It’s the end of the 3rd quarter, and the real estate market in Shrewsbury continues to be strong. An astounding 78% more single-family homes sold this year than during the same 9 month period last year, and the median sales price is up by 21% (the median is the point at which 50% of the homes sold for more money and 50% sold for less).
If you’ve read my columns in the past you know how I’ve stressed the importance of the Real Estate Absorption Rate. The absorption rate is a calculation of how many months it would take to sell all of the homes that are on the market, assuming that homes continue to sell at the present rate. An absorption rate of greater than 7 months indicates a “buyer’s market”, a rate between 5 and 7 months is considered to be a “normal market”, and a rate less than 5 months is a “seller’s market”. The latest Shrewsbury real estate absorption rate calculates out to 4.6 months, which falls into the “seller’s market” category. It’s the only town that I know of in our area that is a “seller’s market”. Here are the numbers:
|Shrewsbury Home Sales, January - September (9 Months Year To Date)|
|Sales (Demand)||23||41||78% more homes sold.|
|Listings (Supply)||24||15||38% fewer homes on market.|
|Months' Supply (Absorption Rate)||9.6||4.6||Demand vs. Supply is very positive.|
|Average Sale $ (Value)||$449,773||$488,411||9% higher average sales price.|
|Median Sale $ (Value)||$375,000||$455,000||21% higher median sales price.|
If you’ve been thinking of selling your home in Shrewsbury, the numbers above represent good news; if you’re looking to buy a Shrewsbury home you possibly see them as bad news. That’s why when people ask me, “How’s the market?” my answer is always the same: it depends. It depends on whether you’re a buyer, a seller or an investor. It depends on what kind of property you’re looking for. It depends upon in what town(s) and neighborhood(s) you’re looking.
If you’re looking to buy a home in our area, it’s still worth looking at homes in Shrewsbury despite the price increase in the past year. Compare them to similar homes in Little Silver, Fair Haven, Oceanport, etc. and list all of the pros- and cons- of each house you’ve looked at. You’ll quickly be able to spot a house that’s a good value for the money.
Leonard “Len” Dunikoski, SRES
Diane Turton Realtors – Rumson Office
8 West River Road
Rumson, NJ 07760
(732) 239-0739 (cell) (732) 530-6686 (office)