Homeowners and home buyers in Scotch Plains are smart to learn about the real estate market to help make an informed decision about when to buy and sell a home in Scotch Plains .
Here’s what’s been happening lately.
Inventory:
- 24 homes were sold in Scotch Plains in September - compared to the 12 month average of 27.9 homes per month.
- Inventory is 161 currently listed homes compared to a 12 month average of 148 homes.
Click here to view currently listed homes in Scotch Plains.
- As inventory increases, demand for homes usually decreases. This can help to lower prices and/or increase how long it takes to sell a home.
Realtors use an analysis called Months of Inventory to evaluate the real estate market. The Months of Inventory is equal to how long it would take to sell the existing inventory if no new houses were put on the market. When the Months of Inventory is below four months, realtors call it a seller's market because the supply is relatively low so sellers have a stronger position in negotiations between a buyer and a seller. When the Months of Inventory is above seven months, realtors call it a buyer's market because the supply is relatively high and buyers have a stronger position in negotiations. Months of Inventory between four and seven is considered a normal market with a good balance of buyers and sellers.
In Scotch Plains, there are currently 6.71 months of inventory in a normal market. There are enough homes listed for sale to satisfy the current buyers in Scotch Plains.
Prices:
- The average sale price in Scotch Plains in September was $495,000- compared to the the 12 month average sale price of $552,840. After a brisk few months this summer, prices are dropping.
- The average list price in Scotch Plains in September was $357,644 - home sellers who want to compete in the fall real estate market in Scotch Plains are going to have to rethink their pricing strategy.
- Scotch Plains home prices vary seasonally and the trend line indicates steady growth over the past 7 years with every indication that prices will continue to rise.
Many forecasters are predicting a turn around in the real estate market and are expecting a busy winter. Factors such as existing and pending home sales and buyer traffic indicate that we may be headed for a rebound.
Days on Market:
- In September, the average sold home in Scotch Plains was on the market for 53 days - compared to 43 days in August and compared to 50 days in September of 2018.
- The speed of a home sale is dependent on home condition, pricing, and marketing. Homes typically sell slower in the winter than the rest of the year.
To learn what this means for buyers and sellers, please click here.
To read more about the real estate market in Scotch Plains, please read our earlier market reports here. For more information on how Team Zuhl can help you, please call us at 908-917-4189.
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