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Middlesex County Real Estate Barometer

 

Middlesex County Real Estate Barometer

Strong Buyer's Market Buyer's Market Neutral Market Seller's Market Strong Seller's Market

 

Monitoring the local Middlesex County NJ real estate market and estimating the current overall status of the market has a lot to do with DOI (Days of Inventory) or Absorption Rate. Days of Inventory (DOI) in January is 244 days. It means it would take about 8 months to sell all existing inventory. A market with more than 6 months supply typically qualify as a Buyer's market. A market with less than 6 months of supply would usually qualify as a seller's market. DOI does not take into consideration the NJ shadow inventory.

 

Experts are now agreeing that 2012 has become the bottom year and we are clearly now on the road to Real Estate recovery. Real estate is local and not all local markets are reacting and trending identically over the same period of time. Also various segments of the market typically behave differently (i.e rentals versus purchase, new construction versus existing homes, single family versus multiple dwellings, etc…).

We have changed the Barometer from a “Strong Buyer’s Market” to a “Buyer’s Market” last July (07/2012) for the first time since 2006 (Real Estate bubble) as most local Middlesex county statistics we follow have started aligning to confirm the way to a more balanced market.


Simply put, DOI represents the number of days or months it would take to sell the current inventory. For example if we have during a specific month 500 homes for sale in Middlesex County (current inventory) and 50 homes were sold that month, it means it would take 10 months to sale all homes.

A neutral market has typically a DOI around 6 months.
Less than 6 months typically characterizes a seller's market.
More than 6 months a buyer's market. 

 

Seasonal effect and other "noise" should be taking into consideration when using this type of indicator.

 

See our Middlesex county Real Estate Statistics section to find out the current story on the DOI in Middlesex County NJ.

 

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