Blog

West Orange NJ Real Estate | Home Sales | Inventory Levels

West Orange Real Estate Roundup for June 2010

Click here to view all West Orange NJ Homes for sale

As summer gets into full swing, so does the housing market in West Orange.  Sales are picking up and by looking at the charts below you will see the trend over the last 36 months have been consistent in terms of sales volume and its timing.  Summer months are always more active for many reasons.  Prices seem to be leveling off, but there is a glut of inventory out there.  It is still a massive buyers market but there seems to be very little disconnection between buyers and sellers which offsets some factors for declining markets.  The average sales price has been between $350,000 and $400,000 this year.  Additionally, the assessed values of homes reflecting property taxes needs a big looksie.  Property tax appeals are becoming much more popular and could mean a great deal to potential home seekers.

In regards to property taxes, the Otteau Valuation Group has the following to say: “The monthly tax bill on a $350,000 house in West Orange would be $286 greater than in Livingston. The yearly tax bill would be $3,432 greater — $10,012, as opposed to $6,580. Assuming the house had a 30-year mortgage, that would mean $48,000 more in taxes over the life of the loan.”  This further strengthens my suggestion to the Tax Assessors office to start negotiating assessed values.  APPEAL APPEAL APPEAL!!!

According to the Garden State MLS, there are currently 416 active listings in West Orange.  296 of those are single family homes, 120 of them are Condos.  The average asking price of an active condo is $419,889 and the average asking price for a single family home is $498,485.

The current rate of absorption is about 8 months right now.  In comparison, the national average is about 6 months.  An absorption rate in short means the amount of months it would take at the current monthly rate of sales to sell all of the active listing inventory on the market.  FYI, speculative builders typically wait until the rate of absorption hits 4 months.

For the purpose of this real estate report, we have combined condos and single family homes.  Due to the inventory, we anticipate the average price of homes sold to drop about 5% before the market reaches an equilibrium.  That said, and knowing it is a buyers market, now is the time to search and be picky for the house that you love.  I tell people all the time.  The worst is over.  If you have plans on living in your home more than 5 years, your long term gains on your house combined with today’s low mortgage rates should make up for any unforseen loss in equity during any value correction.

To see our full month over month and year over year statistic report in West Orange, CLICK HERE

If you are a homebuyer or looking to sell your home in West Orange, contact us for an immediate consultation.  We offer a free comparative market analysis on your home to determine its estimated market value and offer buyers a full introduction to West Orange.  We would value an opportunity to discuss West Orange real estate with you.  You can contact us through e-mail or by calling me direct at 877-688-7582.  We do more research than any firm out there and know how to protect and represent you best!

_________________________________________________________________________________________________________

February Round Up – Home Sales & Inventory

I love West Orange.  For most of you that know me know that I am from Montclair, practically the W. Orange border.  In my research, West Orange is in a little bit of a bind as far as inventory goes.  I think the overall appeal to West Orange is higher than most areas of Essex County, so our prediction stands that 2010 will see further declines, but not to be scared off.  If you find a home that is priced right and you absolutely love it, let’s sit down and look at the value where we will find an aggressive bidding price.

So inventory in West Orange stands high with 223 Homes for sale as of March 1, 2010.  The average listed price of a home is $514,654.

In January, 2010 there were only 13 homes sold with an average selling price of $430,438.

In February 2010, there were even fewer sales.  Only 9 homes sold with an average selling price of $439,944.

An Absorption Rate is the time an area will sell out of homes at the previous months’ sales pace.  That being said, the Absorption Rate for West Orange was 24.8 Months, above the national average.  This is not a healthy sign of inventory / absorption.  We predict values will continue to drop in West Orange until the buyers and sellers out there reconnect on what a fair price for the homes are.  With the amount of homes versus the amount of sales, we predict there will be a drop in values of 8-10% in West Orange in 2010.

_________________________________________________________________________________________________________

If you are looking for homes for sale in West Orange, NJ, chances are you have run across our website.  We specialize in West Orange real estate and would value an opportunity to work with you on your real estate needs. Contact us for a consultation.  Ask for Scott, that’s me.  Scott is a former All-American baseball player /alum of Montclair State University (1997-2001) and spent his college years bartending in West Orange.  Ya just might know me!!  After my 4 years at MSU, I went on to play with the NJ Jackals.  I am a local guy and everyone’s friend, but very experienced real estate pro when it comes down to business!

Before I forget, you can click here to view all available homes for sale in West Orange, NJ. Be sure to call us to set up a showing appointment.

Well, let me start by saying Happy New Year, West Orange, NJ!!

It’s been a rather interesting year in the macro economy and as a result, real estate values, prices, and inventory has fluctuated greatly.  Let’s see how West Orange did in 2009.  Be sure to read the entire article for our West Orange 2010 real estate predictions.

2008

• 456 SINGLE FAMILY HOMES sold in West Orange during 2008
• The average sales price of a single family homes sold during 2008 was $420,036
• 26 Multi-Family Homes sold in W. Orange during 2008
• The average sales price of a multi-family home sold in 2008 was $341,891

2009

• 398 SINGLE FAMILY HOMES sold in West Orange during 2009
• The average sales price of a Single family home sold during 2009 was $383,867
• 31 Multi-Family homes sold in W. Orange in 2009
• The average price of a multi-family home sold was $254,929

The statistics above show that Single Family Home sales volume dropped 12.8% in 2009 when compared to 2008.  They also indicate that there was an 8.7% drop in the average sales price of single family homes.

The statistics above show that Multi-Family Home sales volume in West Orange increased by 16.2% in 2009 when compared to 2008.  They also indicate that there was a significant 25.5% drop in the average sales price of multi-family homes.

Considering the circumstances, a drop in Single Family home values of 8.7% is rather good compared to other parts of northern NJ.  Prices on multi-family homes have dropped to very favorable prices.  While prices have dropped, rental rates have remained nearly the same, making the pro forma for an owner occupied dwelling or income property that much more attractive.

See volume and average selling price charts below.  Click graphs to enlarge.  Click Here to download the full W. Orange PDF Report

2010 Real Estate Prediction for West Orange

As of January 4, 2008, there are 296 homes for sale in West Orange.  During the month of December 2009, it was reported in the charts above that 33 homes sold.  This puts the current rate of absorption for West Orange at just under 9 months.  Note:  Builders use the number 4 as an indicative rate of absorption when looking into favorable construction markets.  Under 4 months of absorption is favorable to build.  Over 4 months is considered not favorable.  This is the case with most of the country, however.

During the first half of 2009, 155 homes sold in W. Orange.  During the second half of the 2009 year, 243 homes sold in W. Orange, an increase of 63.7% in sales volume.  Inventory levels have shrunk and prices are beginning to stabilize.

We believe that West Orange has experienced the bulk of any real estate correction.  In consideration of the 9 month rate of absorption, we believe that W. Orange property values will fall an additional 5-10% due to the large amount of inventory.  The expiration of the First Time Homebuyer Tax Credit will likely create a bounce affect.  Sales volume will likely decline slightly, however low mortgage rates ought to provide for extra buyer motivation.

That being said, we believe that any drop in real estate values that we predict could be negated or alleviated by utilizine the First Time Homebuyer Tax Credit, as well as taking advantage of historically low rates.  We believe that West Orange will see a general stagnation in values over the next 12-15 months, however we encourage those looking for homes to begin shopping now.  There are great deals out there and if you love a home, this year may not be the year where you can hope that it will “be there tomorrow.”  West Orange has a high turnover ratio with an average of over 33 homes per month selling.

Remember!!  A nice home, priced correctly sells quickly.  If you find a house you love, look into making a bid on it.

Popularity: 9% [?]