Two sides of the same coin...

By
Real Estate Agent with NextHome Premier
https://activerain.com/droplet/5qfx

The shortage of homes for sale presents the greatest opportunity for sellers and the greatest challenge to buyers. Think of it as two sides of the same coin...

In early September I reported on market conditions in Somerset County, NJ's Bridgewater and Hillsborough. These two towns are very popular for their combination of well regarded schools and variety of housing options across the pricing spectrum.  A comparative look at September and today shows that the market remains a seller's market.  Inventory levels are even lower now which presents an even greater challenge to the buyers that were not successful in 2020. 

Market absorption is a tool that measures the health of a market – with a 5-6 month average sale time considered a normal or balanced market, anything less a seller’s market, anything more a buyer’s market, all by degree.  To explain the calculation and demonstrate the market dynamic, let’s take a look at a few popular communities.

First, to calculate market absorption or time to sell, you divide the total number of properties actively listed by the number that have gone under contract in the last 30 days.  The later gives you a good read on the current rate of sale.  The end result is expressed in months to sell, and essentially means that if nothing else were to be listed, at the current rate of sale it would take the resulting number of months to absorb all active inventory.  If that has your head spinning, don’t fuss, we can talk about it together when next we meet/chat.

In the grid below I summarize the stats in September '20 and as of today.  I added the "coming soon" category for the current results.  Ask me about this tool and how it is helpful to you as seller or buyer.

 

BRIDGEWATER-

September ‘20

BRIDGEWATER

January ‘21

HILLSBOROUGH

September ‘20

HILLSBOROUGH

January ‘21

Active

115

42

69

41

Coming Soon

 

5

 

3

 

A up to $500K

54

19

38

17

A over $500K

61

23

31

24

 

0

 

 

 

UC last 30 days

87

38

64

26

UC up to $500K

49

18

39

16

UC over $500K

38

20

25

10

 

 

 

 

 

Time to sell

1.32 months

1.36 months

1.07 months

1.78 months

...up to $500K

1.10 months

1.05 months

.97 month

1.06 months

...over $500K

1.60 months

1.15 months

1.24 months

2.4 months

Bottom line, if you are considering a sale, the market conditions are in your favor.  On the other side of the coin, if you are in the market to buy a home, buckle up and prepare yourself for the challenge.  In either case, please think of me to assist. My experience and reputation among my peers will work in your favor.  I hope you will allow me to be your "lucky penny" in this hot market!

I stand ready to assist!

 

 

Posted by

Jeanne Feenick

Sales Associate, NextHome Premier

Unwavering Commitment to Service, Unsurpassed Results

NJAR Circle of Excellence 2007 through 2017

NJ Realtors Distinguished Sales Club

Office: 908-325-5000

Direct: 908-337-0943

Email: jefeenick@gmail.com

Search all Garden State MLS Listings for free

Mobile search: Text GO to 8550553-6100

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Topic:
Real Estate General Information
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New Jersey
Tags:
buying home in bridgwater nj
buying home in hillsborough nj
selling home in bridgwater
selling home in hillsborough
nj market stats
jeanne feenick

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Rainmaker
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Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is timely information to share.

Take care, be safe and have a great day.

Jan 21, 2021 11:21 AM #1
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Rainmaker
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Jeanne Feenick

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