After a year of declining prices and slower sales in 2011, we’re off to an encouraging start this year. Contract signings are off to a brisk start… at their highest level since 2008, inventory is relatively low, allowing for a better balance between buyers and sellers.
Closings: According to Garden State MLS, a total of 3,904 residential properties closed in Morris County during 2011, down 7% from 2010… far fewer than the 6,600+ units that closed in the mid 2000s. Randolph’s numbers were up 6% from 2010 to 2011, with a total of 202 closed homes last year.
Contracts – A Hopeful Look! Contract signings are a leading indicator of the state of the current market since they show the willingness (or lack of) of buyers to make a commitment to purchase a property. As the numbers below indicate, contract activity in Randolph was up for the past four months, and for five of the past six months. National data shows that pending home sales are at a 19 month high.
PRICES: Average selling prices fell 4.8% in Morris County, and 12.9% in Randolph, bringing the average prices of the areas to $468,600 and $472,900, respectively.
Randolph’s larger decline in average price was partially due to the softening of market for the highest end of the market in Randolph … 2010 saw 8 homes sell for over $1 million, while the highest price paid last year was $938,000 – the first time since 2000 that a home did not sell for over $1 million in Randolph. The recovery in activity shown in the contract data on the previous page, combined with a decline in inventory points to a year that will have prices that are either the same as, or slightly higher than 2011.
OUTLOOK FOR 2012… Although it’s just the start of the year, we welcome the news that contract signings have increased in both Randolph and Morris County. January saw the highest level of signed contracts since January, 2008 in Randolph, and the highest since 2007 in Morris County. Sales increases were due to record low mortgage rates and lower prices, combined with the warm January that we’re all enjoying.
The improving market is part of what is hopefully an improving economy… including lower unemployment rates, and a record year for auto sales – the other big ticket item that economists use to measure the economy. It seems we may be emerging from the worst of the economic downturn.
What does this mean to you? If you’re like most people, your home is your most valuable asset. If you would like to discuss the real estate market and how these numbers relate to you and your home, feel free to call or email. I’d be glad to spend some time chatting about this… regardless of whether you are ready to move. Every home is different, and every financial situation is unique.
As always, if you would like information about anywhere you might want to move in the future or if a family member has a real estate need, feel free to call. I have access to top Realtors in New Jersey, across the country and around the world. I can be reached at 862.432.2771 or by email: andrew@randolphnjhomes.com.
