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State of the Market in Warren, NJ: A Review of 2014

Cathy Cooper

Cathy comes to the Weiniger Group with a varied background.

Cathy comes to the Weiniger Group with a varied background.

Jan 24 4 minutes read

2015 is officially underway, and it's the perfect time to look back on the past year in real estate. In 2014, there were a total of 172 homes sold in Warren, New Jersey. Here are a few quick facts to give you an overall picture of the 2014 real estate market:

  • The average sales price was $860,848.
  • The lowest priced sale was $146,000.
  • The highest priced sale was $2,469,000.
  • The median sale price was $750,000.
  • Homes spent an average of 71 days on the market.
  • Homes sold for an average of 96.5% of their listing price.

I enjoy breaking down the data by price range, showing the history of the most demanded price ranges. Out of the 172 sold homes, the most popular price ranges for 2014 were $500K-$999K.

One of my favorite statistics to analyze is absorption rate. It is the examination and prediction of how quickly can the current unsold inventory of homes (current active listed homes) can be absorbed (sold). You can see the results in the absorption rate graph below:

Our guide: 6 months is the balanced market benchmark.

IF, the absorption rate is under 6 months... it is a sellers market.

IF the absorption rate is above 6 Months... it is a buyers market.

We begin by calculating the last 12 months' history of sold homes. In this case, we are using Jan-Dec 2014 for our analysis -> 172 homes sold in 2014.

This figure is then divided by 12, resulting in the number of homes sold last year on a monthly basis. (172 divided by 12 -> 14.3 homes sold on average per month across all price ranges in Warren last year). Using the number of currently listed homes for sale as of April 6, 2015... (87), divide that by the rate at which homes sold last year: 87/ 14.333. This results in about 6 months of inventory on the button, translating to a balanced market.

As far as price ranges... that shows a different story. As you may have guessed, the under $1M homes have a much greater demand combined with less overall active inventory to be absorbed, resulting in a "seller's market," $1M-$2M range = a significant buyer's market and $2M+ = slightly a buyer's market. Note: this is a guide, but averages are just that, estimations, since every house is unique.

The above graphs offer a closer look at the 2014 market and how it also relates to previous years' data. Visually, you can easily notice the downturn of the 2009 real estate market with the higher days on market, lower sales price as a percentage of list price, and median sales price reduced. You can also notice that the median sales price in 2014 is similar to 2004 pricing, showing that we have yet to return to the high of the market pricing, on a township level. Of course, higher demanded homes (ones that are renovated, updated or younger built) are rising faster than the town as a whole.

For your complete digital copy of our State of the Market 2014 Report, CLICK HERE.

In 2014, the Weiniger Group closed 50 transactions, and these lovely residences are just a few that we had the pleasure of working with:

7 Stonehedge Court

55 Geiger Lane

10 Wexford Court

6 Thomas Jefferson Drive

For your complete digital copy of our State of the Market 2014 Report, CLICK HERE.

Our many happy clients, trusted us... you can too.

We would love to help you in 2015! Give us a call.

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