August 2012 Real Estate Update

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As we sit back and relax during this otherwise slower month for real estate I wanted to share with you some of the happenings in our marketplace and how they impact you. As of this time in August last year, many of our markets were seeing a significant amount of inventory on hand. Fast forward to the same time this year and the change is fantastic!

Breaking down each area, here is a look at how our local real estate market performance has been plus a few tips on how this impacts you as a buyer or seller today.

South Orange, West Orange
We saw a surge of inventory last year and slowly over the past 12 months this has come down. Today, we have approximately 20% less inventory in these areas coupled with a sales increase of about 32% from last year. This is phenomenal news! Even though prices remained the same, what this tells us is that we are on the road to recovery from the harsh outcomes of the housing crisis back in 2007.

The Maplewood area saw a huge decline in the number of homes available on the market with as much as about 40% fewer homes this year compared to last! Sales improved during that time too, with a 9% increase in sales from the same time last year.

Millburn, Short-Hills and Summit
We have not seen a lot of change in these markets but mainly because there were no major struggles in these areas to begin with. Last year, inventory levels were fairly stable as were home sales. The same holds true this year, making Millburn, Short-Hills and Summit fairly level year over year. We did see a slight improvement in the number of sales.

Borough of Chatham
Like the Millburn, Short-Hills and Summit markets, the Borough of Chatham also experienced a fairly level real estate outlook this year as well as last. No real change in inventory levels were reported and a slight increase in sales took place this year versus the same time in 2011.

Chatham Township
There was more change reported in the Chatham Township area compared to the Borough, with Chatham Township registering 10% more homes available on the market. There was also a 13% decline in the number of sales in this area.

The most significant change we have seen was reported in Madison. With a huge dip in inventory this year from 70 homes on the market in 2011 to just 47 at the same time this year, this market is on track for a balanced market. With sales up 7%, it is a good time to sell right now especially as demand increases with fewer homes.
Considering the overall changes in our marketplace now is a great time for both sellers and buyers alike. The super low interest rates are holding steady for now so that means the cost of borrowing is significantly lower than it has been in years. In terms of selling your home, as the competition continues to increase with fewer and fewer available homes for sale, you can expect multiple bids and top dollar sales.

Contact me, your trusted real estate advisor, today for a customized consultation so we can discuss your real estate needs and get to work on achieving those goals right away! My email address is or you can call me at 973.214.0691. I look forward to hearing from you soon!