If you own a home in Rahway, or if you want to own a home in Rahway, this is the place to be for information about real estate values this spring.
Here’s what’s been happening lately.
Inventory:
- 27 homes were sold in Rahway in August, compared to the twelve month average of 28.5 homes sold per month.
- 103 homes were offered for sale in Rahway in August- compared to the 12 month average of 125.3.
- As inventory shrinks, demand for homes usually increases. This can help to raise prices and/or shorten the length of time homes are on the market.
Realtors use an analysis called Months of Inventory to evaluate the real estate market. The Months of Inventory is equal to how long it would take to sell the existing inventory if no new houses were put on the market. When the Months of Inventory is below four months, realtors call it a seller’s market because the supply is relatively low so sellers have a stronger position in negotiations between a buyer and a seller. When the Months of Inventory is above seven months, realtors call it a buyer’s market because the supply is relatively high and buyers have a stronger position in negotiations. Months of Inventory between four and seven is considered a normal market with a good balance of buyers and sellers.
Rahway currently has 4.68 months of inventory available which means we are experiencing a seller’s market. This means there are fewer homes available than there are buyers. Typically, this results in faster sales and higher sales prices.
Prices:
- Average sale price in Rahway in August was $298,628- compared to the 12 month average of $274,856.
- Average list price in Rahway in August was $308,280- compared to the 12 month average of $291,774.
- Consumer confidence helps increase prices. Rahway has had a slow but steady improvement in prices for several years.
The important thing to note about the graph is not the variability but rather the overall long term trend which is represented by the straight blue and red lines which show a healthy increase in home list prices and sale prices in Rahway over the past seven years.
Days on Market:
- In August, the average sold home in Rahway was on the market for 56 days – compared to a 12 month average of 52.7 days.
- The solid blue trend line on this graph shows that Rahway’s homes continue to sell faster each month.
What this means for buyers:
- Be educated. Learn what kind of home you want. Decide with your family members what you need in a home and what you want in a home.
- Be informed. Spend some time getting to know the inventory. Learn what homes look like in your price range. Learn what home features you can afford.
- Be ready. Have your pre-approval ready so that you can act quickly when you find your perfect home.
What this means for sellers:
- If you’re on the fence about selling your home, this may be the perfect opportunity to get the most money in the shortest amount of time.
- Even in a shrinking inventory situation, you’re still competing with other homes on the market. View the other homes that are offered for sale and make sure your home is the best one in its price range.
- Make your home available for potential buyers.