If youâ€™ve been thinking about buying a home in Colts Neck, there are many reasons why you might want to do so sooner rather than later. Although nationwide home prices have increased over 10%, as of the end of August, the median price of a single-family home Colts Neck rose only 5% compared to a year ago. There are other objective reasons why now is a good time to buy a home in Colts Neck.
Letâ€™s look at Colts Neckâ€™s 8 month year-to-date statistics, focusing on the 4 key objective real estate indicators (items in green font are good news for home sellers, but bad news for home buyers; items in red font are bad news for home sellers, but good news for home buyers):
Sales: 61 in 2012, 80 in 2013 (+31%)
Listings: 98 in 2012, 112 at the end of August 2013 (+14%)
Median Sales Price: $600,000 in 2012, $631,950 in 2013 (+5%)
Absorption Rate: 10.3 months in 2012, 10.6 months now (weaker Demand vs. Supply)
As we said, the fact that the median price is up only 5% is good news for home buyers. The increased number of listings is also good news for buyers, because you have more homes to choose from. Most importantly, look at the real estate absorption rate. The real estate absorption rate is a calculation of how long it would take to sell all the homes that are currently listed, assuming that homes continue to sell at the rate for the past 12 months. In a â€œnormal marketâ€ the absorption rate is between 5 and 7 months, greater than 7 months is considered a â€œbuyerâ€™s marketâ€ and less than 5 months is considered a â€œsellerâ€™s marketâ€.
According to the absorption rate, Colts Neck is still in a â€œbuyerâ€™s marketâ€, whereas neighboring Marlboro, with an absorption rate of 4.6 months, is already in a â€œsellerâ€™s marketâ€. Two other upscale towns, Fair Haven and Little Silver, also have absorption rates less than 5 months.
If youâ€™re looking to buy in Colts Neck, youâ€™re going to have to pay more than you would have a year ago, but count yourself lucky to still be in a â€œbuyerâ€™s marketâ€ that has just a 5% 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 Colts Neck, look now while there's still a good supply of homes. If you find a home you like, you'd be wise to lock in a mortgage interest rate before rates go up again.
Currently the least expensive home listed for sale in Colts Neck is a 2 bedroom 1910 farmhouse being offered at $290,000. There are 9 other Colts Neck homes listed for sale for less than $500,000; there are 5 homes listed in the $500 - $600 thousand dollar range, and 10 more in the $600 - $700 thousand dollar range. If youâ€™re looking for new construction, youâ€™re going to have to pay more than $1 million.
Remember, if you find a listing for a home in Colts Neck you like, DONâ€™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 REALTORÂ® 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 Colts Neck- just call, text or email me and I'll get right back to you.
Leonard â€œLenâ€ Dunikoski, GRI
Diane Turton Realtors â€“ Rumson Office
8 West River Road
Rumson, NJ 07760
(732) 239-0739Â (cell)Â Â Â (732) 530-6686 (office)