Cranford's Real Estate Sales Market More Healthy, Active Than a Year Ago

Cranford's real estate market is showing signs of healthy activity.

In this real estate report, let's include a comparison of third quarter 2008 to third quarter 2009 market statistics to see how Cranford’s market is performing relative to a year ago.

Third Quarter 2009:
Closed Sales: 74
Average Sales Price: $433,925
Average Days on Market: 67
Sale Price to List Price Ratio: 96 percent

Third Quarter 2008
Closed Sales: 60
Average Sales Price: $444,211
Average Days on Market: 70
Sale Price to List Price Ratio: 96.7 percent

So what does this mean for homeowners and people considering a home purchase in Cranford?

Quite simply it looks like the market is considerably more active in the 2009 third quarter than one year ago. The number of transactions increased by 23 percent, and the average sales price remained relatively stable, with a decline of only 2.4 percent.

This shows signs of a healthy real estate sales market, as with increased sales and decreased inventory, prices have been kept from further decline.

This increase in number of transactions can be attributed to the first time home buyer $8,000 tax credit that is set to expire on November 30. Many first time home buyers decided to make a purchase this year due to this incentive. Also, mortgage financing became less restrictive than a year ago during the worst of the financial market challenges. Low interest rates in the second and third quarters of 2009 helped improve the affordability and purchasing power of buyers.

Congress is currently debating whether to extend/expand the first time home buyer tax credit. This decision will likely have a sizable affect on the residential real estate market. If they extend or expand the credit, sales are likely to remain strong. If the credit expires, it may cause a short term slowdown in sales activity until more job creation spurs more home purchases.

Sean Carroll is Team Leader of “Team Carroll” at RE/MAX Classic Group, and can be reached via phone at 908-376-1569, by email at Sean@TeamCarrollNJ.com,  or via the web at www.TeamCarrollNJ.com.