May 5, 2014 at 3:26 PM
SUMMIT, NJ - The Summit real estate market is very active this Spring, with inventory dropping about 23% from comparable 2013 levels. Several key indicators across the various Summit elementary school neighborhoods highlight hidden growth areas.
According to Maureen Kaelin, Sales Associate at Keller Williams Realty in Summit, "Myriad factors indicate that the real estate market in Summit is very strong in general, and across all school districts."
Sales Price as a percentage of List Price is a key indicator in evaluating the demand in a particular area. Buyers’ willingness to pay more than the asking price for housing in an area reflects both the desirability of the home and it’s location, and the market’s overall perception of value.
An examination of Sales Price / List Price in the Summit market shows increased demand for the 12 months ending April 15, 2014, as compared to the same prior 12 months. Brayton and Washington areas are showing greatest increase in demand. with Washington-area homes most recently selling, on average, just over list price. Overall, all areas are exhibiting great performance.
Sales Price as Percentage of List price – Delta
pct. PE 4/15/13 / pct. PE 4/15/14 / change
95.96% / 98.11% / +2.25%
97.46% / 97.25% / -0.21%
97.69% / 97.55% / -0.14%
95.34% / 96.92% / +1.66%
98.09% / 100.15% / +2.10%
96.88% / 97.17% / +0.31%
Grand Total Average:
96.49% / 97.69% / +1.25%
(GSMLS – Average all residential listings SOLD for 24 months ending 4/15/14)
Days on Market (DOM) is also a strong indicator of demand in any particular residential area, and can be evaluated in terms of average or mean. The Days on Market for a property listing is calculated from the date that the listing is published on the Multiple Listing Service to the date that the property goes under contract. The DOM statistic is also often described as the “age of inventory” for any particular region. Lower DOM are indicative of a large pool of ready, willing and able buyers eager to purchase property in the area.
For the 12 months ending April 15, 2014,, average DOM for Summit residential real estate was approximately 46 days, compared to 63 days in 2013, an improvement of more than 27%. The Jefferson and Washington areas showed the most dramatic reduction in average DOM with improvements of 42% and 40% respectively.
Median DOM also tells a similar story, with Summit median DOM moving from 44.5 days for the period ending April, 2013, to the current median of 23 days. To put this in perspective, according to Realtor.com, the current national median age of inventory is 102 days – thus all areas of Summit are performing extremely well based upon national standards.
Average Days on Market - Delta
avg. DOM PE 4/15/13 / avg. DOM PE 4/15/14 / change
78.08 / 50.23 / -35.66%
51.43 / 44.35 / -13.76%
70.89 / 41.26 / -41.79%
62.28 / 49.36 / -20.74%
65.98 / 39.62 / -39.96%
Grand Total Average:
63.41 / 45.93 / -27.57%
(GSMLS - all residential listings in "S", “S” or "UC" status for 24 months ending 4/15/14)
Median Days on Market - Delta
med. DOM PE 4/15/13 / med. DOM PE 4/15/14 / change
53.50 / 22.00 / -58.88%
25.00 / 32.00 / 28.00%
58.50 / 24.00 / -58.97%
49.00 / 27.00 / -44.90%
46.00 / 17.00 / -63.04%
Grand Total Median:
44.50 / 23.00 / -48.31%
(GSMLS - all residential listings in "S", “SD” or "UC" status for 24 months ending 4/15/14)
With demand high and inventory levels low, it’s easy to conclude that right now it’s a “Seller’s Market” in Summit, however the robust conditions offer opportunities for both sellers and buyers. Teri Lusty, Sales Associate at Keller Williams Realty in Summit, said, "The level of home price appreciation in the Summit market, given the economic turmoil of 2007-08, is very impressive. Local market conditions continue to be favorable for both buyers and sellers, as mortgage rates are still historically low, and demand continues to outpace inventory supply."
According to both Kaelin and Lusty, buyers seeking value and a good long-term investment in a hot market, should consider areas that feature the same accessibility to excellent schools, proximity to shopping and transportation, and a character of its own that you feel that you will enjoy.
Those looking to purchase also need to consider where they might spend their time in town, and whether they enjoy getting around under their own steam, e.g. walking or biking, or whether they are just as happy to drive. Check out www.walkscore.com to see how your new or current neighborhood rates on the “walk score” scale.
To reach Kaelin or Lusty, visit MaureenKaelin.com.