The real estate market in Hillsborough took a step back in September, unlike the Somerset County market as a whole.  Part of the problem is the fact that Hillsborough right now has nearly a quarter of its listings in the $750,000+ price range, a range not noted for its strength currently.  Additionally, of those 60 or so listings above three-quarters of a million dollars, the overwhelming majority are new construction, including Toll Brothers developments, a Beazer Homes development, and several smaller builders with big expectations.  As a consequence of this relative glut of new construction (which builders re-submit to the MLS periodically), the absorption rate has risen to 10.2 months, compared to 7.8 months last year, the supply/demand ratio has sunk to 39%, compared to 55% last year.  That includes re-sales as well as new construction.

However, there is good news in the market.  Last year at this time the entry-level (under $300,000) was in bad shape.  There were 88 listings and just 12 pendings at that time.  This year, entry-level homes are selling much better - with 87 active listings, there are 35 pendings - nearly three times the number of October 2008.  That price level and the next one up ($300-500,000) are now very strong.  This activity suggests that the first-time home buyer tax credit plan is working, driving the market for entry-level and first trade-up buyers.

Generally, if the new construction is factored out of the market in Hillsborough, the absorption rate is a couple of months better.  And just to make a point of why to factor it out, builders may put in their entire development - anywhere from a handful to fifteen homes - in essence, competing with themselves, and increasing absorption rates and decreasing supply/demand numbers.

Anyway, the Hillsborough market bears watching over the next couple of months, since there usually is a seasonal retreat, but there may be an improvement over the market of a year ago.

In my previous articles on preparing your house for sale I covered the landscaping and yard of your home, the exterior "envelope", and the mechanical systems.  Now, we come to the hard part.  And it is usually the last thing you do before you put your house on the market, but it can absorb a lot of time and effort.

For all the years you have lived in your house, you have fine-tuned it for your tastes.  The colors you have painted rooms fit your preferences.  The furniture is placed for your comfort.  Your favorite memorabilia are hung or otherwise displayed for easy viewing of your triumphs. 

That's all over now.

You now must, I repeat, MUST, transform your house into one that will appeal to the largest group of possible buyers.  I know, your taste is exquisite in all things decorating, but not everyone appreciates such excellent choices in color, etc.  And color is just the start of the transformation.

In all likelihood, you have too much furniture in at least some of your rooms.  Modern living rooms are the orphans in most homes, and a lot of "special" furniture ends up there (I'm being charitable here).  Great Aunt Agnes' platform rocker from the 1920's may be out of place, unless you're treating the room as a trip back through time, and even then, there should not be so much furniture - of whatever provenance or vintage - that prospective purchasers can't enter the room and move around comfortably.  That is equally so if you have a formal dining room.  A good rule of thumb is that a person should be able to circle the table and chairs without feeling crowded.

Occasionally, I express a rule of thumb that about 1/3 of all existing furniture should be removed from every room.  Your situation may be different, but you get the idea - de-clutter to the max.

Kitchens and baths are difficult to prepare for sale because they are used intensively every day, so there are potions and lotions (in bathrooms) and utensils and pots (in kitchens) that should be put away for showings.  In the case of bathrooms, buy a small plastic bin that will accommodate all bottled and tubed goods, and put them all in it.  That way, when the alarm goes out that a showing is imminent, the bin can be scooped up and squirreled away under a sink.  A similar plan should be in place for the kitchen.

Finally, box for moving as soon as possible all collections, from Matchbox cars to stuffed ducks, to family photos (yes, family photos should be boxed up).  The reason?  We don't want people concentrating on things that have nothing to do with the house.  A VERY SMALL number of such things can be left in place in order to give a human look to the house, otherwise it can seem sterile.  But by very small I mean 19 out of 20 pieces should be packed away.

I'm wearing you out, right?  This is only part of what you will eventually need to do.  The rest I can describe to you in person when the time comes to move, and you will call me, won't you?

Recent messages on the mythical national real estate market have been mixed, especially since some of that "recent" data pertains to July (which was great) and August (not so great, depending on the source, etc.).  All real estate is local, so in that spirit I bring you the news (good) of the real estate market in Somerset County, New Jersey.

What a difference a year makes!  In September of last year the market was starting to collapse.  This September the market is clearly rebounding.  What's the evidence?

Although there were fewer sales made this September than in August (perhaps more seasonal than anything else), there were 23% more sales made this September than in September of 2008.  In addition, 5% fewer listings were taken this year in September compared to last.  As a result the supply/demand ratio is 57%, compared to last year's 44%.

Although the absorption rate climbed from August's 6.8 months to 7.6, in September of last year the absorption rate was 10.1 months.  That's huge.  As far as closed sales are concerned, there were 289 closed this September,  256 in September of 2008, or 13% more closed sales this September.

If inventories continue to tighten and sales continue to improve, prices could be affected.  Stay tuned....