Atlantic Highlands is a small town with relatively few home sales compared to larger neighboring towns like Middletown. However, it’s an attractive location for many reasons, especially the fine views of Sandy Hook Bay (and the New York City skyline in the distance) and its high-speed ferry for commuting into Manhattan.
If you’re thinking of buying a home in Atlantic Highlands, it’s important that you understand the LOCAL real estate market.
The 4 key objective indicators we really want to look at are Atlantic Highlands’ 2013 7- Month Year-to-Date statistics. Here are the 4 key, objective real estate indicators:
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Sales: 25 in 2012, 24 in 2013 (-3%)
Listings: 33 in 2012, 35 at the end of July 2013 (+6%)
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Median Sales Price: $329,000 in 2012, $510,000 in 2013 (+55%)
Absorption Rate: 10.2 months in 2012, 7.4 months now (stronger Demand vs. Supply)
The combination of decreased sales and more homes on the market normally predicts lower prices in the near future, but that’s just the opposite of what we’re actually seeing. Comparing 25 sales to 24, or 33 listings to 35, gives you a percentage change that’s based on a small change to a relatively small number; I wouldn’t draw any firm conclusions from such changes.
The significantly stronger real estate absorption rate predicts that sales prices will rise. The real estate 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 a home in Atlantic Highlands, the current rate of 7.4 months is not very good news, because in one year we’ve moved from a “buyer’s market” almost to a “normal market”.
There’s one important thing to note, however- 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 buying a home in Atlantic Highlands, you might want to act sooner rather than later. There aren’t a lot of homes to choose from, especially if you’re looking at homes on higher ground. If you find a listing for a home 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 just helped a nice young couple buy their first home nearby in Hazlet. We worked together for many months, and they gave me a glowing recommendation (see my Profile). Whether you’re a first time home buyer or a repeat buyer, I’d be glad to help you find exactly the right home. Call, text or email me and let me know what you’re looking for.
What other REALTOR® gives you this kind of objective information about the LOCAL real estate market?
Len
Leonard “Len” Dunikoski, GRI
REALTOR® Associate
Diane Turton Realtors – Rumson Office
8 West River Road
