Madison NJ Real Estate Market October 2011

The latest information for the Madison NJ Real Estate Market October 2011 indicates there has been a gradual decrease in the amount of homes listed For Sale over the past year in the month of October after three previous years of increasing inventory. There are currently (66) homes For Sale, as compared to (85) homes for this same period last year, (55) in October of 2009 and only (35) in the same month of 2008. Currently there are (7) Pending Sales as compared to (9) at this same time in 2010. There were (9) Closed Sales this month as compared to (7) from the same time last year with (11) in 2009 and (6) in 2008. The Average Sales Price as of the end of October is $732,022, which is up modestly from $576,143 during this same period last year.

Madison’s current supply of available inventory (Absorption Rate) has increased by 13% from last year at this same time up modestly from 5.2 to 5.8 months. This figure represents a “normal” or “balanced” market with no distinct advantage to either buyers or sellers from an inventory perspective. There are other factors however in favor of buyers such as interest rates being at or near all time lows with prices continuing to be under downward pressure from an increased rate of distressed sales along with an overall weak economy.

Residential Single Family Properties

Number of ACTIVE listings (homes For Sale) on the market: 66
Number of PENDING transactions (homes Sold) in October: 7
Number of CLOSED sales (homes Under Contract) in October: 9
Average Sales Price (Sold): $732,022
Average List Price (For Sale): $937,671
Sales to List Price Ratio: 97%
Average Days on Market: 123
Absorption Rate* (Months of Supply): 5.8 months

*This figure represents the number months it will take to sell off all of the inventory at the present rate of sales:

4 months or less is considered to be a Seller’s market with limited inventory for buyers to choose from.
5 to 6 months is considered to be a “normal or balanced” market.
7 months or more is considered to be a Buyer’s market with excess inventory and plenty of homes for buyers to choose from.