.7% decrease from the 2014 period. This still denotes an extremely strong Buyer's Market. A balanced market is a 5 to 7 month supply.
Average Days on Market for May is not relevant because there was only 1 sale. Considering the low number of sales, one or two transactions with quick cash closings can dramatically shift the Days on Market in a given month. Conversely, one or two short sale propeties can increase the number of days on market. The Days on Market for the year to date period is 169, just under 6 months. Days on Market only reflects the properties that have sold and not an average of the total inventory that is currently available.
Median Sale Prices for this May were down 30.8% from May 2014.
The year to date Median Sale Price is down 33.1% to $159,900. 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 1 sold property per month, a very low sale or a very high sale can cause a large deflection in the Median.
Median Sale prices for condos are very unlikely to gain any traction in the Somers Point 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. Mortgage rate are predicted to rise in 2015. 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. Hopefully, recent events will turn the tide in Atlantic County.
Mortgage Rates remain relatively steady and at this writing are in the 4% range.
As can be seen in the above graph, we continue to stay in the same side ways price channel.
Homes for Sale Somers Point, NJ - Real Estate Market Trends May 2015
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