January was a good month for the Middletown real estate market. If you’re a Middletown home owner, you’ll be glad to know that the median sales price of a single-family home was up 14% from a year ago, even though 21% fewer homes sold. 9% fewer homes were listed for sale; fewer listings tend to increase sales prices.
If you’ve been following my posts, you know about the importance of the real estate absorption rate, which takes into account both sales (i.e., demand) and listings (i.e., supply). The absorption rate is a calculation of how long it would take to sell all of the houses listed for sale, assuming that the rate of sales remains the same as it has been for the past 12 months. An absorption rate of greater than 7 months is considered to be a “buyer’s market”, while 5 – 7 months is considered to be a “normal market” and less than 5 months is considered to be a “seller’s market”. One year ago, Middletown’s absorption rate was 6.8 months and now it’s 5.4 months. We’re still technically in a “normal market”, but we’re heading towards a “seller’s market”- that’s something we haven’t seen for several years.
Here are the 4 key, objective indicators in tabular form:
Middletown Home Sales, Jan 1 - Jan 31
2013 2014 Comment
Sales (Demand) 34 27 21% fewer homes sold.
Listings* (Supply) 305 278 9% fewer homes on market.
Months' Supply* 6.8 5.4 Stronger demand vs. supply.
*based on the past 12 months
Median Sale $328,750 $373,000 14% higher median price.
Average Sale $389,471 $442,532 14% higher average price.
If you’re thinking of selling your Middletown home this year, please let me be one of the REALTORS® you interview to list your home on the market. A decision on “fair market value” for your home should be based on solid data about the current Middletown market, and I’d be happy to review that information with you. I’ll also give you a detailed marketing plan to sell your home as quickly as possible and at a price as high as possible. Please call, text or email me and I’ll get right back to you.
Leonard “Len” Dunikoski, GRI
Diane Turton Realtors – Rumson Office
8 West River Road
Rumson, NJ 07760
(732) 239-0739 (cell) (732) 530-6686 (office)