The numbers are out for the second quarter of 2007. The information below is provided by myself and my wife, Linda, for all of our customers and clients. Our marketing group provides details pertaining to the composite figures below.
Composite market figures for Gloucester County in the 2nd Qtr 2007:
Average # Of Offerings/Monthly - 678.7 (2nd Qtr 2006 = 668.7)
Average # Of Sales/Monthly - 293.3 (2nd Qtr 2006 = 343.3)
The average number of homes, per month, being offerred for sale has increased from the same time last year. Additionally, the average number of sales, per month, has decrease from the same time as last year. The impact of this shows in the number of homes that are going unsold, as shown below and represented by the Projected Absorption Rate. The Absorption Rate denotes how long it will take (in months) to deplete the current inventory of homes if no additional listings were added.
Unsold Inventory - 2436 (2nd Qtr 2006 = 1944)
Projected Absorption Rate (in months) - 8 (2nd Qtr 2006 = 6)
Essentially, this shows that the number of homes still on the market that have not sold is at 2436 units, which is an increase of almost 500 units from the same time last year. It would take 8 months, at today's market condition, to deplete the inventory of these homes in Gloucester County.
What does this mean to the home owner? That you may need to re-evaluate what you think your home is really worth. For the 2nd Qtr, the number of homes that are selling at $600,000 or more has decreased significantly from the same time as last year. But how many were actually priced below $600,000 or were withdrawn from the market is not known at this time; but the fact the the number of homes remaining unsold is a good indication of which option was chosen. Pricing a home correctly is a key factor that we do to insure that the homes we market actually sell, and not just sit on the market. The heyday of of few years ago are gone. The fact that a former neighbor's house down the block sold for a specific dollar mount three years ago, is not relevant to your home in today's market.
Now, what do these numbers mean to potential buyers? In a nutshell, sitting back thinking that the prices may be lowered even lower could backfire. The home you saw today may be off the market tomorrow...and not because it sold, but because the owner withdrew it from the market or the listing time on market has run out (expired). You have to rely on your real estate agent to advise you regarding the market price of the home you are looking at. The fact that homes were selling at extemely high prices a few years ago cannot be changed at this time. People are not going to give their homes away or take a loss. Unless they HAVE to sell, they will hold their property until the market catches up with their expectations.
If you're currently a home owner who is planning on selling your home, call us now before you make your next move. We can save you time and frustration.
Terry => 609-417-1086
Linda => 609-417-1084
Central A/C
