Mendham NJ Real Estate 2011 Annual Market Report Mendham Township

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

Mendham NJ Real Estate 2011 Annual Market Report Mendham Township

Closed Sales and Listings in Mendham Township from 2005 through 2011

As you can see from the chart above the volume of  Listings in Mendham Township have been holding steady over the past 5 years with Closed Sales  gradually increasing over the past 2 years. On a positive note, inventory has decreased significantly by 34% from this same time last year down from 22 to 14.6 months, which is a big step in the right direction. Ideally, the inventory level should be between 5 and 6 months in order to be considered a “balanced” or normal market where neither Buyers or Sellers have any distinct advantages over one another.  Anything above this level is considered to be a Buyer’s market and anything below would be a Seller’s market. 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 approximately 14 1/2 months to sell all of Mendham Township‘s current inventory. This data indicates that the real estate market in Mendham Township is currently providing Buyers with the advantage, and should remain this way at least for the short term.

Mendham NJ Real Estate 2011 Annual Market Report Mendham Township

Average and Median Sale Price in Mendham Township NJ from 2005 through 2011

The chart above indicates a steadily declining level in the Average Sale Price of homes in Mendham Township NJ over the past 5 years in particular with highs of $1.2M down to $885K in 2011. Based on the high amount of standing inventory, I would expect to see prices in Mendham Township continue to drop in 2012.

Mendham NJ Real Estate 2011 Annual Market Report Mendham Township

Average and Median List to Sale Price Ratio in Mendham Township 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 Mendham Township are pricing their homes higher than their true market value, resulting in less money at closing. According to the chart above, 2008 saw the widest gaps in this ratio over the past 7 years between the List Price and Sell Price with sellers having to discount up to 6.7% off of their asking price in order to get their home sold. This ratio has ticked up in the past 2 years with sellers having to offer less of a discount, in order to sell their homes in this market, which is about average compared to many of the surrounding towns, especially in the towns west of Mendham.

Mendham NJ Real Estate 2011 Annual Market Report Mendham Township

Average and Median Days on Market in Mendham Township 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 data from this chart is directly proportional to the information contained in the previous chart (List to Sale Price Ratio). Better pricing of homes has resulted in a downward trend for the past 2 years in the amount of Days on Market which should help to further reduce the amount of inventory and result in higher demand and higher prices for sellers.

Mendham NJ Real Estate 2011 Annual Market Report Mendham Township

Rolling 13 Month Listing and Sold Activity in Mendham Township 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 down significantly (by 27 listings),  from December of 2010, which is positive news. In addition, Closed Sales were up slightly by 1 unit for the same period. The data is currently indicating that a trend towards a lower inventory is underway, which will be required in order to move Mendham Township closer to a “balanced” or normal market condition.

 

What does the Mendham Township 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.

 


For more information on Mendham Township including its schools, follow this link:

 

How to find Listings on your own:

For listings or information on Mendham Township 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 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 Morris County including MorristownMadison, 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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