More New Jersey small businesses may be on the market compared with last year, but asking prices for those businesses have declined.

A total of 1,867 small businesses in New Jersey were listed for sale during the first quarter, up from 1,801 in the same period last year, according to a quarterly report by online marketplace BizBuySell. The median asking price for the businesses, however, dropped to $265,000 this year from $269,000 in 2014, as median revenue for the companies rose to $445,778 from $420,000.

Though asking prices have fallen, business owners shouldn’t worry, according to Bob House, group general manager of BizBuySell.com.

“The decrease was only slight and shouldn’t be considered alarming,” House said in an email Tuesday. “It’s still good to see that the median revenue and cash flow of New Jersey small businesses increased slightly. These numbers indicate improving small business financial health.”

Cash flow rose slightly on a year-over-year basis in New Jersey to $109,000 from $107,392 during the first quarter in 2014.

The online marketplace said it analyzed 36 closed transactions during this year’s first quarter, and 53 closed transactions from the same period last year. That data showed that businesses sold at a median sale price of $299,000 this year with median revenue of $470,000. Last year, businesses sold at a median price of $310,000 with median revenue of $643,000.

According to examples provided by BizBuySell, the majority of businesses in Bergen and Passaic counties were sold for their initial asking prices. However, some businesses sold for less. One Bergen liquor store was sold $50,000 below a $950,000 asking price, while a Passaic County auto shop sold $80,000 below its $400,000 price tag.

According to House, asking prices could be on the decline because sellers are “becoming more realistic.”

“As owners become more intent on exiting their small business, they begin to lower their asking prices in order to attract more buyers,” he said.

Throughout 2014, a total of 196 small business were sold in New Jersey at a median sale price of $223,500, less than the median asking price of $236,900, according to the report. The median revenue of these businesses, which were mostly in the retail sector, was $480,650.

Of all the small businesses listed for sale, the retail sector continued to lead the way in the Garden State. A total of 727 retail businesses were listed on the marketplace during the first quarter, up from 646 last year. Retail companies have generated the most listings of any sector in the first quarter since 2007, as far back as the BizBuySell report goes.

The retail sector also represented the businesses with the lowest median asking price ($245,000) during the first quarter, while manufacturing enterprises represented the sector with the highest median asking price ($595,000) and fewest number of listings (55).

The report tracked statistics from transactions reported by participating brokers who sell small businesses nationwide.

Though quarterly results in New Jersey showed slight drops, state numbers – including asking and sale prices – were well-above national averages.

Overall, sellers in the U.S. asked for and received higher prices for their businesses compared with last year. For example, the median asking price nationwide for a small business during the first quarter jumped to $225,000 from $199,000 last year, while the median sale price rose to $200,000 from $175,000.

Brokers attribute the improving national market to factors such as an aging population that is ready to sell and more financially stable buyers.

“We’ve heard from our broker customers that they are seeing more qualified buyers capable of taking over the reins from sellers, specifically baby boomers ready to retire,” House said in a statement. “Supply-and-demand fundamentals, combined with the improving financial performance of small businesses in general, should drive growth through the rest of the year.”

At the national level, 1,830 small businesses were reported sold during this year’s first quarter – up 6 percent from last year.

Email: anzidei@northjersey.com