greater princeton market update june 29 2010
DESCRIPTION
Data and on Regional Real Estate Markets, Interest Rates,TRANSCRIPT
Historic Home Prices
When adjusted for inflation, American home prices increased by an average of about half a percentage point per year from 1890 through
2008, according to data compiled by Yale University Professor Robert Shiller.
(www.USNews.com/money - Luke Mullins, March 4, 2010)
Home Prices Now
Now, however, as a result of many economic factors since 2008, the median
American home prices have settled back to 2003 levels.
Source: Case Schiller Non-Seasonally Adjusted Composite 20 U.S. Home
Price Index as of March 2010
1. Real Estate is Local
Top Five Rules for Understanding the Real
Estate Market:
2. Real Estate is Local
3. Real Estate is Local
4. Real Estate is Local5. Real Estate is Local
Understand the Local Market That
You are Buying into/ Selling out of…
Market Absorption Scale(Absorption Rate in Months)
5-6 months absorption rate indicates a normal market.
Sample Market Absorption RateSample Market Absorption Rate
100 current active listings
4 reported sales in last 30 days=
25Months’
absorptionrate
Anytown., NJ
5-6 Months Market Absorption Rate indicates a normal market.
Market Scale for Supply & Market Scale for Supply & DemandDemand
High Supply/Low Demand Low Supply/High DemandNormal
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Weichert has been studying market conditions for more than 3 decades and has found a direct correlation between market absorption and property values.
As absorption rates increase beyond a normal market level of 5-6 months, property values depreciate annually.
6/21/10Towns Active
ListingsPending in Last 30 Days
Absorption Rate in Months
New Listings in 30 Days
Net Gain (Loss) to Market
Listings Reduced in 30 Days
% of Invent. Reduced
Expired Listings
W/drawn Listings
Closed Listings
Princeton Boro: All Styles
55 1 55 9 5 11 20% 1 2 6
Pton -Boro Condo/ Thouses
19 0 99 3 1 7 36.8% 1 1 3
Pton-BoroSingle Family
36 1 36 6 4 4 11.1% 0 1 3
Pton Twp: All Styles 142 11 12.9 23 4 24 16.9% 3 5 20
Pton Twp: Condo/ Thouses
11 2 5.5 3 1 2 18.2% 0 0 6
Pton Twp:Single Family
131 9 14.6 20 5 22 16.8% 3 5 14
6/21/10Towns Active
ListingsPending in Last 30 Days
Absorption Rate in Months
New Listings in 30 Days
Net Gain (Loss) to Market
Li1stings Reduced in 30 Days
% of Invent. Reduced
Expired Listings
W/drawn Listings
Closed Listings
West Windsor: All Styles
160 15 10.7 42 18 44 27.5% 4 5 33
West Windsor Condo/ T.Houses
26 3 8.7 6 1 14 53.8% 2 0 15
West Windsor55+
12 3 4 2 -1 - -- 0 0 2
West Windsor Single Family
122 9 13.6 34 18 30 24.5% 2 5 16
Lawrence: All Styles
254 13 19.5 52 24 50 19.7% 5 10 36
Lawrence:Condo/THouses
72 6 12 17 6 21 29.2% 2 3 11
Lawrence: 55+
27 0 99 5 4 - -- 0 1 3
Lawrence: Single Family
155 7 22.1 30 14 29 18.7% 3 6 22
6/21/10Towns Active
ListingsPending in Last 30 Days
Absorption Rate in Months
New Listings in 30 Days
Net Gain (Loss) to Market
Listings Reduced in 30 Days
% of Invent. Reduced
Expired Listings
W/drawn Listings
Closed Listings
PlainsboroAll Styles
84 11 7.3 31 20 10 12% 6 1 19
PlainsboroCondo/ THouses
40 5 8 10 5 4 10% 5 0 11
Plainsboro55+
18 0 99 5 5 1 5% 0 0 0
PlainsboroSingle Family
26 6 4.3 13 7 5 19% 1 1 8
Cranbury:All Styles
23 4 5.75 2 -2 6 26% 3 0 5
Cranbury:55+
1 2 .5 0 2 1 100% 0 0 0
Cranbury: Single Family
22 2 11 2 0 5 23% 3 0 5
6/21/10Towns Active
ListingsPending in Last 30 Days
Absorption Rate in Months
New Listings in 30 Days
Net Gain (Loss) to Market
Listings Reduced in 30 Days
% of Invent. Reduced
Expired Listings
W/drawn Listings
Closed Listings
Ewing: All Styles
284 15 18.9 49 12 58 20.4 15 7 35
Ewing : Condo/ T.Houses
43 2 22.5 6 1 5 11.6 2 1 9
Ewing 55+:
9 0 99 2 2 - -- 0 0 0
Ewing:Single Family
232 13 17.8 41 9 53 22.8 13 6 26
East Windsor:All Styles
210 5 42 43 20 42 20% 9 9 19
East Windsor:Condo/ THouses
117 1 117 26 13 21 17.9% 8 4 6
East Windsor:55+
20 2 10 2 -2 - -- 0 2 0
East Windsor: Single Family
73 2 36.5 15 9 21 28.8% 1 3 13
6/21/10Towns Active
ListingsPending in Last 30 Days
Absorption Rate in Months
New Listings in 30 Days
Net Gain (Loss) to Market
Listings Reduced in 30 Days
% of Invent. Reduced
Expired Listings
W/drawn Listings
Closed Listings
Hopewell Twp.All Styles
186 27 7 31 4 57 31% 11 8 24
Hopewell Twp. Condo/ T.Houses
18 5 3.6 3 (2) 5 28% 1 0 7
Hopewell Twp.:55+
9 3 3 - - - - - - -
Hopewell Twp Single Family 159 19 8 28 9 52 33% 10 8 17
Hamilton: All Styles 638 51 13 120 69 170 27% 40 18 81
Hamilton:Condo/ THouses 110 15 7 24 9 32 29% 13 5 24
Hamilton:Single Family 483 35 14 96 61 138 29% 27 13 57
Hamilton: 55+45 1 45 - - - - - -
6/21/10Towns Active
ListingsPending in Last 30 Days
Absorption Rate in Months
New Listings in 30 Days
Net Gain (Loss) to Market
Listings Reduced in 30 Days
% of Invent. Reduced
Expired Listings
W/drawn Listings
Closed Listings
RobbinsvilleAll Styles 146 18 8 35 17 32 22% 4 9 19
RobbinsvilleCondo/ T.Houses
78 10 7.8 20 10 14 18% 2 4 14
Single Family68 8 8.5 15 7 18 26% 2 5 5
Hightstown Boro: All Styles
79 6 13 13 7 14 18% 5 5 5
Pennington27 2 13.5 2 0 10 37% 0 2 3
Hopewell Boro24 1 24 5 4 5 21% 1 1 2
6/21/10Towns Active
ListingsPending in Last 30 Days
Absorption Rate in Months
New Listings in 30 Days
Net Gain (Loss) to Market
Listings Reduced in 30 Days
% of Invent. Reduced
Expired Listings
W/drawn Listings
Closed Listings
South
Brunswick
All Styles
222 20 11.1 43 23 25 11% 17 4 30
South BrunswickCondo/ T.Houses
68 11 6.2 20 9 19 28% 7 1 13
South Brunswick
55+
30 0 99 6 6 1 3% 1 2 0
South Brunswick
Single Family
124 15 8.3 17 2 15 12% 9 1 17
Monroe:
All Styles 479 50 9.6 116 66 114 24% 40 2 52
Monroe:
55+ 307 30 10.2 82 52 59 19% 23 0 38
Monroe:
Single Family 172 20 8.6 34 14 55 32% 17 2 14
6/21/10Towns Active
ListingsPending in Last 30 Days
Absorption Rate in Months
New Listings in 30 Days
Net Gain (Loss) to Market
Listings Reduced in 30 Days
% of Invent. Reduced
Expired Listings
W/drawn Listings
Closed Listings
Montgomery
All Styles 158 17 9 37 (10) 48 30% 6 11 30
Montgomery
Condo/Twnhms
24 2 12 7 (6) 5 21% 1 4 8
Single Family 134 15 9 30 (4) 43 32% 5 7 22
Hillsborough
All Styles 248 23 11 55 13 39 16% 5 7 30
Hillsborough
Condo/Twnhms
95 6 16 20 6 15 16% 0 3 11
Hillsborough
Single Family 153 17 9 35 7 24 23% 5 4 19
Fed Drives Rates to Fed Drives Rates to Record Lows!Record Lows!
Source: Weichert, Realtors Financial Services
Over the past few weeks, interest rates have hit the lowest point since official tracking began in
1969—hitting 4.75% for 30-year fixed rate mortgages with no points, and 3.875% for 15-year fixed rate mortgages with 1 point.
What happens now?What happens now?
These historically low mortgage interest rates, lower home prices, and a good number of
homes to choose from, combined with recovering labor markets should revive sales
and housing starts once the recent dip owing to the expiration of the Federal homebuyer
tax credit is behind us.
Strategies to Buy:
Understand the complete financial picture—the mortgage-interest tax deduction,
the real estate tax deduction, appreciating home value over time—
when buying a home.