Middlesex County NJ Market Commentary - September 2009 Part 2

Middlesex County NJ Market Commentary - September 2009 Part 2
This Middlesex County NJ market commentary for the month of September is based on Middlesex County NJ real estate statistics.

Middlesex County NJ Market Commentary - September 2009 Part 1
Days of Inventory (DOI) has decreased over 3% versus August mostly due to the decrease in new homes listed. At 219 days, it means it would take about 7 months to sell all existing inventory at the same absorption rate. A market with over 6 months supply would usually qualify as a buyer's market. A market with less than 6 months of supply would usually qualify as a seller's market. This decrease is very important to note as DOI is an important variable in the monitoring of local real estate markets and our real estate barometer.

Both median and average sold prices have decreased versus last month and have decreased versus last year (-7.14% and -13.24% respectively) confirming the yearly downtrend.
SP/AP ratio is decreasing one point at 94%. In average, sellers are accepting offers at 94% of their last asking price. Please note that I mentioned "last asking price" and not "original asking price" which is very different. As a general rule, houses that sell are houses that are very close to their current market value as calculated through a Comparative Market Analysis.

Another real estate statistic is Days on Market or DOM which has increased almost 7% up to 78 days. Meaning that it takes less than 3 months in average to go under contract. A word of caution with this indicator as it is not a cumulative DOM. Meaning the clock re-starts with any new contract for the same home. This is a good example of the better value of looking at those statistics, which is more in the trend analysis than in a specific number at a specific given time

Catherine "Cathy" ChaudemancheKeller Williams Elite Realty / Middlesex County market center.