New Jersey Real Estate Information Archive

As over half of 2010 is complete, many homeowners in Westfield are wondering if the real estate market has stabilized, and how their homes have held their value in the past 12 months, as many economists have declared an end to the recession.

While keeping in mind that the values and market activity varies tremendously from town to town and neighborhood to neighborhood, a look at the averages seems to confirm what we predicted for 2010 in our article at the start of the year. Here is an excerpt from that article when asked what we thought would happen in 2010:

"No one really knows for sure. All signs point to a very slow recovery, and most likely a flat year for prices and sales. Prices should remain stable, and show slight seasonal increases or decreases, if the data trends hold."

Here is that complete article for Westfield NJ Real Estate 2009 vs 2008

While the average prices increased about 12 percent as you will see below, I want to mention that in the first quarter of 2009, we saw nearly a complete freeze on residential real estate transactions, which caused prices to plummet in that 3 month period. Prices dropped about 10 percent in the first quarter of 2009 alone, so the year over year 12 percent increase to 2010 levels is merely a recovery of that rapid decline.

Thus, our prediction of a relatively flat pricing environment for 2010 seems to be accurate, though homes did sell much more quickly, due to historically low interest rates and the first time home buyer tax credit that expired in June.

Here is a summary of the data year over year comparison of 2009 to 2010 in the Westfield NJ Real Estate Market.

2009 Through July 31

Closed Sales: 161

New Listings: 1091

Average Sales Price: $686,597

Average Days on Market: 83

Sale Price to List Price Ratio: 95 percent

 2010 Through July 31

Closed Sales: 165 (relatively flat year over year)

**New Listings: 1361 (an increase of 25 percent from prior year)**

Average Sales Price: $773,577 (an increase of 12 percent year over year, but remember there was a steep drop in Q1 2009 of neartly 10%)

Average Days on Market: 54 (dropped nearly 30 days!)

Sale Price to List Price Ratio: 96 percent

What this means for Westfield NJ homeowners is very simple. It appears that homes in Westfield on average have held their value over the past year.

I will caution anyone thinking of selling, however, that this report is not a substitue for a detailed market analysis, as some price ranges outperformed others. Homes under $600,000 for example went up in value with higher demand, while higher priced homes have performed quite differently. These figures are just averages. For a more detailed report, homeowners can check out www.WestfieldHomeSellers.com for a more detailed market snapshot.

Sean Carroll is a Realtor with the Westfield team of Keller Williams Realty, and resides in Westfield. He can be reached via email at Sean@TeamCarrollNJ.com

We are now 1 month into the new year, and compared to January of 2009, this year so far has been much more active in terms of buyer activity in the marketplace. One year ago, we were right in the thick of bank takeovers, massive Wall Street layoffs, and an unprecedented government stimulus package, part of which broadened and extended a first time homebuyer tax credit, which helped our local market tremendously in the 2nd through 4th quarters.

This year, while we are still battling 10% unemployment, and the effects of a deep recession, the real estate market in Westfield has shown signs that the bottom has passed, and sales remain steady or slightly improved year over year, but at lower prices on average. However, sales of starter homes ($500,000 and under) are selling extremely fast and have actually increased in price slightly in the past 6 months. When priced right, these homes are selling quickly and often with multiple offers, and this has led to a gradual loosening of the market in the upper ranges since people are starting to "move up" again if their jobs and income are secure.

Here is a summary of the year over year comparison of 2008 to 2009 in the Westfield NJ Real Estate Market.

2008

Closed Sales: 288

New Listings: 1446

Average Sales Price: $773,745

Average Days on Market: 76

Sale Price to List Price Ratio: 96 percent

2009

Closed Sales: 305 (an increase of 6 percent year over year)

**New Listings: 2542 (an increase of 75 percent from prior year)**

Average Sales Price: $693,463 (a decrease of 10 percent year over year)

Average Days on Market: 67

Sale Price to List Price Ratio: 96 percent

When examining these numbers, it is easy to see why the average sales price dropped 10 percent, as there was a surge in new listings on the market, especially in the first and second quarter, most likely attributed to the job losses in the financial sector in New York City, as many Westfield homeowners are employed by those institutions, and may have needed to sell their home due to job loss or relocation. As the year progressed, sales increased, and new listings slowed, which balanced the market somewhat, but not before prices dropped 10 percent.

What's Going to Happen in 2010?

No one really knows for sure. All signs point to a very slow recovery, and most likely a flat year for prices and sales. Prices should remain stable, and show slight seasonal increases or decreases, if the data trends hold.

The first time homebuyer tax credit is set to expire at the end of the 2nd quarter. If December sales were any indication, the sales of starter homes at the end of 2010 should decline, as buyers rush to get under contract before then, as they did in November of 2009 when the prior credit was originally set to expire. If the first time homebuyers don't buy at the same rate as they have been, either due to the credit expiring, or rising interest rates, there will likely be a slowdown in how quickly the unsold inventory gets scooped up. This will stifle price appreciation in the short term.

If jobs are created more rapidly, and interest rates stay favorable, one would expect homes to sell at a faster clip, demand to pick up, and prices to rise gradually. Only time will tell.

Sean Carroll is Realtor and Team Leader of Team Carroll at RE/MAX Supreme. To reach Sean for comment or questions, or for more information about the Westfield NJ Housing Market, or local real estate information, logon to www.TeamCarrollNJ.com. Or contact Sean at Sean@TeamCarrollNJ.com