At the end of 7 months (2013), the Manalapan real estate market is showing some real strength.
The 4 key objective indicators we really want to look at are Manalapan’s 2013 7-Month Year-to-Date statistics, which all mainly positive for home sellers (and not such great news for home buyers):
Sales: 149 in 2012, 157 in 2013 (+5%)
Find out what's happening in Manalapanwith free, real-time updates from Patch.
Listings: 167 in 2012, 123 at the end of July 2013 (-26%)
Median Sales Price: $430,000 in 2012, $469,000 in 2013 (+9%)
Find out what's happening in Manalapanwith free, real-time updates from Patch.
Absorption Rate: 7.6 months in 2012, 5.2 months now (stronger Demand vs. Supply)
The combination of increased sales and fewer homes on the market normally predicts higher prices in the near future. The significantly stronger real estate absorption rate also predicts that sales prices will rise. The real estate absorption rate is a calculation of the time it would take to sell all of the homes currently on the market, assuming that homes continue to sell at the same rate as they did in the past 12 months. An absorption rate of more than 7 months is considered a “buyer’s market”, while 5 – 7 months is considered a “normal market” and a rate less than 5 months is considered a “seller’s market”. If you’re thinking of selling a home in Manalapan, the current rate of 5.2 months should really make you smile, because in one year we’ve moved from a “buyer’s market” almost to a “normal market”.
There’s one important thing to note, however- we still haven’t seen the impact that higher mortgage rates may have on the market. Will we see an increase in home buyers trying to lock in the present rates before they rise again, or will rates increase more quickly than expected (and reduce the size of the home mortgages that buyers can afford)?
If you’ve been thinking of buying a home in Matawan, you might want to act sooner rather than later. If you find a listing for a 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.
Whether you’re a first time home buyer or a repeat buyer, I’d be glad to help you find exactly the right home before mortgage rates rise again. Call, text or email me and let me know what you’re looking for.
What other REALTOR® gives you this kind of objective information about the LOCAL real estate market?
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)
