Well we are finally in a normal, borderline seller’s market. As the inventory tends to remain low, and interest rates creep up, it is the perfect storm for bidding wars again. The number this past month, July 2017, has shown absorption rates at 6 months and below in the Ocean County foot print, from Bayville to Little Egg. Absorption rates are a gauge for how much inventory can be sold in a period of time. To derive to this number it is really simple math. Total active homes divided by last sold in the past 30 days will give you the number of months it will take to sell off that inventory. This is what I have come up with recently:
Berkeley AR 6.26 months
Lacey AR 5.8 months
Waretown AR 5.9
Barnegat AR 4.4
Little Egg Harbor 7.3
What does this mean for you the buyer or seller? 1-5 months is a sellers’ market. 5-6 months is a normal market and anything above 6 months is a buyers’ market.
Bidding wars are imminent. Buyer’s are going above asking price just to win the property. If they weren’t savvy enough to do so, the remaining inventory that they already hand picked is not as promising as that one home that got away from a higher bidder. Although we, the professional Realtors try to give some sound advice during the offer process, there is no guarantee that the advice is taken. This market hasn’t been here since 2005. Of course the pricing isn’t as insane as it was 12 years ago, but the notion of a quick selling market is here again. As rates start to rise slowly and inventory starts to wane, now would be a great time to get off the fence, stop your window shopping, and become a Proud American Home Owner. Make “American Homes Great Again”.
See you at the closing table!!