Recent messages on the mythical national real estate market have been mixed, especially since some of that "recent" data pertains to July (which was great) and August (not so great, depending on the source, etc.).  All real estate is local, so in that spirit I bring you the news (good) of the real estate market in Somerset County, New Jersey.

What a difference a year makes!  In September of last year the market was starting to collapse.  This September the market is clearly rebounding.  What's the evidence?

Although there were fewer sales made this September than in August (perhaps more seasonal than anything else), there were 23% more sales made this September than in September of 2008.  In addition, 5% fewer listings were taken this year in September compared to last.  As a result the supply/demand ratio is 57%, compared to last year's 44%.

Although the absorption rate climbed from August's 6.8 months to 7.6, in September of last year the absorption rate was 10.1 months.  That's huge.  As far as closed sales are concerned, there were 289 closed this September,  256 in September of 2008, or 13% more closed sales this September.

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

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....

Real estate activity in Somerset County, New Jersey keeps getting better, as all month-to-month market indicators and indexes continue to improve. Although the number of properties available increased very slightly (about .005%) over last month, this is not unexpected this time of year. However, compared to last year, inventory is down nearly 6%. The number of sales made rose again for the fifth month in a row, which also is normal (the rise, not the number of months), and was 5% ahead of last year’s June. Moreover, the supply/demand ratio is also up for the fifth month in a row, now at 58% (compared to 57% last year), continuing over the magic 50% mark, and the absorption rate has declined again, now at 6.5 months. The market is closing in on balance, which occurs around 6 months absorption rate, favoring neither buyers nor seller.