The Manahawkin real estate market is stabilizing as more houses are being offered for sale but it’s still a “seller’s market” indicated by an absorption rate below 6 months. As usual, supply and demand will determine future home values in Stafford Twp.
Active listings in Stafford Twp has increased by 14% as the absorption rate is at 5.29 months (The absorption rate is the rate at which available homes are sold in a specific real estate market during a given time period. It is calculated by dividing the average number of sales per month by the total number of available homes). Median sale price has increased by over 3% over this time last year while median days on market has decreased by almost 20%.
Will home values continue to appreciate throughout 2018? The answer is simple: YES! – as long as there are more purchasers in the market than there are available homes for them to buy. This is known as the theory of “supply and demand,” which is defined as:
“The amount of a commodity, product, or service available and the desire of buyers for it, considered as factors regulating its price.”
When demand exceeds supply, prices go up. Every month this year, demand (buyer traffic) has increased as compared to last year and for the first five months of 2018, supply (the number of available listings) had decreased as compared to last year. However, a recent report by the National Association of Realtors (NAR) revealed the first year-over-year increase in supply in three years.
Here are the numbers for supply and demand as compared to last year since the beginning of 2018:
The increase in the June numbers doesn’t mean that prices won’t continue to appreciate. In that same report, Lawrence Yun, NAR’s Chief Economist, explained:
“It’s important to note that despite the modest year-over-year rise in inventory, the current level is far from what’s needed to satisfy demand levels.
Furthermore, it remains to be seen if this modest increase will stick, given the fact that the robust economy is bringing more interested buyers into the market, and new home construction is failing to keep up.”
The reason home prices in Manahawkin are still rising is that there are many purchasers looking to buy but very few homeowners ready to sell. This imbalance is the reason Stafford Twp home prices will remain on the uptick.
Karl Hess & Keller Williams Shore Properties provides expert real estate services to residential buyers and sellers in Stafford Twp and the surrounding communities. Contact us today for more information on Manahawkin Real Estate and for professional assistance navigating this complex home market.
As always, thank you for your time and feel free to get in touch if you have any questions. Karl Hess, Keller Williams Shore Properties - #1 Real Estate Office in Ocean County