Let’s take a look at how the real estate market in Clark performed in December of 2019.
Inventory continues to drop!
In December, 17 single family homes were sold and 75 homes were offered for sale. This is the lowest active inventory seen in Clark since February of 2018. Low inventory often occurs as the days get shorter and this drop can be explained, at least in part, to seasonal variability. To search for listings, please click here.
- Why does this happen? More homes are offered for sale in the spring and summer than in the winter which explains the peaks and valleys in the white line above, the active listings over the last 7 years. The green line represents sold listings in Clark over the last 7 years and the straight light green line represents the trend in sales, eliminating the monthly variation and showing a long term trend of upwards sales.
- What does this mean for buyers? Fewer homes on the market usually results in higher prices. If you find a home you like, be prepared to make a strong offer quickly.
- What does this mean for sellers? This is a stronger market 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.
The average list price in Clark in December was $550,629 (compared to $536,939 in December of 2018) and the average sale price was $528,176 (compared to $444,125 in December of 2018).
When you look at the graph of home prices in Clark, it’s obvious that there are tremendous variations from month to month. As a rule, prices are higher in the summer and lower in the winter due to supply and demand, but of course there are exceptions to this rule. One exception is extreme homes – those that sell for far below or far above the typical home sale in Clark. Short sales, foreclosures and homes in disrepair often sell for less than market average. The important thing to note in the graph are the straight lines which represents the long term trend, eliminating the seasonal variability and the variability brought on from extreme cases. The trend line continues to show a healthy improvement in prices in Clark over the past 7 years and the forecast is for prices to continue to increase. Homeowners are likely to see an increased return on investment as time goes on.
- What does this mean for buyers? Increasing prices creates a need for buyers to be prepared to make a strong offer on the right home. Sellers don’t feel any need to negotiate in such a strong market. Consult your realtor to look at homes that fit your needs and budget.
- What does this mean for sellers? If you price your home correctly, it will sell. Homes in poor condition will need to be priced lower than an updated home, but there are enough buyers to go around this winter.
Days on Market:
The average sold home in Clark in December was sold after 53 days on the market, noticably slower than the 12 month average of 43 days. Sellers who want to sell their homes quickly may have to adjust expectations or lower their asking price.
Of course, there are exceptions to this rule and the graph’s dramatic variations are indicators of this. Seasonal variability often results in longer DOM in winter and shorter in summer, but the overall trend line above eliminates that seasonal variability.
Homes sell faster when they are:
- In pristine updated condition,
- Are marketed aggressively, and
- Are priced correctly.
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.
To read more about the real estate market in Clark, please read our earlier market reports here. For more information on how Team Zuhl can help you, please click here or call us at 908-917-4189.