Homeowners and home buyers in Scotch Plains are smart to learn about the real estate market to help make an informed decision about when to buy and sell a home in Scotch Plains .
Here’s what’s been happening lately.
- 29 homes were sold in Scotch Plains in October – compared to 37 homes sold in October of 2018.
- Inventory is 151 currently listed homes compared to a 12 month average of 147 homes and to the 172 homes that were offered for sale at this time last year.
- As inventory increases, demand for homes usually decreases. This can help to lower prices and/or increase how long it takes to sell a home.
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.
In Scotch Plains, there are currently 5.21 months of inventory in a normal market. There are enough homes listed for sale to satisfy the current buyers in Scotch Plains.
- The average sale price in Scotch Plains in October was $594,038 – compared to the the 12 month average sale price of $557,267. After a brisk few months this summer, prices are dropping.
- The average list price in Scotch Plains in October was $663,570 – home sellers who want to compete in the fall real estate market in Scotch Plains are going to have to rethink their pricing strategy.
- Scotch Plains home prices vary seasonally and the trend line indicates steady growth over the past 7 years with every indication that prices will continue to rise.
Days on Market:
- In October, the average sold home in Scotch Plains was on the market for 53 days – compared to 43 days in August and compared to 59 days in October of 2018.
- The speed of a home sale is dependent on home condition, pricing, and marketing. Homes typically sell slower in the winter than the rest of the year as is evident in this six year graph below. The trend line, however, shows that the time it takes to sell a home continues to get shorter overall.
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.
- Work with a professional you trust who can help you navigate the muddy waters of bidding wars.
What this means for sellers:
- In a growing inventory situation, you’re competing with other homes on the market more than ever. 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.
- Work with your real estate professional to make sure that your home is priced right and marketed strongly!
To read more about the real estate market in Scotch Plains, please read our earlier market reports here. For more information on how Team Zuhl can help you, please call us at 908-917-4189.