Morristown NJ Real Estate Market November 2011

Morristown NJ Real Estate Market November 2011

Attention! All residential real estate is local! Not everything you read about 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 small state such as New Jersey. This is why it is important for both buyers and sellers to obtain the latest “local” market data before they make any real estate decisions.

Here you will find out all of the latest information for the Morristown NJ Real Estate Market November 2011. The number of homes listed For Sale in the month of November has declined steadily in each of the past four consecutive years by a total of 22%. There were (123) homes For Sale in November, as compared to (132) homes for this same period last year, (145) in November of 2009 and (158) in the same month of 2008. There were (8) Pending Sales this November as compared to (10) at this time last year, (11) in 2009 and (12) in 2008. There were (7) Closed Sales in 2011 as compared to (8) from the same time last year with (15) in 2009 and (12) in 2008. The Average Sale Price is currently $326,189 which has dropped steadily in three out of the past four years.

Inventory?

Absorption Rate?

What do these mean and why are they important?

INVENTORY – Simply stated, “inventory” represents the number of homes currently available or For Sale in a given market, or in this case a specific town.

ABSORPTION RATE – This figure indicates the time (in terms of months) it will take to sell off all of the current inventory, based on the current rate of sales, excluding any new homes that come on the market.  In other words, if the absorption rate in a given town is 5 months, it will take that long to clear out (sell) all of the homes currently on the market (inventory) without counting any new listings that hit the market during that same 5 month time frame.

WHAT DOES THIS MEAN AND WHY IS THIS IMPORTANT? – The following breakdown explains the impact of Absorption Rates and what they can tell us about current market conditions:

    • 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.

Generally speaking, there is a natural tendency for the market to absorb lower and medium priced homes quicker as compared to homes priced $800,000 and above. While it is true that the more expensive a home is has some direct relationship with time on market, it is also important to note that other factors such as price, condition/appearance of the home, proper marketing, etc. all play an important role in how long a home takes to sell, even those homes on the high end.

Morristown’s Absorption Rate has increased slightly for the period by 7% from last year at this same time up from 13 to 13.9 months. This means it will take just under 14 months to sell off the the existing inventory based on the current rate of sales (excluding new listings hitting the market during that time). This figure indicates that inventory has increased and buyers continue to have a significant advantage with many homes from which to choose. In addition, interest rates remain at or near all time lows with prices continuing to be under downward pressure from a variety of factors including 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:                              123
  • Number of PENDING transactions (homes Under Contract) in November:               8
  • Number of  CLOSED sales (homes Sold)  in November:                                        7
  • Average Sales Price (Sold):                                                                  $326,189
  • Average List Price (For Sale):                                                               $415,702
  • Sales to List Price Ratio:                                                                              90%
  • Average Days on Market:                                                                              142
  • Absorption Rate (Months of Supply):                                                 13.9 months
Morristown NJ - Rolling 13 Month Listing & Sold Activity - November 2011

Rolling 13 Month Listing & Sold Activity - November 2011

Morristown NJ - Homes Listed For Sale - November

Homes Listed For Sale - November

Morristown NJ - Pending Sales (Under Contract) - November

Pending Sales (Under Contract) - November

Morristown NJ - Closed Sales (Sold) - November

Closed Sales (Sold) - November

Morristown NJ - Average Sales Price - November

Average Sales Price - November

For listings or information on Morristown NJ or any of the surrounding towns in  Morris, Somerset or parts of Hunterdon 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 function 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 Morris County including Morris Township Madison, the Chathams, the Mendhams, the Chesters and Long Valley (Washington Township), as well as select towns in northern Somerset County including Basking Ridge, Bernardsville, Bedminster, Peapack Gladstone and Far Hills along with the Hunterdon County towns of Lebanon and Tewksbury Townships.

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