Inventory Levels

Housing Absorption Rate

The formula used to calculate supply vs. demand is the number of homes actively on the market in relationship to the number of sold units; this number represents the number of months it would take to move, sell what is currently on the market. Case-Shiller Index represent that when inventories fall blow 8 month one will see price stabilization, if inventories fall below 6 month home prices are apt to appreciate.

The following monthly  represent single family homes, condos excluded as of January 12, 2010. In February I will break these numbers down by price points.

Summit 4 months

Short Hills 3.5 months

Madison: 5.5 months

Chatham B 3 months

Chatham T 6 months

New Providence 3.5 months

Berkeley Heights 3 months

Bernards Township  6 months

Watchung 8 months

Westfield   4 months

Long Hill   11 months

Warren 12 months