Suddenly, the real estate market in Montgomery Township, NJ, seems to have caught fire.  June seems to have been a breakout month, with sales made outnumbering listings taken, for a supply/demand ratio of 113%, the highest in several years. At the same time, with inventories about 20% less than 2007, the absorption rate dropped to 4.2 months, into the seller's market category, the best since February 2006.  Average monthly inventory was 128 homes, compared to 149 in 2007.

The number of sales written in June was identical to the number in June 2007, and the number of sales closed was also identical for June in those two years.  In fact, the number of sales written was 40% higher than June of 2006. Still, that number was off 16% over the first two quarters of 2007.

The average sale price in the first two quarters of this year is $591,177, 3.3% lower than the $611,647 for the same period in 2007. It should not come as surprising news that as sellers adjust their prices and/or expectations to reality, homes sell. Homes ARE selling, and the Montgomery market is recovering. 

Since it is a relatively small market with many higher end ($800,000+) homes, with fewer than 300 sales per year, Montgomery can see some wild variations from cold to hot and vice versa with just a few sales difference.