With the release today by the National Association of Realtors® of their cheerless report on the "national market," showing a decline of 2.7% in sales from July to August, it is important to observe that Hillsborough, NJ bucked that trend.

In August of this year there were 37 sales made, compared to 36 in July of this year, and 36 in August of last year.  This year the market seems to be on the rise, while last year at this time the market was spiraling downward.  From May through August this year we have seen a steady, but small increase in sales made.  Even more important, the absorption rate continues to decline, moving closed to the "balanced market" which is usually regarded as a six-month supply.  It is currently 6.8 months, after a disastrous January that say a 20.6 month supply.  That was ugly.

The median sale price so far this year is $330,000, compared to $345,000 for all of last year, a 4.3% decline overall.  The inventory of unsold properties is within two units of last year at this time.  So, are we seeing a reply of last year?  I'm inclined to say no.  The death spiral of last year was in the opposite direction of what we're seeing right now.

Who can accurately predict the market in Hillsborough?  No one.  However, if you're thinking of buying or selling now, it is best if you have a market-knowledgeable Realtor® on your side.  Any names come to mind? 

A couple of weeks ago I started a series of postings for those homeowners who are getting ready to put their homes on the market.  The first part covered the yard and landscaping.  The second covered the building "envelope," windows, siding and roof.  This part will deal with the systems of the house - heating, plumbing, etc.

The systems of the house are mostly not apparent to most potential buyers.  However, once an offer is accepted, a buyer usually has a professional inspector evaluate the property.  At that time some horrors may come up that could threaten the transaction or involve very costly repairs, so it would be best if you knew about them well in advance.

Do you have pipes that leak (your house, that is)?  Is your heating system making strange noises and/or struggling with cold weather?  How about your air-conditioning?  Does it cool your home?  Does your water heater gurgle and hiccup?  Do electrical switches sputter and spark when you turn them on?  These are all things that an inspector will discover and that a buyer may very well want remediated.

Swimming pools and hot tubs are other systems that will be tested by an inspector.  Get them running in top shape, and get a pool contractor to certify to that effect, just in case you sell your home before the next open the pool.

If you have a private well for your water supply in New Jersey, you have to have an extensive test done on the water when it comes time to sell.  A buyer would want to see the results, and although the State of New Jersey does not necessarily require that you correct all deficiencies in the water, your local health department and a prospective purchaser might want items taken care of - the most likely being lead in amounts greater than the threshold for safety.  That threshold, by the way, was signficantly lowered about three years ago.  Find out your water quality before it becomes an urgent issue.

Septic systems are another issue for some.  In fact, some buyers avoid septic systems altogether and won't buy a house with one.  Nevertheless, an educated buyer will want to have a serious septic system test.  A proper test can cost in excess of $1500.  We're not talking flushing concentrated dye down the toilet and seeing if your yard turns red.  If you have any inkling of a problem with your septic system, address it now, before you put the house on the market.

The sooner you address systems issues, the better off you will be.  If you have problems now, you have plenty of time to get estimates to remedy them.  If you wait until the last minute, you will be at the mercy of any contractor who is available on short notice.

Now, if you're not really into doing systems inspections yourself, reach out to a qualified, licensed home inspector.  There are many good ones out there, and if you'd like, I could recommend several.  For about $500 or so an inspector could provide you with a detailed report, just like an inspector for a buyer would provide.  Your report could be a good negotiating tool should issues come up, but more importantly, you'd have a good idea of the condition of your house.

When you've completed this step you will be ready for the big one - decluttering, staging and the like.  Stay tuned for more.

The real estate market news in Somerset County, New Jersey, continues to improve every month.  There have now been seven straight months of increased sales.   The supply/demand ratio continues to increase (a good thing) as fewer properties came on the market and more properties went under contract.  Even the absorption rate, the dark spot last month, fell to 6.8 months (a good thing).  Last year at this time the rate was starting its ugly climb from 9.4 months.

A lot more sales were made this August than August 2008 (342 vs. 260), slightly fewer listings were taken than August 2008 (511 vs. 516), so the supply/demand ratio climbed to 67%, the highest since December (when the sellers were dropping out of the market as real estate activity fell precipitously).

So far this year, the median sale price for all of Somerset County is $350,000, compared to $375,932 for all of 2008, representing a 7% decline.  Remember, however, that the current market is rising going into the fall, while last year it was starting its plummet about this time.  The inventory of unsold homes is decreasing now, so we could see a recovery in sale price by the end of this year.

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