The Hillsborough, New Jersey real estate market is clearly improving on a month-to-month basis.  Even though the number of sales is off 2007's pace, average sale prices are up, absorption rates (how long it would take to sell off all active listings)continue to drop, and supply/demand ratios (the ratio of new sales to new listings) are climbing.

The first two quarters of 2008 in Hillsborough, New Jersey, show some interesting trends in the real estate market.  Most obviously, the first quarter, compared to the same period in 2007, saw "sales made" numbers down 27%, and "sales closed" down 16%.  The second quarter saw an improvement in the market, but sales made was still down 12% over the same period in 2007, and sales closed were down 29% (reflecting the leading indicator of sales made in Q1).  Overall, the first six months of 2008 saw a combined 19% decline in sales made and a 24% decline in sales closed.  The average absorption rate in the first two quarters of 2008 is 7.01 months, compared to 2007, when it was 5.63 months.  However, in June of 2008, that rate fell to 5.0 months, the lowest since April of 2007, when it was just 4.7.

When we look at sale prices, the news is much better - if you're a seller.  The average sale price in the two quarters of 2007 in Hillsborough was $368,332.  In the first two quarters of 2008, that rose to $382,679, up nearly 4%.  This does not mean that every property in Hillsborough increased in value by that amount, but rather that higher-priced homes seem to be selling, compared to 2007.  Moreover, the number of active listings on July 1 of this year - 268 - is considerably lower than last year's 309.  Properties are selling and are not necessarily being replaced in the market.

Clearly, my advice to buyers is to move quickly to purchase the declining number of properties available.  If interest rates go up again, purchase power will decline, especially in the face of possible increases in properties prices.