Red Bank real estate has been depressed for some time now, but it looks like we’re finally seeing a recovery. At the end of June, the median price of a single-family Red Bank home was down 6% compared to a year ago. By the end of July it was down only 2%, and at the end of August it was down only 1%. If you’ve been thinking about buying a single-family home in Red Bank, is now a good time to buy?
Let’s look at the 8 month year-to-date statistics for single-family homes in Red Bank, focusing on the 4 key objective real estate indicators (items in bold font are good news for home sellers, but bad news for home buyers; items in underlined italic font are bad news for home sellers, but good news for home buyers):
Sales: 40 in 2012, 49 in 2013 (+23%)
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Listings: 37 in 2012, 39 at the end of August 2013 (+5%)
Median Sales Price: $332,500 in 2012, $330,000 in 2013 (-1%)
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Absorption Rate: 9.7 months in 2012, 5.6 months now (much stronger Demand vs. Supply)
As you can see, the real estate indicators are mixed. The increased number of sales and the decreased real estate absorption rate are good news for home sellers because they predict higher prices in the future. However, an increased number of listings tends to keep prices down, and the median home price is still lower than it was a year ago.
The real estate absorption rate is a calculation of how long it would take to sell ALL the homes that are currently listed, assuming that homes continue to sell at the current rate for the past 12 months. In a “normal market” the absorption rate is between 5 and 7 months, greater than 7 months is considered a “buyer’s market” and less than 5 months is considered a “seller’s market”. Last year at this time, we were in a “buyer’s market” in Red Bank, but now we’ve moved into a “normal market”.
If you’re thinking of selling a home in Red Bank, the year-to-date statistics above are predicting higher prices in the future, and you may want to wait until spring to list your home. I’d be glad to give you a free, no obligation market analysis of what your home should sell for in the current market.
On the other hand, if you’re thinking of buying a single-family home in Red Bank, you may want to move sooner rather than later, because we’re no longer in a “buyer’s market” but the median price is still lower than it was a year ago. Traditionally there's an upswing in the number of home sales between Labor Day and Thanksgiving, and then a relatively quiet real estate market until early spring. If you're thinking of buying a home in Red Bank, look now while there's still a good supply of homes. If you find a home you like, you'd be wise to lock in a mortgage interest rate before rates go up again.
Remember, if you find a listing for a Red Bank home you like, DON’T CALL THE LISTING AGENT. The Listing Agent works for the Seller, and has a fiduciary responsibility to get the highest price. You want to work with a REALTOR® whose undivided loyalty is to YOU, and who will negotiate the LOWEST price.
I'd be glad to be your Buyer’s Agent, help you find exactly what you're looking for in Red Bank, and negotiate the lowest price for you- just call, text or email me.
Note: I wrote this article; these are my personal views and do not necessarily reflect the views of Diane Turton, Realtors.
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)
