If you’ve been thinking about buying a home in Middletown, you may not realize how fortunate you are. While nationwide home prices have gone up by more than 10%, as of the end of August, the median price of a single-family home in Middletown has only increased by 2% compared to a year ago. So is this still a good time to buy in Middletown?
To try to answer that question, let’s look at Middletown’s 8 month year-to-date statistics, focusing on the 4 key objective indicators (items underlined in italics are good news for home sellers, but bad news for home buyers; items in bold font are bad news for home sellers, but good news for home buyers).
Sales: 357 in 2012, 418 in 2013 (+17%)
Find out what's happening in Middletownwith free, real-time updates from Patch.
Listings: 349 in 2012, 357 at the end of August 2013 (+2%)
Median Sales Price: $385,000 in 2012, $394,000 in 2013 (+2%)
Find out what's happening in Middletownwith free, real-time updates from Patch.
Absorption Rate: 8.0 months in 2012, 5.9 months now (stronger Demand vs. Supply)
As you can see, 3 of the 4 indicators are good news for home sellers and bad news for home buyers. The 3 indicators are also predicting higher home prices, and only the increased number of listings is predicting lower prices in the future. To me the key indicator is the real estate absorption rate. That's a calculation of how long it would take to sell all the homes on the market, if homes continue to sell at the rate they did in the past 12 months. An absorption rate greater than 7 months is considered a "buyer's market", while a “normal market” is between 5 and 7 months and a "Seller's market" is less than 5 months. In one year Middletown changed from a “buyer’s market” into a “normal market” for the fourth month in a row. If you’re looking to buy, you’re going to have to pay more than you would have a year ago, but count yourself lucky to be in a “normal market” that has just a 2% median price increase.
Traditionally there's an upswing in the number of home sales between Labor Day and Thanksgiving, and then a relatively quiet real estate market until early spring. If you're thinking of buying a home in Middletown, look now while there's still a good supply of homes on the market. If you find a home you like, you'd be wise to lock in a mortgage interest rate before the rates go up again.
Middletown is a large town with many distinct areas and neighborhoods covering a wide range of prices. The less expensive homes tend to be Capes, Ranches or Split Levels. Some of them were damaged in super storm Sandy, but others are in great condition. Homes prices above the median offer a wide variety of styles and lot sizes.
If you’re thinking about new construction, there are both lots and already-built homes available in many parts of town. If you build East of Route 36 or in a flood plain you’ll have to build on pilings or otherwise raise the home to meet FEMA guidelines. You might want to consider a Pennsylvania builder who specializes in low-cost prefab homes built on pilings, and who has a model home in Seaside Heights.
Remember, if you find a listing for a home in Middletown you like, DON’T CALL THE LISTING AGENT. The Listing Agent works for the Seller, and has a fiduciary responsibility to get the highest price. You want to work with a REALTOR® whose undivided loyalty is to YOU, and who will negotiate the LOWEST price.
I'd be glad to help you find exactly what you're looking for in Middletown- just call, text or email me and I'll get right back to you.
Len
Leonard “Len” Dunikoski, GRI
REALTOR® Associate
Diane Turton Realtors – Rumson Office
8 West River Road
Rumson, NJ 07760
(732) 239-0739 (cell) (732) 530-6686 (office)
