Montgomery Township, comprising the postal codes of Belle Mead, Skillman and part of Princeton, is a very volatile real estate market.  Since it is rather small, with fewer than 300 sales per year, even a slight increase or decrease in units can have an apparently large impact.  In August, for example, the absorption rate jumped from 4.1 months to 7.4 months, and the supply/demand ratio dropped from 72% in July to 55% in August.  If we look at this year through August, we see an average supply/demand ratio of 52% and an average absorption rate of 7.8 months, both numbers better than Somerset County as a whole.

Prices are another story.  The average sale price in 2007 was $618,180, the median $557,500.  This year the average sale price is $586,519, off about 5% from last year, and the median is $525,000, off nearly 6% over last year.  This is the third straight year of price declines.  The Montgomery market may still be trying to find a bottom, but when it does, it won't last long.

If you're thinking about buying or selling in Montgomery Township, call someone who knows the market.