Looking at Real Estate Sales in Middlesex County
for the First Quarter of 2012
Analyzing real estate sales and contracts signed is a great analysis tool for obtaining current information and data relating to home buyer activity. It is one thing knowing that potential home buyers are out looking at homes for sale, but it is another to know if they are also making contract offers and obtaining signed contracts. Real estate showing activity is important, but real estate sales contracts signed is a better analysis tool in looking at the current real estate market. It provides a preview to what the closed real estate sale statistics may look like in the second quarter of 2012.
Whether home buying or home selling, obtaining reliable information about real estate statistics and real estate values is important whether you are looking for a home in Iselin or Colonia, in Middlesex County, New Jersey or in any other town or state. Yes, there have been more home buyers setting appointments to preview homes. Yes, there are more home buyers submitting contact offers. And yes, there have been more instances of multi contract presentations on the same home.
However, not all real estate contracts become closed sale transactions. The signed contract is the only the start to a home purchase, a home sale and a closed real estate transaction.
Real estate sales transactions fall through or are cancelled for many reasons. First of all, in New Jersey, there is the Attorney Review Clause which provides the buyer or seller with the ability to have the real estate contract cancelled by their Attorney during the Attorney Review period. And this does occur! Home buyers change their mind, parents look at the home and disapprove it, home sellers obtain higher offers, among others.
Beyond the initial Attorney Review period, transactions also fall through or are cancelled. Some of the more common reasons are home inspection problems which cannot be resolved and mortgage denial concerning credit, income verification, down payment and closing costs verification and under appraisals. There are also cancelled contracts in many short sale transactions due to the time delay in obtaining short sale approval. In fact, more contracts are being cancelled now than ever before.
Here is the information of under contract transactions for the period of January 1, 2011 – March 31, 2011 as compared to January 1, 2012 – March 31, 2012 for residential on family homes as reported in the Middlesex County Multiple Listing System as of 4/7/12 for various towns. It is important to note that the under contract transactions for the first quarter of 2011 are now closed transactions, with the exception of a few which may be in the under contract category due to the fact that they are short sales and the transaction has not closed yet.
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Yes, there is more sales contract activity in 2012 as compared to 2011. However, as previously discussed, these statistics will change, The change will be approximately 10-20%, as it is possible that this will be the amount of cancelled transactions and will become what is commonly referred to as dead deals in the real estate industry.
Be sure to subscribe to this Blog Post. The under contract statistics for the First Quarter of 2012 will be updated in May and in June. This updating will reveal the percentage of real estate transactions cancelled and provide a better guide to what the real estate market truly revealed in the First Quarter of 2012.
The above article,“Real Estate Sales in Middlesex County, New Jersey 2012 First Quarter”, was written by David Fialk, REALTOR, Broker Owner, Choice Realty Co., Iselin, New Jersey and regularly posts real estate articles of interest for home buyers, home sellers and home owners.
Licensed since 1971, David has helped over 1800 families move across town, across the state and across the country and specializes in the towns of Iselin, Colonia, Edison, Woodbridge, Avenel, Fords, Sewaren, Port Reading, Keasbey, Carteret and Metuchen in Middlesex County, New Jersey.
Planning on purchasing real estate? Thinking of selling your home? For real estate information ”You Can Rely On, Contact the REALTOR You Can Rely On”.