If you're looking for a major shift in the real estate market in Somerset County, New Jersey, you'll be disappointed.  The market in August continued to plod along in the same direction - improvement - as has been the case since January.

The number of homes available for purchase dropped off a bit, to 2453 from 2544 on August 1, but that compares with 2445 on September 1 of last year.  The supply/demand ratio dropped a couple of points, to 50%, meaning that as 100 new listings were added to inventory, 50 sales were made.  Back in January that number was at a dismal 29%.  The absorption rate saw an increase to 9.4, the number of months needed to sell off the current inventory at current rates of sale.  The lowest this year was 7.2, back in June, but last month was 7.8 months.

Prices remain relatively stable as well.  The median sale price in 2007 was $385,000.  The median for all closings through August of this year is $375,000.  The average sale price in 2007 was $498,302, this year so far, $473,845, about 5% less. 

Those buyers expecting a further drop in prices will be disappointed.  The worst of the real estate crisis is over, and recovery in prices and volume of sales is just around the corner.  Someone buying in 2008 can expect to see their courage pay off as once again prices start to rise in Somerset County, especially in several municipalities like Hillsborough, Montgomery and Franklin.

The month of July in Somerset County, New Jersey, saw a slight downturn over June numbers.  The absorption rate increased from 7.2 months to 7.8 months, and the supply/demand ratio dropped very slightly from 57% in June (the best yet this year) to 54% in July.  A year ago the absorption rate was 6.7, about a month shorter than this year, but the supply/demand ratio was the same - 54%.

The market is still recovering from August 2007 when everything hit the fan, but it is recovering.  The closed sales number for July 2008 was 362, and in July 2007 372, or off a little less than 3%.

The number of properties available on August 1 was 2544 this year, 2536 last, and 2599 in 2006.  Not much difference, but the number of sales made this year in July was 327, last year 380, and 334 in 2006.  These are not closed sales, but ones that were written in those months. 

The market in Somerset County overall favors buyers, but there are many communities in which the balance has tipped in favor of sellers.  Watch this space....

Dismal numbers released yesterday by the National Association of Realtors® should make residents of Somerset County, New Jersey feel a little better about their situation.  At a time when sales declined nationally in June over the preceding month, Somerset County saw the steady improvement I pointed out here a short time ago.  The ratio of buyers to sellers continues to improve, as does the absorption rate (which had worsened for a month in May).

So far this year the average sale price is off less than 1% over the same period last year, even though sale are off 28% over last year, reflecting in large measure the disappointing 34% decline in the first quarter, and the improving in the second quarter to "just" 22% decline.

The point to my posting is that Somerset County is doing better than the mythical "national market."  Moreover, pay attention to your local market, unless your buying and/or selling somewhere else.  Just as Somerset County market numbers mean nothing in Las Vegas, Las Vegas numbers mean less than that in Somerset County.  It's all about your local market.