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....