[This monthly market report is provided by Jeffrey Otteau of the Otteau Appraisal Group who also authors a series of widely followed market reports on the New Jersey real estate market. This information is collected from various sources including Boards of Realtors and Multiple Listing Systems in New Jersey.] I have known Jeff for many years and consider him one of the leaders of the real estate appraisal profession. He has taught me a lot about quantitative real estate market analysis over the years. -Jonathan Miller
STILL! Waiting for the Spring Market
Although buying activity in February registered a 15% increase over January’s level, it is currently running well behind last years pace confirming the slowdown in the residential market is continuing into 2006. Year-to-date buying activity is currently running 14% less than last year’s pace while the inventory of unsold homes on the market is 61% higher than a year ago. By combining these indicators the resulting Market Swing of -75% indicates that the 2006 market has lost 75% of its strength as compared to last year at this time. While considerable demand still exists from the buying side of the housing equation, declining housing affordability will continue to dictate the “mood of the market”. From the seller’s perspective, more aggressive marketing and pricing strategies will be essential to restore the buyer’s ‘sense of urgency’ that was prevalent in 2005.
Here are the 2005 annual stats as well.