Contact me for more information on fire safety or Basking Ridge Real Estate!  

If you are thinking about buying or selling a home visit my website to search what is currently for sale in and around Basking Ridge, NJ.

The following 8 properties went under contract this past week in Basking Ridge, that is five more contract sales than last week; I don’t think we are going to see much of an August slow down this year! 

82 Alexandria Way listed for $268,000
34 Smithfield Ct listed for $279,900
191 Irving PLace listed for $305,000
5 Brook Ave listed for $399,000
16 Prescott Court listed for $437,000
75 Dorchester Drive listed for $549,900
88 Cherry Lane listed for $599,000
7 Carlisle Road listed for $699,000

There are an additional 14 properties that are working through attorney review.

Please contact me if you would like more information about any of these Basking Ridge homes or visit my Basking Ridge real estate website for more information on what has sold each month over the past year.

New to the Basking Ridge market are the following 12 properties (note that some of these have been available for quite some time but have been relisted):

49 Smithfield Court listed for $236,000
72 Commonwealth Drive listed for $284,000
67 Countryside Drive listed for $349,900
7 Plymouth Court listed for $499,000
11 Cannon Court listed for $509,000
120 Lyons Road listed for $519,999
138 Patriot Hill Drive listed for $679,000
25 Benedict Crescent listed for $694,999
49 Juniper Way $699,900
98 Washington Ave listed for $789,000
6 Chelsea Court listed for $1,749,000 (has been For Sale By Owner for a LONG time)
16 Prescott Court listed for $437,000 (already under contract!)

As of this afternoon, there are a total of 221 listings showing active in Basking Ridge in the MLS.  With 39 going under contract in the last 30 days, Basking Ridge market absorption is 6.14 months (up from last week which was 5.97 months.

Please contact me if you would like more information about any of these Basking Ridge homes or visit my Basking Ridge website to sign up for listing alerts in and around Basking Ridge.

Only 3 properties went under contract this past week in Basking Ridge.  That means offers were negotiated, attorney review was completed and inspections are underway on the following properties:

169 Alexandria Way had been listed for $247,500
36 Chestnut Court had been listed for $355,000
10 Butternut Lane had been listed for $1,825,000

There are an additional 12 properties that are working through attorney review.

Please contact me if you would like more information about any of these Basking Ridge homes or visit my Basking Ridge real estate website for more information on what has sold by month (July numbers will be posted on Monday).

New to the Basking Ridge market are the following 11 properties (note that some of these have been available for quite some time but have been relisted):

125 Potomac Drive listed for $254,750
218 English Place listed for $265,000
2003 Rose Court listed for $314,999
261 Penns Way listed for $325,000
2104 Rose Court listed for $345,000
23 Lindbergh Lane listed for $439,900
92 Dorchester Drive listed for $510,000 (my listing – click for info)
41 Harrison Brook Road listed for $599,000
76 Culberson Road listed for $699,999
6 Honeyman Road listed for $765,000
150 Bernards Drive listed for $1,149,000

As of this afternoon, there are a total of 233 listings showing active in Basking Ridge in the MLS.  With 39 going under contract in the last 30 days, Basking Ridge market absorption is 5.97 months.

Please contact me if you would like more information about any of these Basking Ridge homes or visit my Basking Ridge website to sign up for listing alerts in and around Basking Ridge.

Contact me for more information on the benefits of owning a home; I can also tell you about the first time home buyer credit or set you up for listing alerts.

7/17/09 – 7/24/09

7 properties went under contract this past week in Basking Ridge.  That means offers were negotiated, attorney review was completed and inspections are underway on the following properties:

13 Potomac Drive was listed for $220,000
202 Irving Place was listed for $259,900
9 Potomac Drive was listed for $324,000
116 Countryside Drive was listed for $374,000
76 Patriot Hill Drive was listed for $619,000
7 Wolf Lane was listed for $1,375,000
36 High Meadow Lane was listed for $1,739,000

There are an additional 11 properties that are working through attorney review.

Please contact me if you would like more information about any of these Basking Ridge homes or visit my Basking Ridge real estate website for more information on what has sold by month.

New to the Basking Ridge market are the following 9 properties (note that some of these have been available for quite some time but have been relisted):

119 Potomac Drive listed for $249,000 (already in attorney review)
105 Jamestown Road listed for $284,900
51 Aspen Drive listed for $499,000
297 S. Finley Ave listed for $569,000
11 Fairbanks Lane listed for $575,000
15 Canter Drive listed for$735,000 (had been For Sale by Owner)
2 Sentinel Drive listed for $812,000
45 Dickinson listed for  $848,000
95 Manchester Dr.  $849,999

As of this afternoon, there are a total of 234 listings showing active in Basking Ridge in the MLS.  With 35 going under contract in the last 30 days, Basking Ridge market absorption is 6.7 months.

Please contact me if you would like more information about any of these Basking Ridge homes or visit my Basking Ridge website to sign up for listing alerts in and around Basking Ridge. ]]> http://basking-ridge-real-estate.com/blog/basking-ridge-real-estate-info/what-sold-this-week-in-basking-ridge-and-what-is-new-to-the-market-2/feed/ 0 http://basking-ridge-real-estate.com/blog/general-real-estate-info/market-absorbtion-basking-ridge-and-surrounding-areas/ http://basking-ridge-real-estate.com/blog/general-real-estate-info/market-absorbtion-basking-ridge-and-surrounding-areas/#comments Thu, 23 Jul 2009 16:31:42 +0000 Jennifer Blanchard http://basking-ridge-real-estate.com/blog/?p=309 Absorption Rate is a way to measure current inventory levels.  It is based on the number of current listings and the number of contract sales in the last 30 days. Market absorption is an indicator of who is favored in the market: buyers or sellers, and it directly correlates to appreciation or more recently, depreciation.  As of last Friday, absorbtion rates in my key market areas were as follows: 

As I have said many times before, monitoring absorbtion rate on a daily or weekly basis is like getting on the scale too often when dieting; we have to look at the big picture – or the trends.  Rates will vary based on typical seasonal cycles.  They also vary greatly by price point or community. 

This information is something that I monitor pretty closely for each of my seller and buyer clients – if I have your home listed, you can expect this information on a regualar basis and you can be confident that my recommendations and marketing  are based a thorough understanding of what is happening in your market segment.

I am happy to provide information on the impact of absorbtion rate on the value of your home.  If you are thinking about buying or selling a home, contact me today for all of your Basking Ridge real estate needs or visit my website to search homes for sale in and around Basking Ridge, NJ.

9 properties went under contract this past week in Basking Ridge.  That means offers were negotiated, attorney review was completed and inspections are underway on the following properties:

350 Potomac Drive had been listed for $245,000 (sold in under a week!)
148 Woodward Lane had been listed for $269,000
243 English Place had been listed for $270,000
124 Potomac Drive had been listed for $284,474
48 Countryside Drive had been listed for $379,900
30 Lake Road had been listed for $515,000
113 Constitution Way had been listed for $529,999
13 Dexter Drive South had been listed for $578,500
19 Eton Place had been listed for $814,900

There are an additional 11 properties that are working through attorney review.

Please contact me if you would like more information about any of these Basking Ridge homes or visit my Basking Ridge real estate website for more information on what has sold by month.

New to the Basking Ridge market are the following 9 properties (note that some of these have been available for quite some time but have been relisted):

149 Potomac Drive listed for $212,500
119 Potomac Drive listed for $249,000
72 Jamestown Road listed for $285,000
30 Battalion Drive listed for $499,900
18 Mt Airy Road listed for $559,000
128 Sunset Lane listed for $649,900
49 Watchung Drive listed for $879,000
14 Byron Drive listed for $914,900
94 South Stone Hedge Drive listed for $1,299,000 

As of this morning, there are a total of 242 listings showing active in Basking Ridge in the MLS.

Please contact me if you would like more information about any of these Basking Ridge homes or visit my Basking Ridge website to sign up for listing alerts in and around Basking Ridge.

There have been 10 sales in Basking Ridge so far in July – at various price points as follows:

• under $300,000: 4 sales
• $300,000 and $500,000: 1 sale
• $500,000 and $800,000: 2 sales
• $800,000 and $1,000,000: 1 sale
• over $1,000,000: 2 sales 

Breakdown of absorption rate by price range:

• under $300,000 there are  33 available properties, 8 sales in the last 30 days, absorption rate: 4.1 
• $300,000-$500,000 there are 49 available properties, 5 sales in the last 30 days, absorption rate: 9.8
• $500,000 and $800,000 there are 81 available properties, 8 sales in the last 30 days, absorption rate: 10.1
• $800,000 and $1,000,000 there are 24 available properties, 3 sales in the last 30 days, absorption rate: 8
• over $1,000,000 there are 61 available properties, 11 sales in the last 30 days, absorption rate: 10.1

Weichert has been studying market conditions for more than three decades and has found a direct correlation btween market absorption and property values.  As absorption rates increase over the normal rate of 5-6 months, property values decline annually.  I emphasize annually because as I have mentioned before, looking at absorption rates too frequently is like getting on the scale every day when you are trying to lose weight!  They tend to fluctuate regularly, so it is important to look at them as they trend in one direction or the other.  Compare today’s absorption rate to the last time I reported it in June.  The theme I continue to notice is that the rates are decreasing in the lower price ranges first!   I believe that the real estate market recovery will be a bottom up trend driven by the first time home buyer. Once again, fueled by the first time home buyer tax credit!

Are you interested in what is available in Basking Ridge – or any of the surrounding areas?   You can search for listings on my website.  As always:  no obligation, just information!

The following information was taken directly from the Tax Assessor page on the Bernards Township (Basking Ridge) website, and summarizes the mission and procedures for determining tax assessments here in Basking Ridge:

• The Mission of the Office of Assessment strives to maintain a fair and equitable tax base for the community based on sound assessment practices. Our plan is to treat all property types and owners impartially.
• The Assessor is responsible for identifying and placing a value on every parcel of land within the confines of the Township’s borders. The values are derived through the formulation of models developed from closed comparable sales and uniformly applied to comparable housing styles for design, quality, and location. These values become the final assessed values for residential properties and should closely reflect 100% of market value.
• The final property assessed values are reviewed and updated on an annual basis. For tax year 2006 and thereafter, the annual program will continue. All assessments are based on market trends by neighborhood, styles, size as of October 1, of the pretax year. Ratable totals may increase or decrease depending on these trends and the property condition.
• All properties are scheduled for re-inspection on a four-year rotation, which enables the adjustment of our property data base for alterations and improvements that may not have had building permits. Any properties not physically inspected will be estimated based on typical attributes of comparable housing. Annual reassessing and the re-inspection process contribute to more equitable and uniform assessments throughout the Township.

I was thrilled to find that information on the website.  I did not realize that the township strives to have assessments reflect market value at 100%.  I knew that Basking Ridge assessed on a yearly basis and I knew that they compare “apples-to-apples” so to speak – by looking at neighborhoods with similar homes ie: a house on Peachtree Road won’t be compared to a house on Stockmar Drive and town homes are only compared to other town homes in the same development.  I think that Bernards Township has 200 distinct neighborhoods delineated for this purpose.

I had also heard – I think while I was at a Jeffery Otteau seminar last fall – that assessements in Basking Ridge are about two years behind the market.

This afternoon, I reviewed closed sales from the last 12 months – excluding new construction which hadn’t been assessed.  I calculated the ratio of sale price to assessed value and then averaged it.  There were approximately 300 sales, the data was a bit inconsistent – depending on the list date of the property, some were compared to 2007 taxes and some were compared to 2008 taxes, but for purposes of our discussion, I’m not sure if that matters.  

The average sale in Basking Ridge closed at a price that was 98% of tax assessment.  I broke it down further by price range and then again by single family versus town home/condo.  In the under $600,000 range, the average ratio was 96%; between $600,000 and $1,000,000 the average was 100% (that surprised me, so I calculated it twice!)  The average for properties that sold over $1,000,000 was also 100%.

Basking Ridge Townhouses and condos sold at 98% of assessment (150 sales) and Basking Ridge single family homes also sold at 98% of assessment (142 sales)

What sort of conclusions do you draw from this information? 

For more information on the value of YOUR home in the current market, visit the Basking Ridge Real Estate website.

Since I didn’t report the information last month, I can’t show you the comparisons, though on June 3rd I did blog about the $1m+ range as well as Basking Ridge overall.  Based on what I calculated tonight, the overall township rate has improved, but the higher level price range hasn’t changed much.  Here are the numbers by price range:

• Under $300,000 – 3 months of inventory with 33 homes available
• $300,000-$600,000 – 6.5 months of inventory with 91 homes available
• $600,001-$999,999 – 4.7 months of inventory with 66 homes available
• $1,000,000 and over – 6.7 months of inventory with 67 homes available

The overall market absorption in Basking Ridge is 5.2 months with 257 properties available.  An absorption rate between 5 and 6 months is indicative of a balanced market, a market in which neither buyer nor seller have the upper hand.  If we  can maintain a normal market absorption rate, maybe, just maybe, we’ll begin to see some appreciation of our Basking Ridge real estate values once again!

For more information about the properties available in and around Basking Ridge, visit www.Basking-Ridge-Real-Estate.com to sign up for listing alerts.

I think that Market Absorption is a great way to monitor the market, but it’s not the end-all-be-all. Monitoring it too closely is sort of like getting on the scale every day when you are on a diet – - it will make you crazy!   It’s enough to know that Basking Ridge Real Estate is highly desirable.  Basking Ridge schools are second to none and we have a relatively easy commute to New York City.  In fact, the fact that it is a little longer of a train ride than Summit or Westfield has probably worked in our favor when it comes to keeping our property values a little bit lower – making it an affordable choice for a home on a sizable piece of property and for keeping our taxes in check.

Are you enjoying this Basking Ridge real estate blog?  Please comment and let me know what sort of information you find most useful and interesting and please, by all means, tell your friends about it!