Cranford NJ Real Estate Market Report – October 27, 2009

 

In this report, we’ve included the comparison of 3rd quarter 2008 to 3rd quarter 2009 to see how Cranford’s market is performing relative to a year ago.

 

Here are the raw numbers:

 

3rd Quarter 2009

 

Closed Sales: 74

Average Sales Price: $433,925

Average Days on Market: 67

Sale Price to List Price Ratio: 96 percent

 

3rd Quarter 2008

 

Closed Sales: 60

Average Sales Price: $444,211

Average Days on Market: 70

Sale Price to List Price Ratio: 96.7 percent

 

So what does this mean for homeowners and people considering a home purchase in Cranford? Well, quite simply it looks like the market is considerably more active in Q3 2009 than one year ago. The number of transactions increased by 23 percent, and the average sales price remained relatively stable, with a decline of only 2.4 percent. This shows signs of a very healthy real estate sales market, as with increased sales and decreased inventory, it has kept prices from further declining.

 

This increase in number of transactions can be likely attributed to the first time homebuyer $8000 tax credit that is set to expire on November 30, 2009. Many first time homebuyers decided to make a purchase this year due to this incentive. Also, mortgage financing became less restrictive than a year ago during the worst of the financial market challenges. Also, very low interest rates in the 2nd and 3rd quarters of 2009, helped improve affordability and purchasing power of buyers.

 

Congress is currently debating whether or not to extend/expand the first time homebuyer tax credit, and this decision will likely have a sizable affect on the residential real estate market. If they extend or expand the credit, sales are likely to remain strong. If the credit expires, it may cause a short term slowdown in sales activity until more job creation spurs more home purchases.

 

Sean Carroll is Team Leader of “Team Carroll” at RE/MAX Classic Group, and can be reached via phone at 908-376-1569, by email at Sean@TeamCarrollNJ.com,  or via the web at www.TeamCarrollNJ.com.