According to the National Association of Realtors (NAR): Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 3.7 percent to a seasonally adjusted annual rate of 5.10 million in March from an upwardly revised 4.92 million in February, but are 6.3 percent below the 5.44 million pace in March 2010. Sales were at elevated levels from March through June of 2010 in response to the home buyer tax credit.
How Did Ocean County’s Existing Home Sales Compare to the Nation’s?
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As we can see, month-over-month, existing home sales rose 24% from February through March of 2011, in Ocean County, NJ. What may be even more relevant is the significant decrease in the month’s supply of homes (inventory); down almost 3 months or 16%! We typically experience an increase in inventory at this time of year.
How Did Ocean County’s Home Sales Perform Year-Over-Year?
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Unlike what we saw in Toms River, here we see a modest decrease in Ocean County Home Sales Year-Over-Year (ONLY 2 units or less than half a percent) but this is still significant considering we were in the final 2 months of the Home-buyer Tax Credit at this point last year! We have an extra month’s worth of supply of homes this year versus last (14.48 vs 13.34), so next month’s Existing Home Sales Report should be very interesting.
In Layman’s Terms: Sales of existing homes in Ocean County, NJ, have increased month-over-month (24%) and stayed relatively flat year-over-year (.04%), despite the absence of any government stimulus (Tax Credit). The key factor to continue to monitor is the month’s supply of homes or inventory levels (currently at over 14 months), home prices will continue to fall until Ocean County reaches a balanced real estate market (typically between 5-7 moths supply). Only then will home prices begin to stabilize.