It’s 2012 and Summit, NJ is Selling!
The Number of Homes Under Contract in Summit New Jersey for January and February in 2009, 2010, 2011 and 2012.
Good news!! In February 2012 more homes in Summit New Jersey have gone under contract year-to-date in 2012 than in the past four years. In fact, 44.8% more than last year, 55.6% more than in 2010, and a whopping 200% more than in 2009! In the chart above, it can be easily seen that the real estate market in Summit each February for the last several years has been progressively stronger.
For more statistics on the Summit Real Estate market go to: www.SummitTrends.com. If you are considering buying or selling a home, having a perspective on what direction the market is heading will help you to make informed decisions. I look forward to being of service to you, or to your friends, co-workers or family members in the coming year. It is my goal to help you steer with confidence through this complex and changing market. If you are thinking about moving, contact Judi for a free consultation and a market analysis of your home.
SUMMIT, NEW JERSEY: 2011- A YEAR IN REVIEW
Summit inventory in January of 2012 was at the lowest level it has been at any given time in Summit in the last six years. This is noteworthy, since the inventory last January was the lowest it had been in any January since 2007. Looking back at 2011 as a whole, the Summit market was strongest in the first quarter, with relatively high demand and low supply. As can be seen in the chart above, starting in April 2011, the inventory in Summit rose above the level it had been in 2010, and remained at just above the 2010 levels through the remainder of the year (but still lower than the inventory levels in 2009).
2008-2011 Year-over-year view of Active Inventory in Summit, NJ
We can see that in the chart above and below, the Summit market was weaker with higher inventory and fewer accepted offers through most of Q2-Q4 in 2011 than it had been in the same time period in 2010. In fact, there were a total of 25% fewer closed sales in Summit in all of 2011 than there were in 2010. Most analysts, however, are predicting the overall national real estate market to pick up beginning this Spring, and that more homes will sell in 2012 than in 2011. We can see that this improvement in market strength has already begun in Summit, with not only fewer homes on the market, but at least as many accepted offers on homes in both December 2011 and January 2012 year-over-year, than in the past several years.
2008-2011 Year-over-year View of Accepted Offers in Summit, NJ
The Final Tally
Yes, it appears we may have turned the corner in Summit, and that we are entering into a stronger market. As previously mentioned, for the past 2 months, 1) inventory is lower than it has been, and 2) the number of homes going under contract is up year-over-year. Absorption Rate (AR) is a metric that measures these two tracking points, and shows the relative strength of the Real Estate market. By tracking AR over time, we can see where the market may be heading. This metric can be viewed as the theoretical number of months it will take to sell off the existing inventory of homes in a specific market. The lower the AR, the stronger the market, and an AR of around 6 months can be considered to be a neutral market. From the chart below, we can see that since this past December, the Summit market is the strongest it has been since 2009. In January 2012 the Absorption Rate in Summit was 6.2 months, compared to 13.7 months last January, and 34.5 months in January of 2009! For more statistics on the Summit Real Estate market go to: www.SummitTrends.com.
Number of Months of Inventory in Summit, NJ January 2009-January 2012
If you are considering buying or selling a home, having a perspective on what direction the market is heading will help you to make informed decisions. I look forward to being of service to you, or to your friends, co-workers or family members in the coming year, to help you to steer with confidence through this complex and changing market. If you are thinking about moving, contact Judi for a free consultation and a market analysis of your home.
Pleased to Announce My New Affiliation
Welcome 2012! I am excited to start this year with an announcement that I have just affiliated myself with Keller Williams Realty in Summit, the 2011 Garden State MLS office market leader. I believe that Keller Williams as a company is poised to dominate not just the local market, but the national Real Estate market as well, given it’s leading edge educational focus to support it’s agents to be nimble and keep ahead in best practices in these changing times. This new affiliation will help me to best provide for you the type of innovative service that this 21st Century new Information Age is demanding.
In Summit, the Spring Buying Spree Has Begun!
Real Estate is moving in Summit! In February of 2011 there were 38% more homes under contract than in February 2010, and 120% more than in 2009.
Homes Under Contract in Summit NJ
Absorption Rate, a real estate metric that measures the strength of the selling market can be calculated as the number of homes currently available on a given date, divided by the number of homes that went under contract in the previous 30 days. The indicator is a theoretical number of how many months it will take to sell off current inventory, given the current sales pace and quantity of inventory available. When the Absorption Rate is 5 or less, it is a Sellers Market, with rising prices.
Calculated on March 6, 2011, the Absorption Rate in Summit was 3.3, indicating a very strong market. Twenty-six homes went under contract in that period, almost a third of which went under contract between March 1st and March 4th! Not surprisingly, we have been seeing multiple offers on properties.
For more statistics on the current Summit Real Estate market go to www.SummitTrends.com. To find out how much your home is worth in the current market, call Judi for a free, no-obligation Market Analysis.
Judith “Judi” Paris, Broker/Sales Associate
Coldwell Banker Realtors- Summit, NJ
(O) 908-522-3631 (C) 973-902-HOME
Visit me at: www.BestHomeResults.com
Follow me on Twitter: @JudiParis
Statistics from Coldwell Banker Market Action Reports for February 2011
Summit NJ Sends Mixed Signals in the January Real Estate Market
Accepted offers were down in Summit in January. However, there is also a notable lack of ‘fresh’ inventory; inventory remains relatively low and very few homes are coming onto the market. Although the drop in the number of homes with accepted offers could be interpreted as a softening of the market, ‘in the trenches’ I still see buyers as very active in Summit; but buyers are waiting for ‘the right home’ to come on the market, and I believe that demand is actually growing because of the lack of new inventory. In January of 2011, there were 29.7% fewer new listings than in January 2009, and 10.3% fewer than in January 2010.
The Number of Properties Available for Sale in Summit NJ verses the Number of Accepted Offers
Some market indicators show the Summit market as stronger than in the past couple of years. The average number of ‘Days on the Market’ for homes sold in Summit in January of 2011 was down a whopping 70.9% from that of last January, and significantly down 52.7% from January of 2009. Meanwhile, the ratio of the Sales Price (SP) to the Original List Price (OLP) was 98%, up from 94.2% in January of last year, and up from 94.9% in January of 2009. For more statistics on the Summit Real Estate market go to: www.SummitTrends.com.
If you are wondering if now is a good time to sell your home, or if you are waiting for better weather to put your home on the market, it is not too early in the season for an in-home consultation. To find out what the current market value is for your home, you can call me to receive a free ‘Market Trend Analysis’. I can also provide input on how to ‘stage’ your home to get the highest possible net return. I look forward to being of service to you, or to your friends, co-workers or family members, to help you to steer with confidence through this complex and changing market.
Judith “Judi” Paris, Broker/Sales Associate
Coldwell Banker Realtors- Summit, NJ
(O) 908-522-3631 (C) 973-902-HOME
Visit me at: www.BestHomeResults.com
Follow me on Twitter: @JudiParis
Statistics from Coldwell Banker Market Action Reports for January 2011
SUMMIT, NEW JERSEY: 2010- Real Estate, A YEAR IN REVIEW
In the beginning of every year, I like to look back at many of the details of how the real estate market behaved during the course of the previous year(s), to look for patterns, which may offer insight on the market from the past year, and perhaps even shed some light on what to expect in the coming year.
Inventory is currently at the lowest level it has been at any given time in Summit in the last four years. This, in part, is due to the fact that fewer new listings came on the market in Summit over that period. Not only were there fewer new listings in Summit in 2010 as a whole, but also in December, this past month, fewer new listings came on in Summit than in any other month over the last decade! Current inventory is also currently at a low-level because more homes had accepted offers (i.e. went ‘under contract’) in all of 2010, than in either 2008 or 2009. In other words, supply in Summit is low both because demand is up and new supply is down.
The amount of supply of homes for sale, compared to the amount of demand for those homes, gives an indication of how strong the real estate market is. This is important information to know if you are purchasing a home, or considering selling one. More specifically, looking at the ratio of the number of accepted offers to the number of new listings in a given period is a good measure of market strength. By understanding how strong the market is, and how strong it appears it will be moving forward, I can help you to have a perspective about market values; which will impact how much you choose to price your own home for sale, or how much you choose to offer on one you wish to purchase.
Comparing the total number of new listings to the number of homes with accepted offers (i.e. how many went under contract) shows that in Summit, the market was clearly stronger in 2010 than it was in 2006, 2007, 2008 or 2009.
A look at market strength on a month-to-month basis shows trends, which again is helpful in giving perspective on where market values are going. The measure ‘Months Supply of Inventory’ (MSI) is another calculation often used to track real estate market strength over time. The lower the MSI, the stronger the market, and an MSI of 5 or less is typical of a ‘Seller’s Market’. Looking at the chart on the right, in 2010 the market strength in Summit has been strong since the Spring market began in April of this year. Comparing MSI year-over-year (because the real estate market is seasonal, this is more meaningful than comparing month-to month), we can see the largest difference between 2010 and 2009 in April and May. This year in Summit, overall, there has been a ‘Seller’s Market’ since April. For more statistics on the Summit Real Estate market go to: www.SummitTrends.com
If you are considering buying or selling a home, having a perspective on what direction the market is heading will help you to make informed decisions. I look forward to being of service to you, or to your friends, co-workers or family members in the coming year, to help you to steer with confidence through this complex and changing market. Please accept my wishes to you for a happy, healthy, and successful 2011! If you are thinking about moving, contact Judi for a free consultation and a market analysis of your home.
Judith “Judi” Paris, Broker/Sales Associate
Coldwell Banker Realtors- Summit, NJ
(O) 908-522-3631 (C) 973-902-HOME
Visit me at: www.BestHomeResults.com
Follow me on Twitter: @JudiParis
Statistics from Coldwell Banker Market Action Reports for December 2010
Strong Summit New Jersey 2010 Real Estate Market Bucking the Trend
The state of the real estate market is much stronger in Summit than it is nationally, than in the overall New Jersey market, than in the Union County Market, and even than in the real estate market of surrounding towns. The Months Supply of Inventory (MSI) is a measure of market strength, and is the theoretical number of months it will take to sell off the current inventory in a specific location, given the number of homes available for sale and the current rate of home sales. The lower the MSI, the stronger the market. An MSI below 6 is considered a Seller’s market, and above 7 is considered to be a Buyer’s market (an MSI between 6 and 7 is a neutral market). In November of 2010, Summit experienced a Sellers market with an MSI of 3.4, while the surrounding towns were in either neutral or Buyer’s markets. The 51% decrease in Summit’s MSI, shows that Summit’s market was actually 51% stronger in November ’10 than it was in November ’09. Not only was the November 2010 real estate market stronger in Summit than it was in New Providence, Millburn/Short Hills, The Chathams, and Berkeley Heights, but the percent change in it’s own market strength for November ’09 compared to November ’10 was more favorable than the percent change in market strength in those other towns. Additionally, the percent change in the Year-to-Date Sales (through November), comparing the number of homes sold in 2009 to those sold in 2010 was 30% greater in Summit, far more favorable than that in New Providence, Millburn/Short Hills, The Chathams and Berkeley Heights. For more statistics on the Summit Real Estate market go to: www.SummitTrends.com.
* % change of the data for November 2009, compared to that for November 2010
For more details on the local data statistics go to www.NJMarketTrends.com. If you are looking to buy or sell a home in Union, Morris, Essex or northern Somerset Counties of New Jersey- and, if you appreciate honest, savvy service contact Judi for a free, no obligation consultation.
Judith “Judi” Paris, Broker/Sales Associate
Coldwell Banker Realtors- Summit, NJ
(O) 908-522-3631 (C) 973-902-HOME
Visit me at: www.BestHomeResults.com
Follow me on Twitter: @JudiParis
Statistics from Coldwell Banker Market Action Reports for November 2010
Capital Gains Tax for Investment Properties to increase in 2011
Owners of Real Estate investments who are considering selling, should be aware of a noteworthy tax incentive to sell their investment properties in 2010, rather than afterward. The capital gains tax is expected to rise considerably in 2011. A capital gain occurs when the amount realized on the sale of the asset is greater than the taxpayer’s basis, loosely the purchase price plus any monies invested in the asset, less any fees, taxes and depreciation deductions claimed. Short-term capital gains are for investments held for a year or less before being sold, and incur a greater tax burden than Long-term capital gains, which are for investments held over a year.
American taxpayers have been on a ‘tax holiday’ since 2003, when legislation was passed which largely reduced capital gains taxes, but only through 2008. On May 17, 2006, George W. Bush signed the Tax Reconciliation Act, which extended this tax reduction through 2010, and additionally eliminated all capital gains tax for those in the tax brackets of 10 or 15%. Starting in 2011, the current maximum 15% Long-term Capital Gains Tax is scheduled to revert to 20% for those in the 25-35% tax brackets, and back to 10% and 20% respectively for those in the 10 and 20% tax brackets.
For more information about capital gains, go to www.IRS.gov and refer to Publication 550, ‘Investment Income and Expenses’, or Publication 17, ‘Your Federal Income Tax’. Please consult with your tax advisor on how the changing tax laws will affect you specifically. If you are considering selling or purchasing any residential investment properties in Union, Morris, Essex or Somerset Counties of New Jersey, you can call Judi Paris for a free, no obligation consultation.
Judith “Judi” Paris, Broker/Sales Associate
Coldwell Banker Realtors- Summit, NJ
(O) 908-522-3631 (C) 973-902-HOME
Visit me at: www.BestHomeResults.com
Follow me on Twitter: @JudiParis
Good News: Strengthening Real Estate Market!
Encouraging report: the local real estate markets in Union, Morris, and Essex Counties of New Jersey have been showing signs of strengthening since the third quarter of 2009. For one, the Absorption Rate for most local towns was lower in Q4 of 2009 compared to Q4 of 2008 (the lower the Absorption Rates, the more demand compared to supply, and the stronger the market). Also, looking specifically at January 2010 data compared to January 2009 for Summit, Millburn/Short Hills, Chatham Borough, Chatham Township, Madison, Morris Township, Morristown, and Randolph, most indicators point to a strengthening market. Although most sellers are feeling discouraged by the recent decline in home values, real estate is becoming more affordable to buyers, which in turn is leading to more home purchases and a stronger market. January was the eighth straight month that the number of home sales throughout New Jersey was higher in 2010 than in the same month of 2009.
Summit:
50% more homes were sold in January 2010 compared to January 2009, and there were 12.5% fewer properties available for sale. Median sales prices remained basically the same. Looking back to Q4 of 2009, the absorption rate in Summit was 9.2 months, compared to 34.8 months in Q4 of 2008.
Millburn/Short Hills:
45% more homes were sold in January 2010 compared to January 2009, and there were 18.2% fewer properties available for sale. Median sales prices were down 21.7%. Looking back to Q4 of 2009, the absorption rate in Millburn/Short Hills was 5 months, compared to 9 months in Q4 of 2008.
Chatham Borough:
450% (!) more homes were sold in January 2010 compared to January 2009, and there were 18.2% fewer properties available for sale. Median sales prices were down 21.7%. Looking back to Q4 of 2009, the absorption rate in Chatham Borough was 3 months, compared to 12 months in Q4 of 2008.
Chatham Township:
33.3% more homes were sold in January 2010 compared to January 2009, and there were 11.5% fewer properties available for sale. Median sales prices were down 39.8%. Looking back to Q4 of 2009, the absorption rate in Chatham Township was 7 months, compared to 16 months in Q4 of 2008.
Madison:
12.5% more homes were sold in January 2010 compared to January 2009, and there were the same number of properties available for sale. Median sales prices were actually up 6.4%. Looking back to Q4 of 2009, the absorption rate in Madison was 4 months, compared to 7 months in Q4 of 2008.
Morris Township:
128% more homes were sold in January 2010 compared to January 2009, and there were 6.2% more homes available for sale. Median sales prices were down 4.6%. Looking back to Q4 of 2009, the absorption rate in Morris Township was 6 months, compared to 11 months in Q4 of 2008.
Morristown:
44% fewer homes were sold in January 2010 compared to January 2009, and there were 13% fewer homes available for sale. Median sales prices were down 3.1%. Looking back to Q4 of 2009, the absorption rate in Morristown was 7 months, compared to 12 months in Q4 of 2008.
Randolph:
37.5% more homes were sold in January 2010 compared to January 2009, and there were 5.3% more homes available for sale. Median sales prices were actually up 4.9%. Looking back to Q4 of 2009, the absorption rate in Randolph was 6 months, compared to 10 months in Q4 of 2008.
Homeowners have you been waiting or hesitating to put your home on the market? Contact Judi for a consultation about the market trend in your town, and a free, no obligation Comparative Market Analysis of your home.
Judi Paris, Broker/Sales Associate
Coldwell Banker Realtors- Summit, NJ
(O) 908-522-3631 (C) 973-902-HOME
Visit me at: www.BestHomeResults.com
Follow me on Twitter: @JudiParis
Quarterly Absorption Rate Data from the ‘Otteau Report’; the rest of the above data comes from the Garden State Multiple Listing Service.
