November 2017 Real Estate Market Update

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Here’s your update on the New Jersey Real Estate Market for November 2017.

Every year at this time, many homeowners decide to wait until after the holidays to put their home on the market. Others who already have their home on the market decide to take it off the market until after the holidays. 
 
Let’s explore the numbers in Ocean & Monmouth Counties for November 2017 and see why that’s not the best idea.
 
Prices continue to rise, which is great news for potential sellers.  The Median list price for a home in Monmouth County in November of 2016 was 454,000.  Here we are a year later and the median price is now up to $ 490k.  That means prices are continuing to rise.  The same is true in Ocean County, but list prices are only up 4% while sales prices are up 10%.  That means homes in Ocean County are selling closer to list price then in Monmouth.  The reason for that is the absorption rate which we will cover later in the show.
 
While prices are going up the average date on market is going down.  Date on market is the number of days a home is on the market.  It’s down 15% in Monmouth County.  This time last year, 68 was the number and it’s now down to  58 for November.
It’s taking on average 75 days to sell in Ocean County, which is a 1% drop. 
 
Back to the Absorption rate.  That tells us what type of market it is.  Remember, the absorption rate is calculated by dividing the number of sales in a given month by the number of available homes for sale. 
 
In Monmouth County the absorption rate for November of 2016 was 5.88 and it’s now down to 4.79.  That means there is only a 5 month supply of homes on the market.  Inventory is low and it is still a seller’s market. It’s actually worse in Ocean County where the absorption rate is down to 3.9 from 5.27 which is a 26% drop.  The absorption rate for Ocean County is the lowest it has been in over a year.  That’s why the average sales price there is up 10%.
 
Finally, let’s take a look at some stats.  Starting in Monmouth County.  We are comparing numbers from November 2016 to November 2017.  This past month 688 homes were sold which is slightly lower than last year.  We have 751 pending listings which is up almost 11% from 2016.  There are currently 3182 active listings which is down 17% from 2016.  Again, there is a lack of inventory which contributes to the seller’s market and the higher prices.  And we only had 1 new listings in November 2017 then we had this time last year.
 
In Ocean County, sold homes went down 16% from 2016.  However, there are 874 pending listings ready for closing and the number of active listings went down 10% from 5,044 to 4,532.  And we only had 4 new listings this past November then this time last year.  The great news for sellers in Ocean County is the average sales price which is up 10%.
 
This is all great news for potential sellers.  If you are thinking of selling and want to wait until after the holidays, I would encourage you to pull the trigger now.  As you can see there is limited inventory now and many people do wait until after the holidays.  If you wait too you will just be competing with more homes.  And did you know that December 26th, the day after Christmas, is the highest trafficked day for Zillow.com.  Most people are off from work and as it gets close to the new year, people are planning their goals and many are serious buyers looking to buy a home.  Will they see yours if you wait?
 
If you are thinking of selling, now is a great time.  With low inventory and higher prices, let’s get your home sold. 
 
For the latest in New Jersey Real Estate subscribe to my channel and visit my website at www.getrealnj.com.  I will be back next year, which is next month for the December update on the New Jersey real estate market.  My name is Michael Falgares from the Get Real Group.  Thanks for watching.