After reviewing contract signings and absorption rates, the last… and maybe most important measurement of the real estate market is average selling prices.
Keep in mind that these prices are just averages, and especially in this market we need take foreclosures, short sales and other factors into the equation. As they say “your mileage may vary.”
Worth Noting:
- The average is based on a far smaller number of closings than in the height of the real estate market… Morris County overall sales are down from over 6,642 in 2004 to 4,254 sales this year – an improvement from the 3,906 total in 2008, but still down considerably. Because of the reduced number of sales, used in the average, each sale… for better or worse… carries more weight. Randolph follows a similar pattern; down from 375 to 190 last year. (See charts below).
- Sales of homes over $1 million were up considerably. Morris County saw a 37.5% boost to a total of 225 homes (still off the 439 sold in 2007). Randolph was up from 3 to 8 homes. Although this does not seem like a big jump, it has nearly tripled from 2009 to last year.
- The increase in $1 million+ homes has a larger weight in the average due to the smaller number of overall home sales.
CLICK ON GRAPHS TO ENLARGE:
The Numbers Please…
- According to Garden State Multiple Listing data, the average price of a home sold in Morris County stood at $493,200 last year, an increase of 5.2% over calendar year 2009.
- Randolph saw a similar trend with a 2010 average of $543,300, up 6.5% from the previous year.
Looking Forward
The single largest factor in the recovery of the real estate market, and the economy as a whole is consumer confidence, which is returning slowly. Hopefully unemployment will improve, enabling people to be willing and able to move in the coming year and beyond.
As I said at beginning of this entry… these are just averages If you have questions about your specific home or a real estate market nearby or anywhere across the country, feel free to contact me directly at 862.432.2771 or at andrew.mensch@cbmoves.com.
