If you’ve been following my posts you know the importance of the “real estate absorption rate”. That’s a calculation of how long it would take to sell all of the homes currently listed for sale, assuming that homes continue to sell at the same rate as they have during the past year. In a normal real estate market, the real estate absorption rate is between 5 and 7 months; when the rate is more than 7 months we have a “buyer’s market” and when the rate is less than 5 months we have a “seller’s market”.
In July the Shrewsbury real estate absorption rate fell below 5 months for the first time in many years, and it has stayed below 5 months since then, so we’ve met the definition of a “seller’s market”. After 5 years of a very weak real estate market, you might think this news is too good to be true, and that this REALTOR®is just wearing a pair of rose-colored glasses. Look at all 4 of the key real estate indicators and you’ll change your mind:
|Shrewsbury Home Sales, January - November (11 Months Year To Date)|
|Sales (Demand)||30||43||43% more homes sold.|
|Listings (Supply)||24||11||54% fewer homes on market.|
|Months' Supply (Absorption Rate)||7.7||4.5||At less than 5 months since July.|
|Average Sale $ (Value)||$453,258||$488,950||8% higher average sales price.|
|Median Sale $ (Value)||$380,450||$455,000||20% higher median sales price.|
Demand: 43% more Shrewsbury homes sold in 2012 than in 2011; supply: 54% fewer Shrewsbury homes are listed for sale than there were a year ago; absorption rate: below 5 months for the 5th month in a row; and value: the median 2012 selling price of Shrewsbury homes is 20% higher than the median price was a year ago.
If you’ve been thinking about selling your Shrewsbury home these are positive indicators indeed. If you’d like some free ideas about how to best prepare your home for listing in the spring, text me, email me or call me and I’d be glad to help.
Leonard “Len” Dunikoski, GRI
Diane Turton Realtors – Rumson Office
8 West River Road
Rumson, NJ 07760
(732) 239-0739 (cell) (732) 530-6686 (office)