Colts Neck Home Prices Up 8%

The median price of a single-family home in Colts Neck increased by 8% in 2013 (from $625,000 in 2012 to $672,500). The median is the price at which 50% of the homes sold for more and 50% sold for less. It’s normally a better indicator than the mathematical average, which can be skewed by a handful of very high (or very low) priced home sales. Interestingly enough, this year the average Colts Neck home price ($831,089) decreased by 4%. When the average is higher than the median, it indicates that more higher-end homes sold.

43% more Colts Neck homes sold in 2013 than in 2012; an increase in sales (i.e., demand) normally predicts higher home prices in the near future. However, we also saw a slight (1%) increase in the number of homes listed for sale (i.e., supply); more listings tend to result in lower home prices or to moderate price increases.

The real estate absorption rate looks at both demand and supply. If you’ve been following my posts you know that a real estate absorption rate of between 5 and 7 months is considered to be a “normal market”, whereas greater than 7 months is a “buyer’s market” and less than 5 months is a “seller’s market”.  Colts Neck started the year with an absorption rate of 11.9 months and ended 2013 with a rate of 8.5 months, so we stayed in a “buyer’s market” during the year. Next door in Marlboro the absorption rate is 4.2 months, which falls into the “seller’s market” range.

The average Colts Neck home sold in about the same time in 2013 as in 2012. If a home is sold on its first listing, we measure the days it was on the market (DOM). However, if the listing expires before the home sells, once the home is re-listed we can measure either the DOM for the new listing or the number of cumulative days on the market (CDOM). The CDOM gives a much better idea of how long the home really took to sell. For Colts Neck, the average CDOM went from 120 days in 2012 to 129 days in 2013.

If you’re a Colts Neck home owner, there are lots of things to be happy about: sales are up, prices are up, and the absorption rate is much shorter. If you're thinking of selling your home, please let me be one of the REALTORS® you interview to list your home on the market.

If you’re thinking of buying a home in Colts Neck, you’ll have to plan to spend more than you would have a year ago. Either way, a decision on what is "fair market value" for a house should be based on solid data about the current market.

Here are all the statistics:

 - 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

http://www.rumsonfairhavenhome.com

@ListWithLen