The median price of a single-family home in Middletown increased by 5% in 2013 (from $380,000 in 2012 to $399,250). The median is the price at which 50% of the homes sold for more and 50% sold for less. It’s a better indicator than the mathematical average, which can be skewed by a handful of very high (or very low) priced home sales.
18% more Middletown homes sold in 2013 than in 2012; an increase in sales (i.e., demand) normally predicts higher home prices in the near future. However, we also so a 15% increase in the number of homes listed for sale (i.e., supply); more listings tend to result in lower home prices in the near future.
The real estate absorption rate looks at both demand and supply. If you’ve been following my posts you know that a real estate absorption rate of between 5 and 7 months is considered to be a “normal market”, whereas greater than 7 months is a “buyer’s market” and less than 5 months is a “seller’s market”. Middletown started the year with an absorption rate of 7.0 months and ended 2013 with a rate of 5.4 months, so we’ve been in a “normal market” all year. Some neighboring towns moved into “seller’s markets” during the year, notably Fair Haven and Little Silver, with absorption rates of 3.2 months and 3.0 months respectively.
The average Middletown home sold in slightly fewer cumulative days (84) than in the year before (90). If a home is sold on its first listing, we measure the days on the market (DOM). If a home is sold on its first listing, we measure the days on the market (DOM). However, if the listing expires before the home sells, once the home is re-listed we can measure either the DOM for the new listing or the number of cumulative days on the market (CDOM). The CDOM gives a much better idea of how long the home really took to sell.
If you’re a Middletown home owner, there are lots of things to be happy about: sales are up, prices are up, and homes are selling faster. If you’re thinking of buying a home in Middletown, you can be happy that the median sales price went up by just 5% and that there are more homes available for sale than there were a year ago.
Will Middletown become a “seller’s market” in 2014, like Fair Haven and Little Silver? We’ll be keeping a close watch on sales in the next few months to help answer that question.
Leonard “Len” Dunikoski, GRI
Diane Turton Realtors – Rumson Office
8 West River Road
Rumson, NJ 07760
(732) 239-0739 (cell) (732) 530-6686 (office)