Only 4 Fair Haven homes sold (closed) in October, so there wasn’t much of a change in our year-to-date real estate market statistics. All 4 of the key, objective real estate indicators are still predicting higher prices for Fair Haven homes in the near future (see last month’s post if you’re not familiar with the significance of the number of home sales, the number of listings, the real estate absorption rate and the median selling price). Here are the numbers; positive news for home buyers would have been highlighted in underlined italic font but as was the case last month, this month’s statistics don’t have any good news for buyers:
Fair Haven Single-Family Home Sales, January 1 – October 31
2014 2015 Comment
Sales 80 108 35% more homes sold.
Listings/Month* 46 37 20% fewer homes on market.
Months Supply* 4.5 3.5 Stronger demand vs. supply.
Median Sale $692,000 $727,500 5% higher median sales price.
*based on the previous 12 months of listings
If you’ve been thinking of buying a home in Fair Haven, you’ve got several decisions to make. Do you buy something in the next few months or do you wait until the spring? Do you buy at current market prices or do you wait and hope prices will be more attractive next year? Do you think a rise in future mortgage rates will have a positive or negative effect on your buying opportunities? Do you decide you can’t afford to buy a house in Fair Haven and need some advice about where to look in other nearby towns?
Fewer homes will be on the market in the next 3 or 4 months and fewer buyers will be looking. Although you’ll have fewer choices, you’ll also have less competition from other home buyers.
In addition, the homes that are on the market this time of year tend to be owned by motivated sellers who’ll be more willing to negotiate. Yes, current Fair Haven real estate market prices are high, but the statistical indicators don’t give any indication that prices will decrease (or even plateau) in the near future. Fair Haven home prices may very well increase another 5% in 2016.
If you’re planning to take out a mortgage and if mortgage interest rates rise as predicted, plan on either a larger monthly mortgage payment or a smaller mortgage (i.e., you’ll have to look at houses in a lower price range). Of course you can hope that home sellers will lower their asking prices to keep more buyers interested in their homes, but hope is never a good strategy. On the other hand, if you intend to pay cash for your new home, you’ll certainly have less competition from other potential buyers.
I’d hate to see you give up on your hopes of living in Fair Haven, but if you decide you can’t afford the kind of Fair Haven house you’d like to have, let’s talk about several nearby Monmouth County towns where the median prices are lower.
If you do decide to put off buying until the spring, don’t stop looking at the new listings. If there’s a new listing that’s priced at or below the market, it won’t last long so don’t miss a chance to take a look at it. If you let me know what you’re looking for and in what price range, I’ll set up the computer to automatically alert you every time a new home comes on the market. If you’re out of state or can’t come for a visit in person, I’ll preview the homes for you, take photos and/or videos and send them to you.
Fair Haven is a great place to live, and if you want to move here, let’s work together and find the right house for you.
(732) 239-0739 (cell) (732) 530-6686 (office)