Lately I've had quite a few new home buyers state that they thought it was a Buyer's Market in South Jersey. They put in an offer hoping to be able to get the house they wanted at a much lower cost and lost their house because they were outbid. The sellers ended up receiving close to or full asking price for their homes. One of my clients, who did win their bidding war, had to go $10,000 over asking price. The situations I'm describing are not typical of a "Buyer's Market", in fact just the opposite.
We've had plenty of news lately about house sales slowing down and house inventory accumulating. We've heard about prices being reduced and listings expiring. Why then are home buyers still faced with bidding wars in this area?? It all depends on the price range you are looking to purchase within. Affordable homes in good condition are still moving quickly AND with multiple offers. No, they are not receiving the 10 -12 offer bidding wars as seen over the last couple of years, instead they are receiving 2 -5 offers on the property.
I'm going to break down the current inventory into price range so you can see where the activity is and where the homes are starting to sit and/or be reduced, etc for South Jersey. These figures are retrieved from Trend MLS as of today May 8, 2006
Burlington County Real Estate
Current Inventory: 3096 homes available
12 Full Month Sales Average: 567 per month
Inventory Accumulation: 5 Months
Inventory Accumulation by Price Range:
- Up to $300,000
Current Inventory: 1550 homes available
12 Full Month Sales Average: 390 per month
Inventory Accumulation: 3 Months
- $301,000 - $600,000
Current Inventory: 1185 homes available
12 Full Month Sales Average: 152 per month
Inventory Accumulation: 7 Months
- $601,000 +
Current Inventory: 361 homes available
12 Full Month Sales Average: 23 per month
Inventory Accumulation: 15 Months
As you can see just from the Burlington County market activity homes under $300,000 are still in a seller's market while the homes over $600,000 are in a strong buyer's market. The homes between $300,000 and $600,000 are in the middle (what is often referred to as a balanced market), and depending on price, condition and location, some will experience multiple offers while others will sit on the market and have price reductions.
Camden County Real Estate
Current Inventory: 2977 homes available
12 Full Month Sales Average: 611 per month
Inventory Accumulation: 4 Months
Inventory Accumulation by Price Range:
- Up to $300,000
Current Inventory: 2105 homes available
12 Full Month Sales Average: 516 per month
Inventory Accumulation: 4 Months
- $301,000 - $600,000
Current Inventory: 740 homes available
12 Full Month Sales Average: 87 per month
Inventory Accumulation: 8 Months
- $601,000 +
Current Inventory: 132 homes available
12 Full Month Sales Average: 8 per month
Inventory Accumulation: 16 Months
Gloucester County Real Estate
Current Inventory: 1772 homes available
12 Full Month Sales Average: 313 per month
Inventory Accumulation: 5 Months
Inventory Accumulation by Price Range:
- Up to $300,000
Current Inventory: 1085 homes available
12 Full Month Sales Average: 254 per month
Inventory Accumulation: 4 Months
- $301,000 - $600,000
Current Inventory: 576 homes available
12 Full Month Sales Average: 61 per month
Inventory Accumulation: 9 Months
- $601,000 +
Current Inventory: 111 homes available
12 Full Month Sales Average: 2 per month
Inventory Accumulation: 55 Months
Both Camden and Gloucester Counties are showing similar scenarios to the activity in Burlington County. Regardless if you are a home buyer or home seller, when you are entering the market it is extremely important to know what to expect in the price range you intend to buy or sell. The South Jersey real estate market is still very strong and competitive in the lower price ranges, which gives the seller's the upper hand. In the upper price range, it is slow and buyers have the negotiating power with a much wider selection of homes to choose from.
--Roxanne