Is There a Transformation In The Making?
Is the real estate market changing in Wayne, NJÂ from a buyer's market to a seller's market? In order to determine this transformation we have to analyze the market data first. To understand what determines a seller's market in any particular area we must first understand the definition:A Seller's Market
A seller's market is one in which there are more buyers than homes for sale. Since supply is less than demand, homes will be higher priced and more attractive to the sellers in the market. In contrast, a buyer's market is one in which there are lots of sellers and relatively few buyers, which leads to lower prices. A market's absorption rate is the best way to figure out whether a certain area is behaving as a seller or buyer's market. The absorption rate is calculated by looking at how many homes sold in a certain month and divide it by the total number of homes for sale at the end of the month. An absorption rate of 20% or above is usually deemed a seller's market since homes are selling relatively quickly and the number of months of supply is low.
According to information obtained from the Garden State Multiple Listing Service 38 homes sold and closed title from 9/1/2012 - 9/30/2012 and there were 175 homes listed for sale or under contract on 9/30/2012. Based on the above definition of a seller's market, WayneÂ nowÂ exceeds the 20% figure at 21.71% which defines a seller's market.
Is there a transformation in the making?
Remember there's no better time to buy and sell a home than right now. The affordability factor has never been better.
Happy House Hunting!
"All information in this blog is deemed reliable but not guaranteed."