Bedminster NJ Real Estate 2011 Annual Market Report

Find out the latest real estate market information for Bedminster NJ 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 Bedminster NJ real estate market. If you are considering buying and or selling a home in 2012 in Bedminster 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.

Bedminster NJ Real Estate 2011 Annual Market Report

Closed Sales and Listings in Bedminster NJ from 2005 through 2011

As you can see from the chart above the volume of  Closed Sales in Bedminster has been trending downward for the majority of this period with the exception of 2009. The number of Listings have followed a similar pattern with the exception of 2011, where listing volume ticked up slightly ahead of 2010’s pace. In fact, inventory has risen by 13% from this same time last year from 7.6 to 8.6 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 more than 8 1/2 months to sell all of Bedminster’s current inventory. This figure indicates that Bedminster, like many of the surrounding towns is experiencing what we call a “Buyer’s Market” and will remain so for at least the short term. A buyer’s market is considered to be a market with an inventory of 7 or more months worth of homes to sell at any given time. With more homes to choose from, not to mention record low interest rates and low prices, things remain very advantageous to buyers right now. A “Balanced” or normal market is considered to have 5 to 6 months worth of inventory with no distinct advantage to either Buyers or Sellers.

Bedminster NJ Real Estate 2011 Annual Market Report

Average and Median Sales Price in Bedminster NJ from 2005 through 2011

The chart above indicates a rather steady trend in both the Average and Median Sale Prices in Bedminster 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 2007 at $512K and a low in 2008 at $373K. The good news is that prices have remained relatively stable during an extremely turbulent period.

Bedminster NJ Real Estate 2011 Annual Market Report

Average and Median List to Sale Price Ratio in Bedminster 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 in Bedminster are pricing their homes above market value, which is causing them to spend more time on market resulting in less money at closing. According to the chart above, 2005 and 2006 were banner years with sellers deviating a mere .3% to .6% off of their List Price. Since that time this ratio has increased to the point where sellers are discounting anywhere from 3.1% to the 3.5% range.

Bedminster NJ Real Estate 2011 Annual Market Report

Average and Median Days on Market in Bedminster 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 2008, which is another sign that the market may be finally starting to turn around.

Bedminster NJ Real Estate 2011 Annual Market Report

Rolling 13 Month Listing & Sold Activity in Bedminster 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 higher than it was in December of 2010, however there were more than double the amount of Closed Sales in 2011 as compared to 2010. A continuation of strong sales pace will help reduce the inventory level, which in turn will help to ensure a strong and robust market for both Buyers and Sellers in the Bedminster market.

 

What does the Bedminster 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 Bedminster 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.

 

For more information on Bedminster including its award winning schools, follow this link:

 

How to find Listings on your own:

For listings or information on Bedminster NJ 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 including Basking Ridge, Bernardsville, Far Hills and Peapack Gladstone 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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