Red Bank Home Prices Down 5%

Last week we looked at an article in the Wall Street Journal that said home buyers were feeling a sense of “urgency” to buy now before prices go up. For Red Bank, that “urgency” is translating into more home sales, but at lower prices. For the 5 month period between January 1st and May 31st, there were 47% more home sales, but it took longer to sell them and the median selling price of a Red Bank single-family home decreased by 5% (the median is the price at which 50% of the homes sold for more and 50% sold for less).

The only good news for Red Bank home sellers is that 16% fewer homes are on the market, and the absorption rate (the number of months it would take to sell all the homes on the market if sales continued at the current rate) decreased from 13.7 months to 5.8 months. A decreasing absorption rate predicts higher prices in the future.

The good news for Red Bank home buyers: the average price went down 21%, and the average listing price is down 23%. This good news may not last long, however, since fewer homes on the market and a lower absorption rate both predict higher future prices.

Here are all of the key numbers (source: Monmouth-Ocean MLS):

                                   Red Bank Home Sales, January - May




    2012     2013       Comment



Sales (Demand)      19     28 47% more homes sold.



Listings (Supply)      45     38 16% fewer homes on market.



Months' Supply (Absorption Rate)     13.7     5.8 Much stronger demand vs. supply.
Note: this is based on the past 12 months Average Sale $ (Value) $413,763 $328,414 21% lower average sales price.

 
Median Sale $ (Value) $330,000 $314,250 5% lower median sales price.



Average Listing $ $447,642 $343,738 23% lower average listing price.



Avg Sale/List %     92%     96% Higher Sales/Listing %.



Avg Cumulative Days On Market     104     170 Longer average CDOM

If you have any questions or if you’d like to talk to me about Red Bank real estate please text me or give me a call.

Len

Leonard “Len” Dunikoski, GRI

REALTOR® Associate

Diane Turton Realtors – Rumson Office

8 West River Road

Rumson, NJ 07760

(732) 239-0739  (cell)    (732) 530-6686 (office)

ldunikoski@dianeturton.com