Middlesex County NJ Market Commentary for August 2009, New Jersey -Part II (final part)

Middlesex County NJ Market Commentary for August 2009, New Jersey -Part II (final part)

...Days of Inventory (DOI) has increased over 11% versus July mostly due to the decrease in sold homes. At 226 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 increased versus last month but have decreased versus last year (-10.81% and -12.81% respectively).

SP/AP ratio is staying at 95%. In average, sellers are accepting offers at 95% of their last asking price. Please note that I mentioned "last asking price" and not "original asking price".
Another real estate statistic is Days on Market or DOM which has decreased down to 73 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.

That's the end of our local Middlesex County NJ Market Commentary based on Middlesex County real estate statistics. As always, contact me if any questions.

Catherine Chaudemanche, Middlesex County NJ Market Commentary.Realtor AssociateMetuchen Keller Williams Elite Realty / Middlesex County NJ