The New Jersey Multiple Listing Service (NJMLS) announced that year-to-date statistics through August 2007 show that regional housing inventory has stabilized and that selling prices in 30 percent of the 120 total towns in Bergen, Passaic, Essex and Hudson counties experienced average increases in selling prices over 2006. The most recent data demonstrates that the most significant regional impact of the much publicized national housing downturn occurred in 2006. "The bottom line, based on NJMLS statistics, is that we are not seeing the rate of downturn reported nationally," said Nelson Chen, president of the NJMLS and a real estate broker with 21 years experience. "Northern New Jersey, with its international diversity and proximity to Manhattan, continues to show strength. While we acknowledge that there are some pockets or weakness, prices have gone up in many areas including: Cresskill, Park Ridge, Rutherford (Bergen County), Livingston, West Caldwell, Verona(Essex County), and Weehawken, West New York, Jersey City(Hudson County). And in the other areas, prices are holding steady. "Overall, the data supports our contention that conditions are favorable for buyers and for sellers who price correctly. Realtors have been educating their clients that this is a different market, and as a result, most sellers have adjusted their prices to reflect market conditions. However, we're still seeing evidence that some homeowners are clinging to 2005 prices. It is important for consumers to know that properties with realistic pricing are attracting buyer interest in our region." 2006-2007 Stabilization Trends In evaluating the state of the local real estate market, the NJMLS focuses on key indicators including: the number of new listings (inventory), the number of properties sold and average sales price. To understand where the market is today, the statistics are compared to activity during previous years. Conditions Key findings include: Through the end of August 2007, the market is showing signs of stabilization. For Bergen, Passaic, Essex and Hudson counties, the number of new listings increased by 3.4 percent, while the number of properties sold decreased slightly by 2.3 percent. NJMLS data also showed that while the average sales price decreased, it did so by 1.1 percent. "It is important to remember that the period prior to 2006 represented a historical run up in average selling price. When the market slowed in 2006, the number of properties on the market grew significantly, and Realtors were selling fewer houses," Chen said. "As we close the third quarter of 2007, prices are more realistic, and interest rates remain attractive. In fact, consumers with food credit can get a great rate. We stand by our contention that now is a good time to buy or sell in our region." Data for Comparison to Year-to-Date Statistics From 2004 to 2005, the number of listings in Bergen, Passaic, Essex and Hudson counties increased by 7.7 percent, and the average sales price grew by 12.7 percent. From 2005 to 2006, the number of listing in Bergen, Passaic, Essex and Hudson counties increased by 23.2 percent, the number of properties sold fell by 12.1 percent, and the average sales price slowed to a growth rate of 6.1 percent. It is during this period that the market began to return to a more normal state., Sellers hoping to capitalize on the tremendous performance of the previous year flooded the market. Many set aggressive asking prices based upon previous years' appreciation rates. However, interest rates increased slightly, causing many properties to become overpriced. Buyer activity slowed and days on market increased.