Hunterdon County’s only Monthly Real Estate Market Conditions Update July 2013

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Hunterdon County June sales active with 156 homes sold

JP 180  X 180marketupdate(Below is a market update on the real estate and property activity in Hunterdon County – including Clinton Township, Flemington, Raritan Township, Readington Township and the Town of Clinton – as of the end of June 2013.  This information is provided by courtesy of Hunterdon County Realtor Joe Peters.)

 

06 recap

In June of 2013, 156 properties went “under contract” in Hunterdon County, down from the 172 “under contract” properties in May of 2013.  Also during June, 180 properties were newly listed.

Statistics compiled at the end of May show an overall current supply of about 6 months (4 to 6 months is a normal market) for Hunterdon County, with an average of 87 days on the market for the units that were sold.

It is interesting to note that we currently have about 16% less inventory on the market than we did at this time last year.  And, in May we actually sold about 15% more than we did in the same period last year.  As a result, we are seeing the current market turn into a seller’s market in many popular price points with prices increasing.

Sales broke down as follows:

  • 76 percent of sales were in houses under $500,000
  • 24 percent of sales were in houses more than $500,000
  • 10 percent of sales were in houses more than $700,000

Only 2 areas in Hunterdon County reported no sales at all in the past month which were:

  • By townFlemington
  • Hampton

And, these ten areas had only had one or two sales each last month:

  • Alexandria
  • Bethlehem
  • Bloomsbury
  • Califon
  • Franklin
  • Frenchtown
  • Hampton
  • Lebanon Boro.
  • Milford
  • Stockton
  • W. Amwell

At the same time, there were the several usual hot spots:

  • Clinton/Clinton Township with 18 sales
  • Raritan Township with 30 sales
  • Readington Township with 22 sales

These three areas combined for nearly 45 percent of total sales last month.

The average new listing coming on the market in April was at nearly $478,421 while the average price of a unit going “under contract” was at nearly $412,788 or 14% less.

Houses that are priced properly are selling. There is a current market for them with many active buyers. But more than ever, buyers and sellers need to be working with an experienced agent who has a strong grasp of the market conditions specific to your local area. I can share information on all of these statistics with you. Just call me at 908-238-0118. I can offer you knowledgeable and home_worth.jpgproven advice based upon my more than 20 years of experience, including a special emphasis on Hunterdon County.  Meet Joe Peters (short video)

 

Other conditions impacting sales in our area are:

New Jersey Home Sales:

Home purchase activity soared in May having a 23% increase in signed purchase contracts year over year.  And, since last April rose by 22% over the prior year, we are seeing a 51% increase in demand over the past 24 months.

At the same time, the number of homes being offered for sale in New Jersey now equates to 5.7 months of sales as compared to 8.4 months one year ago.  As a result, sellers are gaining the upper hand in price negotiations.

The rising mortgage rates are also feeding this buying frenzy.

Interest Rates:

Interest rates have crept up slightly to 4.5% for a 30 year conventional mortgage. This upward movement has added a sense of urgency to many buyers and in a large part is driving the market.  A fifteen year conventional mortgages have crept up to the very low 3% range.

New Jersey Job Front:

On the national quarter to date job creation basis has slowed to 486,000 jobs vs. 622,000 created in Q1. And the private sector job creation is on pace to add 500,000+ jobs in Q2.

In May New Jersey private sector jobs recorded a gain of 14,300 private sector jobs which is the largest increase since December of 212.  The state has added over 72,000 private sector jobs in 2013.  The NJ unemployment rate has been declining steadily and is at 8.6% which is its lowest level since March or 2009..

Rental Market Trends:

More restrictive mortgage standards are forcing younger age buyers to postpone their transition to home ownership until later in life than was previously seen.

And, many older age households are selling their homes and moving into rentals to close their gap in underfunded retirement plans which were affected by the recent economic downturns.

Foreclosures:

May foreclosure filings in NJ increased by 87% over the same month last year. The state is now ranked 14th in the nation in foreclosure filings.

YTD foreclosure finings in New Jersey are on pace to increase 40% year over year.

The positive news is that in a market starved for inventory, these foreclosures are now only selling at a 5% discount which will have little impact on overall prices.

Recap:

We have fewer listing, more buyers, lower pricing and rapidly rising interest.  The result is a mixed market based on location and price point.  The foreclosures are to some extent helping to offset the fewer listings.  As a result, prices have begun to stabilize and are actually rising in the more popular price points.

 

Other recent Real Estate related News Items…

 

Note:

ask_joe.jpgThe information presented is deemed accurate but not reliable or guaranteed. Reasonable precautions were taken in the preparation and presentation of this information to ensure accuracy, but the author assumed no liability for any actions taken based on this information. Some opinions expressed represent forecasts of economic conditions as the impact real estate values. All such information is solely conjecture and should be regarded as opinion only and not serve as the sole basis of any financial decision.

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About Joseph Peters

Your “Local Neighborhood Specialist” focused on the Hunterdon, Somerset & Warren County areas. As an agent with Weichert Realtors, my 20+ years of residential real estate experience can benefit you in locating a new property or in the marketing and selling of your current one. I can be reached at (908) 238-0118 or via www.jpeters.com
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