Middlesex County NJ Real Estate Statistics -Yearly Trending & Yearly Commentary - 2012
1- 2012 – Middlesex County, NJ Yearly Real Estate Commentary.
Reporting period: 2012(January 01/01/2012 - December 12/31/2012)
Source data is from the prof. Middlesex County Multiple Listing System database.
Calculated on 01/20/2013.
Includes all geographic markets in Middlesex County, NJ and all types of single family residential homes only (i.e 2 bedroom house, 3 bedroom house, etc…) but do not include condos, townhouses, adult commun., commercial real estate....
Please read our Disclaimer.
Most experts are agreeing that 2011-2012 have become the bottom years for the 6 years long down trend and we are 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…).
In our opinion Middlesex County, NJ is following the national Real Estate trend
We have changed the Real Estate Barometer last year (July 2012) from a “Strong Buyer’s Market” to a “Buyer’s Market” after seeing the Days of Inventory or Absorption Rate decrease and other statistics we follow aligning to confirm a switch to a more balanced market.
So what were some of the highlights for 2012?
2012, especially the second half of 2012 has seen the lowest Inventory since 2006. This simply means that there are fewer homes on the market (as captured in the Middlesex County MLS).
The number of homes sold has also increased versus 2011 and 2010 meaning more people have been buying homes in 2012 in Middlesex County, NJ.
Home Prices are stabilizing, essentially flat versus 2011 both from a Mean and Median perspectives.
The Sold Price Vs Asking Price has increased versus 2011 from 93.97% to 94.35%. This statistics helps us to understand who has the upper hand (Buyers or Sellers). The higher this number and the more in control Sellers are.
At the zip code level we are seeing neighborhoods that have increased in price last year. For example Metuchen average home prices in 2012 was higher than in 2011. North Edison 2 and 3 bedrooms average homes prices were also higher in 2012 versus 2011.
Only time will tell if indeed 2011/2012 were the bottom years for our local real estate. And on our side we will keep on reporting statistical information on a monthly basis has we have done it for many years.
A few things to watch in 2013 that are going to affect our local real estate markets (not in order of importance):
1- Job creation & economic growth in New Jersey
2- Interest Rates increase (the party might be over soon...)
3- Shadow inventory, short sales and foreclosures effect locally
2- 2006 - 2012 – Middlesex County, NJ Trending Real Estate Graphs