On September 23, 2010 the NAR (National Association of Realtors) released the national “Existing Home Sales Report.” At the same time, Jeffrey Otteau, President, The Otteau Valuation Group, released NJ statistics. All statistics are quoted from these two organizations.
Month over month:
Nationally: August 2010 sales increased 7.6% over July 2010 sales.
Statewide in NJ: statistics have not yet been released
Northeast: August 2010 sales increased 7.9% over July 2010 sales.
Year over year:
Nationally: August 2010 sales were 19% below sales in August 2009.
Statewide in NJ: August 2010 contract sales were 25% below contract sales in August 2009. This decrease is 2 points better than the June and July -27% decreases. Not dramatically better, but not plummeting!
When looking at year over year statistics, it is important to remember that the First-Time Homebuyers tax credit stimulus was in place at that time in 2009, and it was set to expire on November 30th, 2009. This artificially pushed buyers into a buying mode perhaps earlier than they would have normally bought in order to qualify for the credit. In August 2010, there was no stimulus- just the market working on correcting itself back to normal levels. (The extension of the expiration date of the homebuyer’s credit and the enlargement of its scope will continue to skew the numbers for several more months until the free market can correct itself.)
Frankly, the numbers are not where they need to be to strongly indicate a comeback in the market. However, they do indicate that it is still an advantageous time to buy based on the fact that interest rates continue to be low making it cheaper to buy than a few years ago, high inventory levels offer a big selection (NJ is still looking at a 13.4 months of supply vs. a normal of 5-6 months, and housing prices are still low).
If you are a seller, it is still crucial to price your home correctly at the outset. With so much inventory available, an unrealistic initial list price will lead to your home being overlooked, stale and unsold.
There is no crystal ball to project the real estate performance over the next few months, but adherence to the basics and knowledge of your town’s market trends will continue to be key in making the best decisions. Call Turpin to help!
Posted by: 
Mary Jane Benedetto
