Basking Ridge NJ Real Estate 2011 Annual Market Report

Find out the latest real estate market information for Basking Ridge NJ (Bernards Township) through 2011 in addition to a look back at the years in between to 2005. See what the trends are indicating and what is next for the Basking Ridge NJ real estate market. If you are considering buying and or selling a home in 2012 in Basking Ridge NJ, this valuable annual market report is an absolute must read.

Attention… all residential real estate is local! Not everything you read about online, in the papers and hear through major media outlets about the housing market is correct or relevant, especially when information is presented on a “national” or “regional” basis. There are many factors that make up the differences in local real estate markets, even from town to town and especially in a state like New Jersey with its inordinate amount of municipalities making it a challenge for some to drill down and obtain the correct market value of any given home. This is why it is important for both buyers and sellers to start with the latest “local” market data before they make any real estate decisions.

Basking Ridge NJ Real Estate - 2011 Annual Market Report

Closed Sales and Listings in Basking Ridge NJ from 2005 through 2011

As you can see from the chart above the volume of  Closed Sales in Basking Ridge has been trending downward for the majority of this period with the exception of 2009 – 2010. The number of Listings have followed a similar pattern but with a sharper drop off in 2011, which is good news. Less inventory will give buyers fewer choices and hopefully help accelerate the recovery process. Actual inventory has increased only slightly (by 9%) compared to last year at this time to from 5.4 months to 5.9 months. Simply stated, “inventory” represents the number of homes currently available or For Sale in a given market, or in this case a specific town. This means that with all things remaining equal, at the current rate of sales, it will take a little less than 6 months to sell all of Basking Ridge’s current inventory. This figure indicates that Basking Ridge is one of the few towns in what we call a “Balanced Market” and will remain so for at least the short term. A balanced market has 5 to 6 months worth of inventory with no distinct advantage to either buyers or sellers.

Basking Ridge NJ Real Estate - 2011 Annual Market Report

Average and Median Sales Price in Basking Ridge NJ from 2005 through 2011

The chart above indicates a rather steady trend in both the Average and Median Sale Prices in Basking Ridge NJ over the past 7 years. Compared to many of the surrounding towns, this is definitely not the norm, where prices have fallen off significantly during this time frame. The Average Sale Price reached a high for the period in 2006 at $750K and a low in 2009 at $605K. The good news is that prices have risen modestly for the past 3 years in a row.

Basking Ridge NJ Real Estate - 2011 Annual Market Report

Average and Median List to Sale Price Ratio in Basking Ridge NJ from 2005 through 2011

Sale to List Price ratio is the difference between a home being sold at full asking price and what a buyer actually paid for the home. The higher the ratio indicates that sellers are pricing their homes closer to what the correct or true market value will bear. Recent trending indicates sellers are pricing their homes more in line to what the market is demanding. According to the chart above, 2005 and 2006 were banner years with sellers having to discount a mere 1% to 2.5% off of their List Price. Since that time this ratio has remained fairly healthy and consistent.

Basking Ridge NJ Real Estate - 2011 Annual Market Report

Average and Median Days on Market in Basking Ridge NJ from 2005 through 2011

While this metric (the number of days a home is on the market) can be a bit misleading based on the way the data is reported on the Multiple Listing System, it does provide a broad indicator of current market conditions. The longer it takes to sell a home, the lower the price it will bring and vice versa. The good news is that 2011 reported the lowest amount of Days on Market since 2005, which is another sign that the market may be finally starting to turn around.

Basking Ridge NJ Real Estate - 2011 Annual Market Report

Rolling 13 Month Listing and Sold Activity in Basking Ridge NJ

Unlike the previous charts, the chart directly above focuses entirely on 2011 on a month to month basis of Listings and Sales activity. As you can see, the amount of Listings in December 2011 is slightly less than it was in December of 2010, with 3 less Closed Sales in 2011. A normal inventory level will continue to be a positive factor and help to ensure a strong and robust market for both Buyers and Sellers in the Basking Ridge market.

 

What does the Basking Ridge real estate market hold for 2012?

While it is impossible to make any long term predictions regarding the residential real estate market, especially at the national level, more experts and real estate prognosticators appear to agree (more so than in any of the previous 5 to 7 years) that 2012 may be the year the market finally hits the bottom in terms of pricing. In addition, there is a pent up amount of demand in terms of both buyers and sellers who have been sitting on the sidelines for a long time now with their plans on hold (in some cases up to  several years) who now feel they need to make a decision and get on with their lives.

Many of us would like to have the ability to time the market perfectly in order to avoid selling at the bottom or in the case of buyers to do exactly the opposite. Unfortunately, the rate at which information is gathered, (especially for real estate) does not lend itself to such timely decision making scenarios. It may take anywhere up to 6 to 12 months before we will know for sure when the market finally begins to reverse itself and by that time the opportunity to time the market will be lost.

Unlike most of the surrounding towns, many of the communities within Basking Ridge weathered the real estate downturn very well with minimal declines in prices and a demand for homes that remained high throughout this 7 year period.

 

Why Basking Ridge NJ is a great place to live…

Basking Ridge offers a uniquely high quality of life for its residents which include Mid-town direct train service to NYC, an award winning public school system along with an excellent public library, parochial and private school choices, diverse cultural and artistic outlets, and one of the most comprehensive parks and recreation programs in the state including numerous nature preserves, historical sites, all types of athletic fields and facilities, organized leagues for residents of all ages, walking/running/riding/bicycle trails, a community pool and dog park. The Somerset Hills YMCA has two branches in the town, one for families and one that primarily caters to adults. There is also an abundance of fine golf courses in town and the surrounding area both public and private. Though the town is large in area, it has a close-knit community feel. The hamlet of Basking Ridge has a tree-lined center of town, is pedestrian friendly and features a variety of clothing stores, quaint deli’s, several family-friendly and upscale dining options, specialty shops and boutiques, and many other thriving retail businesses.

All of the amenities and features mentioned above, from location, commuting, education, employment, recreation, cultural, community and overall high quality of life standards are just several examples of what makes Basking Ridge such a great place to live and the overwhelming choice for buyers looking for the best of what northern New Jersey has to offer.

 

For more information on Basking Ridge including its award winning schools,  follow this link:
How to find Listings on your own:

For listings or information on Basking Ridge or any of the surrounding towns in Somerset County, parts of  Hunterdon, or Morris County simply use the search tools located on the right side of this page. All listings are updated throughout the day so be sure to come back often for the most current information. If you are unable to find what you are looking for using the search functions on this website, or you are looking for a home that is unique with specific features, feel free to contact me direct and let me know exactly what they are. My colleagues and I preview all kinds of properties each week and will be sure to identify just what you are looking for. In addition, my office often features “exclusive” listings that are not released to the public that might be of interest to you as well. I will be glad to answer all of your questions and arrange to show you the homes of your choice at a time convenient to your schedule.

I also serve the surrounding towns in northern Somerset County as well as select towns in Morris County including Morristown, Morris Township, Madison, the Chathams, the Mendhams, the Chesters and Long Valley (Washington Township) along with the Hunterdon County towns of Lebanon and Tewksbury Townships.

 

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