Remember real estate is local, really local.  Even though the overall numbers in Monmouth County may show one thing there will always be pocket of local real estate activity that may not show the same as the larger area.

Having said that, I will show hear some stats from my local MLS, the Monmouth Ocean MLS for all of Monmouth County.  For statistics for a smaller area, contact me through my website at NorthernMonmouthHomes.com and will will provide you stats for more specific areas.

Here is a graph showing the number of homes sales per month for the last year.  As you can see it doesn’t look that much different than last year.  The real estate market is cylical and the spring summer cycle is generally an up cycle.  So it is premature to think that because we are having increasing homes it automatically means we have hit bottom.

Notice that in July ‘08 the homes sales for that month were 449 and in July ‘09 there were 471.  Not much of an improvement.

Let’s look at the inventory of homes on the market.  Again the inventory rises and falls in seasonal cycles.

Number of homes available in Monmouth County in July ‘08 was 4603 and in July ‘09 it is 4637.

We all hope the bottom is near, but unfortunately the signs are not there yet.   To make things worse there are likely more foreclosures that will hit the market in the coming months increasing inventory and effecting prices negatively.

All is not glum, however, house are still selling.  In Monmouth County, as we saw in the first graph, hundreds of houses a month are selling.  If you have a house to sell you need a real estate agent who knows how to get your house sold in any market.  Don’t take chances by just picking any agent you come across, choose carefully.

Monmouth County NJ - Inventory vs Sales

Comparing the fourth quarter of 2008 with the fourth quarter of 2007 shows average days on market is slightly higher than this time last year.  Inventory is slightly higher than this quarter last year and number of sales are significantly lower.  Median home prices have also declined, by about 10% in the last year.

2008 vs 2007 Sales Compared

We are currently at almost 17 months of inventory. This means that at the current rate of sales it would take 17 months to sell off the current inventory.  We are not at the bottom yet. 

For a detailed analysis of your town, contact me.

Sales are on the decline after being on the rise for the first half of the year, this is a normal seasonal trend, but shows no sign of a market turn around.

Days on marking is hovering around 94 and we are currently at 14 months inventory. This means that at the current rate of sales it would take 14 months to sell off the current inventory.

The conclusion is that prices are still coming down, so if you are planning to buy this is a great time because interest rates are also low.

If you have to sell, you will need your home to be in good condition and at a lower price than the competition.

Call me and I will help you figure it all out and get the best price in today’s market in the least amount of time, with the least amount of hassle.

*Data is compiled from Monmouth Ocean MLS.

New Jersey Realty Transfer Fee Calculator

First the good news: The number of home sales in Monmouth County has been steadily rising throughout the first half of 2008, but sales still lag behind those for the previous 6 months.  Even so, this is still good news.  We need sales to increase to reduce supply.

In addition, the Days on Market of houses that are selling has gone down slightly.  This could be related to a number of factors including:  more realistic pricing, and/or more buyers who are motivated to buy.

The bad news is that prices are still declining and inventory is still rising so the competition is increasing rapidly.  Only the homes with the best value are selling.  Buyers want more for their money (more features, more space, better condition).  If you are a seller you need to price your house so it is giving the buyer more than the comparable houses, for the same money, or if both houses are equal, your price needs to be lower to get the buyer to see value and choose your home.

Current inventory is the highest since August 2006, a staggering 4900 single family homes on the market in Monmouth County as of June 30, 2008.

Buyers are in a market of opportunity, but it won’t last forever.  With interest rates low and prices down, now is the time to buy.  When rates go up, the window of opportunity will close for many buyers.

Remember, if you want a copy of my market report for your town or would like a printable copy of these charts contact me through my agent website (link above.)

Data is complied from the Monmouth Ocean MLS. 

• Being forced to sell their house in a down market, either because of missing payments, facing foreclosure, or they have been transferred and have been unable to sell their house for what is owed on it.
• Their house that needs extensive repairs and cannot sell for enough to cover the leins on the property.

I have had much training in short sales from the perspective of an investor who is buying the property direct from the homeowner and helping negotiate with the bank for the short sale.

A homeowner will get a better price for their house (and ultimately have a better chance that the bank will accept.) if they list it with a real estate agent and get a retail buyer. Someone who is buying a home will always be able to pay more than an investor who must include his profit and expenses in his offer price.

So, I am endeavoring to get as much training in handling short sales as possible.

The class I took was mostly what I already knew but I did get a few valuable tips and the reassurance that I have the knowledge to handle these types of transactions for my clients as an agent.

This Tuesday, there will be a lender giving a short sale class at our real estate office. I will periodically post tips for homeowners facing a short sale here, so keep watch for them.

So, if you know anyone in this situation, please refer them to me.

To do a do-it-yourself home energy audit visit this link at the Energy Star website:
http://www.energystar.gov/index.cfm?fuseaction=home_energy_yardstick.showStep2

Here is another evaluation your can do:
http://www.njcleanenergy.com/residential/tools-and-resources/home-energy-analysis/home-energy-analysis-0

Home energy audits are becoming part of the buyer’s standard home inspections. Act now to prepare your home for this important inspection. If your home has a good energy score you can use this as a benefit of buying your home over the competition.

Why do people buy a house? Unless they are buying investment property, they are buying a place to live. Yes, a house will make you money from future appreciation, but that is not the primary reason to buy a home. Can you loose money? Well yes, if you are forced to sell in a declining market that declined below what you paid for the house. But most people will just stay put until the next up cycle.

Here’s what Gary Keller, co-founder and chairman of Keller Williams Realty has to say about waiting out the current market (from This Week @ KW):

“First, residential real estate is not a national market product — it is a local one. To say from a national position that this is either a good time or a bad time to buy real estate is like saying the national forecast for the U.S. today is 92 degrees — it is a useless and irrelevant perspective. What is happening in your local market is all that matters.Second, trying to predict when it is a good time to buy, or not, means you’re trying to time the market. Staying on the sidelines is the surest way for most people to never time anything correctly.

Cramer’s remarks might cause buyers to think they should wait to buy a house as Gary is saying. In our area, there are lots of good buys and a lot of houses that are still over priced. Buyers should find a great real estate agent and work with them to help them distinguish the deals from the duds and guide them through making offers and getting them accepted.