The first quarter is now complete and the statistics show us that prices are up and inventory is slightly down in Madison.

According to the Garden State Multiple Listing Service, in the first quarter of 2011 there were 119 homes for sale (69 listed in that three month period), at an average asking price of 885,3756, whereas in 2012, there was a total of 116 homes (76 listed during the quarter) listed at an average asking price of 908,794, or up just under 3 percent. Every category of sized homes (number of bedrooms) increased with the exception of three bedroom residences, which is slightly down by just over 2 percent.

Although, it as though asking prices have not changed a great deal, those under contract or closed, which is a true indicator of current market conditions, have increased tremendously. The number of homes “under contract”, have gone from 26 to 38, with prices at an average of $643,715 to $760,021, respectively. Conversely, homes that closed in the first quarter of 2011 to this year, have decreased from 24 to 15, respectively, with the average price for homes closed increasing in 2012 from $596,042 to $866,133. The average days on the market (list to close) has gone up from 105 days to 118.

To put this in perspective, these statistics only look at the first quarters of each year. Many of the “solds” are carry-overs from the previous year’s sales in which the market was getting over its doldrums. However, for those “under contract” there is a 30 percent increase quarter to quarter with days on the market lessened from 98 to 48. This number is significant as it shows that houses are selling much faster. This can be attributed to higher demand but realistically, to more favorable pricing strategy, a key marketing to sale parameter.

Of course, this is only first quarter statistics, and based on just 15 totals homes closed. A very expensive home sold can sway the average price by a tremendous amount, therefore the six-month report will give a better indication. The weather conditions have also been big difference and a factor between this year and last, although certainly not the determining one. No snow and higher than average temperatures certainly helps for a better everything (unless of course your in the skiing industry).

All in all, it does tell us that homes in Madison are in demand and prices are moving upward. Whether it can sustain is another thing. But by all indications, we have hit bottom and the market is on its way back slowly but surely (we hope).  WHther you are looking to sell, buy, or rent, please contact Coccia Realty at 973.377.4400 or madison@mycoccia.com or visit their website at www.cocciarealty.com.