The median price of a single-family home in Aberdeen increased by 5% in 2013 (from $295,000 in 2012 to $309,950). The median is the price at which 50% of the homes sold for more and 50% sold for less. It’s normally a better indicator than the mathematical average, which can be skewed by a handful of very high (or very low) priced home sales. Interestingly enough, this year the average Aberdeen home price increased by 9% (to $299,290). When the average is lower than the median, it indicates that more lower-priced homes sold.
7% more Aberdeen homes sold in 2013 than in 2012; an increase in sales (i.e., demand) normally predicts higher home prices in the near future. In addition, we also saw a large (24%) decrease in the number of homes listed for sale (i.e., supply); fewer listings also tend to result in higher home prices.
The real estate absorption rate looks at both demand and supply. If you’ve been following my posts you know that a real estate absorption rate of between 5 and 7 months is considered to be a “normal market”, whereas greater than 7 months is a “buyer’s market” and less than 5 months is a “seller’s market”. Aberdeen started the year with an absorption rate of 8.4 months and ended 2013 with a rate of 5.9 months, so we went from a “buyer’s market” into a “normal market” during the year. Next door in Matawan the absorption rate is 5.1 months, which still falls into the “normal market” range.
The average Aberdeen home sold much faster in 2013 than it did in 2012. If a home is sold on its first listing, we measure the days it was on the market (DOM). However, if the listing expires before the home sells, once the home is re-listed we can measure either the DOM for the new listing or the number of cumulative days on the market (CDOM). The CDOM gives a much better idea of how long the home really took to sell. For Aberdeen, the average CDOM went from 108 days in 2012 to 86 days in 2013.
If you’re a Aberdeen home owner, there are lots of things to be happy about: sales are up, listings are down, prices are up, and the absorption rate is much shorter. If you’re thinking of selling your home this year, please let me be one of the REALTORS® you interview to list your home on the market. A decision on “fair market value” for your home should be based on solid data about the current market.
If you’re thinking of buying a home in Aberdeen, you’ll have to plan to spend a more than you would have a year ago. If you’ll need a mortgage, also keep a close eye on mortgage rates, which are expected to rise significantly by the 4th quarter.
If you search online and find a Aberdeen house you really like, remember my advice: DON’T CALL THE LISTING AGENT (even if it’s me). The listing agent works for the Seller, and has a fiduciary responsibility to get the highest price for his/her client. I’d be glad to represent you as a buyer’s agent, and negotiate the lowest price .
Here are all the Aberdeen statistics:
Aberdeen Home Sales, January 1 - December 31
2012 2013 Comment
Sales (Demand) 140 150 7% more homes sold.
Listings (Supply) 98 74 24% fewer homes on market.
Months' Supply 8.4 5.9 Much stronger demand vs.
Note: based on the past 12 months supply.
Median Sale $295,000 $309,950 5% higher median price.
Average Sale $275,178 $299,290 9% higher average price.
Average Listing $288,602 $308,518 7% higher average listing.
Avg Sale/List % 95.3% 97.0% Higher Sales/Listing %.
Avg Cum DOM 108 86 Much shorter avg CDOM
Leonard “Len” Dunikoski, GRI
Diane Turton Realtors – Rumson Office
8 West River Road
Rumson, NJ 07760
(732) 239-0739 (cell) (732) 530-6686 (office)