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.
- 21 homes were sold in Scotch Plains in November - compared to the 12 month average of 26.8 homes per month.
- Inventory is 117 currently listed homes compared to a 12 month average of 143 homes and to the 156 homes that were offered for sale at this time last year.
- As inventory decreases, demand for homes usually increases. This can help to raise prices and/or decrease 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 5.57 months of inventory in a normal market. There are enough homes listed for sale to satisfy the current buyers in Scotch Plains.
- The average sale price in Scotch Plains in November was $461,148 - compared to the the 12 month average sale price of $548,744. After a brisk few months this summer, prices are dropping.
- The average list price in Scotch Plains in November was $647,066. While prices will likely rise again in the spring, home sellers who want to sell their Scotch Plains homes this winter are going to have to rethink their pricing strategy.
Days on Market:
- In November, the average sold home in Scotch Plains was on the market for 40 days - compared to 32 days in November of last year and to the 12 month average of 45.6 days. Sales remain brisk.
- 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 as is evident in this six year graph below. The time it takes to sell a home continues to get shorter overall.
Please click here to learn what this means for buyers and sellers.
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.