Franklin Lakes Real Estate Report | November 2010

Franklin Lakes had a slow month of November regarding sales volume.  What is more noticeable is that you can buy your dream home in Franklin Lakes for far less money that you would have paid in 2008.  Home values are down about 20% since 2008 and we expect this Spring to really indicate the state of the market.  For the most part, Franklin Lakes may have hit bottom.  The biggest change in the median value of homes came from 2008-2009 when the median dropped 16.5%.  Since then, the median has only dropped an additional 3.5%.  Here are some details of the November sales in Franklin Lakes:  All information is based off of data from the NJMLS.

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• 777 Aspen Way:  2 Bed 1 Bath Original asking price $599,000.  Sold for $430,000.  72% of Asking Price achieved.  On the market for 124 days.  Cash Purchase.
• 752 Lawlins Rd:  3 Bed 2 Bath.  Original asking price $649,000.  Sold for $628,000.  96.7% of Asking Price achieved.  On market for 42 days.  Conventional financed.
• 764 Aspen Way:  4 Bed 2 Bath.  Original asking price $729,000.  Sold for $635,000.  87% of Asking price achieved.  On market for 143 days.  Conventional Financed.
• 618 Dakota Trail:  4 Bed 3.5 Bath.  Original asking price $890,000.  Sold for $875,000.  98% of Asking Price achieved.  On market 38 days.  Conventional Financed.
• 901 Pinecroft Ct:  4 Bed 3.5 Bath.  Original asking price $1,135,000.  Sold for $932,500.  82% of Asking Price achieved.  On market 148 days.  Cash Purchase.

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It would be interesting to get your thoughts in our comment section.  A couple of things we notice that stick out:

• 2010 Sales Volume has surpassed 2009.  In 2009, 74 homes sold in total.  Year to date so far Franklin Lakes has sold 89 homes, up 17% since 2009 and up over 25% since 2008.  The fact that prices are way down since peak combined with the pristine appeal that Franklin Lakes offers, we expect sales to ramp up in the next few months.
• The only thing that will hinder stability is the “shadow inventory” in New Jersey.  It is expected that NJ has one of the highest amounts of shadow inventory in the nation.  Nobody knows exactly how much is in each area.  Franklin Lakes may have none, we won’t know for a bit.
• The rate of absorption is calculated by taking the amount of home sales during the previous month and dividing it by the number of homes for sale.  This would indicate the amount of months it would take to sell out of all homes for sale at the current rate of sales assuming no other homes came on the market.  Indicative of November sales, Franklin Lakes new rate of absorption is 19.6 months, well over the 9 month national average.
• The least expensive homes seem to be selling a lot to real estate investors indicated by a Cash Purchase.  As a real estate investor, renovating homes and flipping is very attractive in many NJ luxury markets.
• In the last 3 years, according to the NJMLS, Franklin Lakes monthly sales volume has not surpassed 12 sales.  Only 4 months out of the last 36 months has Franklin Lakes seen a 12 sale month.
• The annual median sales price for the last 3 years, was $1,097,500 in 2008, followed by $922,500 in 2009, and $891,000 year to date 2010.  That is a 19.5% drop in the median with most of the significant drop coming between 2008-2009.
• We expect the average price to drop a little bit more until 2011 Spring.  At that point, we feel sales volume will pick up quite a bit.  Bargain buyers are out in full effect these days as sellers recognize that Winter is typically slow, adjusting their asking prices more aggressively.

CLICK HERE to preview a full 2008-2010 report.  Monthly and annual figures included along with performance charts.

If you are looking to buy or sell a home in Franklin Lakes, NJ, we would value an opportunity to offer any suggestions or work with you on a decision to put you in an advantageous position in the market.  For a free phone or personal consultation, please call Scott @ 877-688-7582 or e-mail me here.  Be sure to browse all homes for sale in the right column of our website where we offer a free MLS/ IDX search for you!  We are the gurus of Franklin Lakes NJ Real Estate.

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