Montgomery Township, comprising the postal codes of Belle Mead, Skillman and part of Princeton, is a very volatile real estate market.  Since it is rather small, with fewer than 300 sales per year, even a slight increase or decrease in units can have an apparently large impact.  In August, for example, the absorption rate jumped from 4.1 months to 7.4 months, and the supply/demand ratio dropped from 72% in July to 55% in August.  If we look at this year through August, we see an average supply/demand ratio of 52% and an average absorption rate of 7.8 months, both numbers better than Somerset County as a whole.

Prices are another story.  The average sale price in 2007 was $618,180, the median $557,500.  This year the average sale price is $586,519, off about 5% from last year, and the median is $525,000, off nearly 6% over last year.  This is the third straight year of price declines.  The Montgomery market may still be trying to find a bottom, but when it does, it won't last long.

If you're thinking about buying or selling in Montgomery Township, call someone who knows the market.

The Hillsborough, New Jersey real estate market continues to move along at a slow but steady pace.  In August the absorption rate rose to 6.9, nearly seven months to sell out current inventory at the current rates of sale.  The supply/demand ratio dropped to 68%, but was still better than the same month in 2007 (57%) or even 2006 (50%).  In other words, fewer homes are coming on the market than in previous years, and sales, though fewer, are still happening at a reasonable rate.  August is usually a slower month, what with vacations, etc.

As far as prices are concerned, the median sale price in all of 2007 was $349,450.  Through August of this year, the median sale price is $353,750, or a bit more than 1% higher than last year.  The average sale price in Hillsborough for all of last year was $393,017, compared to $387,207 this year, or about 1.5% lower.  In other words, median or average, sale prices remain stable. 

Don't expect any wild gyrations in prices in the future.  In fact, it would not be totally unexpected for there to occur a steady increase in average sale price over the next few months.  If you're thinking about buying or selling a home in Hillsborough, talk with someone who knows the market.

If you're looking for a major shift in the real estate market in Somerset County, New Jersey, you'll be disappointed.  The market in August continued to plod along in the same direction - improvement - as has been the case since January.

The number of homes available for purchase dropped off a bit, to 2453 from 2544 on August 1, but that compares with 2445 on September 1 of last year.  The supply/demand ratio dropped a couple of points, to 50%, meaning that as 100 new listings were added to inventory, 50 sales were made.  Back in January that number was at a dismal 29%.  The absorption rate saw an increase to 9.4, the number of months needed to sell off the current inventory at current rates of sale.  The lowest this year was 7.2, back in June, but last month was 7.8 months.

Prices remain relatively stable as well.  The median sale price in 2007 was $385,000.  The median for all closings through August of this year is $375,000.  The average sale price in 2007 was $498,302, this year so far, $473,845, about 5% less. 

Those buyers expecting a further drop in prices will be disappointed.  The worst of the real estate crisis is over, and recovery in prices and volume of sales is just around the corner.  Someone buying in 2008 can expect to see their courage pay off as once again prices start to rise in Somerset County, especially in several municipalities like Hillsborough, Montgomery and Franklin.