the Resourceful Realtor

(Please note: all figures for past years indicate year-end totals unless otherwise indicated.)

Sales in Rumson for the first 3 quarters of 2008 have been sluggish relative to the same period last year with unit sales down 32%. For last year during the same period, 94 homes were sold.  It's clear that buyers have not been feeling the need to take action.  For some this is because they are unable to move forward with a purchase until they've sold their current home.  For others, the uncertainty in all markets has kept them on the sidelines until they're feeling more comfortable making such a large commitment to their future.  Still others are not convinced that the downward pressure on prices has finished its work: some are predicting this trend will continue well into mid-2009.  Encouragingly, October closed sales were strong but Rumson is on pace to still close about 25% under last year in overall unit sales for the year.

With less demand there has been a strong downward pressure on prices with average sales price down almost 10% since last year. 

On a more positive note the gap between asking and selling price has held steady for the past three years at about 7.25% -- whatever added leverage buyers have realized over the past few years, further negotiating strength is not something they've gained.  What's important to note here is that many who have been trying to sell have been unsuccessful due to their inability or unwillingness to price the home according to the current market.  Buyers are less frequently "low-balling" an overpriced property, and more frequently making offers on homes that are relatively well-priced.  The fact that the differential has not changed that much in the past few years would indicate that this aspect of buyer behavior remains strong: buyers are buying homes that are priced correctly. 

Advice to sellers: Clearly, the homeowners who sell successfully are addressing price and providing some but not excessive negotiating room. Its never been more important to understand the market, be educated about its current condition: what was true even a few months ago may no longer reflect reality.  Also important: if you are planning to make a purchase after your sale, be mindful of the financial advantage you will have as a buyer.  To focus on the "spread" between those transactions is often more helpful than to fixate on actual prices... i.e. you may be getting less on your sale but you'll likely be paying less on your purchase.  Please call (732-212-0440 x212) or email me to discuss selling a property in Rumson in this current environment. 

(Advice to buyers: it's important to understand the specific market you're buying in, be very familiar with direct comparables, and to put together a strong offer... many buyers right now are throwing numbers out and not formulating a real offer.  Call me to discuss.)

www.thomasmccormack.com   732-212-0440 x212   tom@thomasmccormack.com