July was a mixed month for Middletown real estate. Sales were up: 52 homes sold in July last year, and 75 sold this year (+13%). However, the monthly median home price decreased 2% (from $442,500 last July to $415,000 this July).
Those are just the monthly numbers. The 4 key objective indicators we want to look at are Middletown’s 2013 Year-to-Date statistics, which all are positive for home sellers:
Sales: 281 in 2012, 341 in 2013 (+21%)
Find out what's happening in Middletownwith free, real-time updates from Patch.
Listings: 341 in 2012, 329 at the end of July 2013 (-4%)
Median Sales Price: $380,000 in 2012, $385,000 in 2013 (+1%)
Find out what's happening in Middletownwith free, real-time updates from Patch.
Absorption Rate: 8.6 months in 2012, 5.9 months now (stronger Demand vs. Supply)
Increased sales and fewer homes on the market normally predict higher prices in the near future. The significantly stronger real estate absorption rate also predicts that sales prices will rise. If you remember my previous posts, you know that the absorption rate is a calculation of the time it would take to sell all of the homes currently on the market, assuming that homes continue to sell at the same rate as they did in the past 12 months. An absorption rate of 5 – 7 months is considered a “normal market”, and a rate less than 5 months is considered a “seller’s market”. If you’re thinking of buying or selling a home in Middletown, the current rate of 5.9 months tells you that we’re no longer in a “buyer’s market”, and we may be heading towards a “seller’s market” (several surrounding towns already have absorption rates less than 5 months).
The current market offers both buyers and sellers opportunities in Middletown. We still haven’t seen the impact that higher mortgage rates may have on the market. Will we see an increase in home buyers trying to lock in the present rates before they rise again, or will rates increase more quickly than expected (and reduce the size of the home mortgages that buyers can afford)?
If you’ve been thinking of selling your Middletown home but still aren’t sure, I’d be glad to help you by giving you a free (no obligation) analysis of what your home is worth in the present real estate market. Call, text or email me.
Len
Leonard “Len” Dunikoski, GRI
REALTOR® Associate
Diane Turton Realtors – Rumson Office
8 West River Road
