Real Estate Professionals judge the strength of a real estate market based upon the Months of Supply in the area. This number tells you how many months it would take for all the current homes for sale on the market to sell, based upon the rate of sales in the past.
A Months of Supply of 5 months is considered average – buyers and sellers are about equal in the area and homes are being bought at about the same rate that they are being put on the market.
A Months of Supply of less than 5 months is what real estate professionals often call a “seller’s market.” This means that there are more buyers than sellers in the area and homes are selling quicker than they are being put on the market. Typically, this increases prices.
A Months of Supply of greater than 5 months is what real estate professionals call a “buyer’s market.” This means that there are more sellers than buyers in the area and homes are sitting unsold for a while. Typically, this decreases prices.
How is your town doing? Here’s the latest data:
What does all this mean to you as a buyer or a seller?
The only town where there is a true seller’s market is Fanwood. There are more buyers looking to buy homes in Fanwood than there are homes for sale. Buyers are experiencing competition.
Mountainside is nearly a normal market with only slightly more sellers than buyers.
Garwood and Westfield had seller’s markets earlier in the year, but increased inventory without a corresponding increase in buyers has resulted in a buyer’s market.
The other towns in Union County are all experiencing strong buyer’s market. Homes there are priced low and sellers are experiencing competition.
For more information on how this affects you, contact us for a complimentary consultation.