Bunn Moxley WMD Index
To this end, we also are launching a monthly Bunn Moxley Westfield/Midtown Direct index (“WMD”) to help you identify area price trends. The WMD Index covers six towns – Westfield plus Millburn-Short Hills, Summit, Chatham, Madison and New Vernon. While each of the WMD towns comprising our index is distinctly different, we believe an overall number gives you a sense of macro trends.
Home Sale Prices in the WMD Area are generally stable in 2012 – after falling approximately 15% since 2010. The average WMD Home Sale Price in April was $798,084, down from $957,238 in April 2010 and from $884,154 in April 2011. The two towns that have exceeded 2010 price levels are Millburn and Madison. Here are the Charts:
But there is plenty of good news, especially in 2012. First, activity this year has picked up dramatically. Summit, Short Hills and Westfield home closings, for example, spiked in April to a three year monthly high.
And Summit, Madison and Westfield recorded the lowest monthly “days on the market” in three years. Madison’s “days on the market” declined from 144 in February to just 44 in April. Summit and Madison also enjoyed Sale Price to List Price ratios above 98% – in Madison’s case up from 89% in 2010.
At the top end, Short Hills still commands a 40% premium over WMD towns, with Madison taking the second spot for two of the last three months.
We have argued for some time that Madison is undervalued. This analysis seems to confirm that Madison is being positively re-rated. Investors and home buyers might want to keep an eye on this.
After reviewing the charts below, if you would like further information, please feel free to call. We generally give our clients a several day preview before we publish our reports. If you would like to receive an advance copy, please add your name to our home price trend preview list.