The Spring 2013 market is off to a vibrant start and I am absolutely physically exhuasted from showing houses to at least 2 groups of buyers, per day, every weekend. It is so hard to imagine that the real estate market in Essex, Morris and Union Counties New Jersey could change so swiftly. Two years ago Realtors and sellers were sweating it out as inventory was piling up and buyers were no where to be found.
The Seller’s Market Begins in Maplewood, South Orange and Millburn, NJ
In just 24 months, most towns have depleted much of their excess inventory turning it from a “buyer’s market” into more of a “seller’s market.” While I have discussed this topic in past posts- this time I refer to the actual “Absorption Rates” for each town.
So what exactly are absorption rates? They are a metric used to calculate the supply (or active homes on the market) and the demand (recent sales) to calculate the current sales rate. Any number below 50% means more homes are selling than coming on the market -i.e. more of a seller’s market. Conversley an absorption rate above 50% means more supply is coming on than sold.
In the areas I serve; Essex, Morris and Union Counties, the pendulum has swung and we are now in a seller’s market. The net effect we expect to see is prices climbing at a steady pace. In a year or two from now we will be in equal disbelief about increased home prices. Please don’t be suprised- cause I will say “told you so.”