By Wendy Trager, GRI
Real Estate Snapshot November 16, 2012
2013 Property Taxes and Hurricane Sandy
Many property taxpayers are faced with home value assessments that are no longer accurate due to the major property damage caused by hurricane Sandy. Normally, property value is assessed on the condition of the lot and the improvements (buildings) as of October 1st of the previous year; however, there is a stipulation to the state law regarding homes destroyed by a storm between October 1st and December 31st. The property assessment may be reduced to reflect the depreciation in value as long as the landowner provides their municipal assessor with notice prior to January 10, 2013. The assessor must then base the assessed value of the property according to its condition as of January 1, 2013. If your property has incurred damage, don’t miss the January 10, 2013 deadline to notify your municipal assessor!
94 Single Family homes are currently listed for sale in the Monmouth/Ocean MLS in Aberdeen, NJ. The Aberdeen market starts with a complete tear-down short-sale Ranch listed in the $70,000 range and ends at a 4 Bedroom, 2 ½ Bath with Full Basement and 2-Car Garage New Construction Strathmore Colonial listed in the high $500,000 range.
17 Single Family homes were sold in Aberdeen in October ranging from a $107,000 Cliffwood Beach 3 Bedroom, 1 ½ Bath with Full Basement Cape to a $360,000 4 Bedroom, 2 ½ Bath with Full Basement and 2-Car Garage Strathmore Split-Level.
The Market Absorption Rate for Aberdeen is 8.6 months.
75 Single Family homes are currently listed for sale in the Monmouth/Ocean MLS in Aberdeen, NJ. The Hazlet market begins with a 2 Bedroom, 2 Bath Cape priced in the $100,000 range and ends in the high $600,000 range for a 5 Bedroom, 4 Bath with Full Finished Basement and 2-Car Garage Colonial.
18 Single Family homes were sold in Hazlet in October ranging from a $150,000 3 Bedroom, 1 Bath with Full Basement and 1-Car Garage Ranch to a $375,000 4 Bedroom, 2 ½ Bath with Partial Basement and 2-Car Garage Split-Level.
The Market Absorption rate for Hazlet is 6.8 months.
31 Single Family homes are currently listed for sale in the Monmouth/Ocean MLS in Keyport, NJ. The Keyport market starts with a 2 Bedroom, 1 Bath Ranch in the $150,000 range and ends at a 3 Bedroom, 2 ½ Bath Colonial with a Full Walk-Out Basement priced in the low $400,000 range.
4 Single Family homes were sold in Keyport in October beginning with a $182,000 3 Bedroom, 1 ½ Bath with Full Basement Colonial to a $340,000 3 Bedroom, 2 ½ Bath with Full Basement and 1-Car Garage Custom Colonial home.
The Market Absorption rate for Keyport is 8.7 months.
53 Single Family homes are currently for sale in the Monmouth/Ocean MLS in Matawan, NJ. The Matawan market starts with a 3 Bedroom, 1 ½ Bath Colonial in Foreclosure priced in the high $120,000 range and ends at a 4 Bedroom, 4 ½ Bath possible mother/daughter with Full Finished Walk-Out Basement and 2-Car Garage in the $500,000 range.
4 Single Family homes were sold in Matawan during October beginning with a $270,000 4 Bedroom, 2 ½ Bath with 2-Car Garage Freneau Bi-Level and ending
with a $415,000 4 Bedroom, 3 Bath with Full Basement Custom Colonial.
The Market Absorption rate for Matawan is 10.6 months.
Days on Market (DOM) vs. Market Absorption Rate
Days on Market (DOM)
Most MLS systems calculate the average DOM using the average days on market for the listings that actually sold. The problem I have with this method is that it
leaves out homes that were withdrawn, listings that expired, listings that were
withdrawn for a day and then re-listed to restart the clock or by another agent,
or those that were never put in the MLS until they sold (such as new construction where they might list only one home in a subdivision, but actually have 15 or more for sale). All of these factors impact the reported DOM. A more accurate way to determine the number of days on market is by using the market absorption rate method.
Market Absorption Rate
The absorption rate is the rate at which available homes are sold in a specific real estate market during a given time period (I use 1 year). It is calculated by dividing the total number of available homes by the average number of sales per month. The absorption rate shows how long it will take the market to “soak-up” the supply of homes currently for sale. A high absorption rate usually indicates a decrease in the supply of available homes. This increases the odds that a home will sell in a shorter period of time. Conversely, a low absorption rate indicates an abundance of homes for sale, thereby increasing the odds that the home will take a longer period of time to sell.
If all this sounds to you like the “Waa Waa Waa Waa” of any adult in a Peanuts cartoon; let me explain it a different way. A homeowner listing their home today at current market value will have to wait (statistically) 258 days for their home to sell in Aberdeen, 175 days to sell in Hazlet, 266 days to sell in Keyport and 318 days in Matawan. Houses listed over current market value will take even longer to sell.
Using the MLS DOM method of calculation Aberdeen’s DOM would be 114 days, Keyport’s DOM would be 70 days Hazlet’s would be 77 days and Matawan’s DOM would be 96 days. These numbers are drastically different numbers than the ones I used above. Very frustrating for a homeowner thinking their home will sell in 114 days and it’s nearing 200+ days!
Attached are the Sold Listings Reports for October 2012 which show all the Single Family Homes that sold in Aberdeen, Hazlet, Keyport and Matawan in September. I have adjusted the Days on Market (DOM) and the original listing price to reflect when a home initially came to market.
Market value is determined by what buyers are willing to pay in today’s market. Similar to how prices are determined for stocks. Other factors such as the location (busy street, cul-de-sac) and condition of the home also influence market value.
Feel free to contact me at info@WendyTragerRealtor.com with any questions you may have. If you would like to see listings go to www.WendyTragerRealtor.com and use the Property Search (no strings attached) or you can email me. If you would like to see information on other towns in Monmouth/Ocean or Middlesex counties contact me.