greater princeton nj real estate market update
DESCRIPTION
Information and data on the summer real estate market in the greater Princeton, NJ area.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…
How do we assess vitality in our real estate markets?
By checking the Absorption Rate. It is the number of homes available in the market
divided by the number of homes that have gone under contract
in the past 30 days.
It is our most accurate measure of current market strength.
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 Absorption Scale(Absorption Rate in Months)
5-6 months absorption rate indicates a normal market.
Market Scale for Supply & Market Scale for Supply & DemandDemand
High Supply/Low Demand Low Supply/High DemandNormal
Ma
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ths 1
2
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No
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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.
8/9/10Towns 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 61 1 61 10 9 13 21.3% 1 0 5
Pton -Boro Condo/ Thouses 27 1 27 8 7 7 25.9% 1 0 2
Pton-BoroSingle Family 34 0 99 3 3 6 17.6% 0 0 3
Pton Twp: All Styles 131 11 11.9 15 4 28 21.4% 4 7 13
Pton Twp: Condo/ Thouses 12 2 6 3 1 1 8.3% 1 1 3
Pton Twp:Single Family 119 9 13.2 12 3 27 22.7% 3 6 10
8/9/10Towns 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
West Windsor: All Styles
139 22 6.3 27 5 37 26.6% 7 7 30
West Windsor Condo/ T.Houses
22 6 3.7 5 -1 2 9% 1 0 8
West Windsor55+
9 1 9 2 1 -- -- 0 5 1
West Windsor Single Family
108 15 7.2 20 5 35 32.4% 6 2 21
Lawrence: All Styles
235 13 18.1 34 21 53 22.6% 7 16 26
Lawrence:Condo/THouses
72 5 14.4 14 9 23 32% 3 8 7
Lawrence: 55+
21 1 21 3 2 -- -- 1 1 5
Lawrence: Single Family
142 7 20.3 17 10 30 21.1% 3 7 14
8/9/10Towns 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
298 12 24.8 50 38 74 24.8% 15 10 13
Ewing : Condo/ T.Houses
47 2 23.5 8 6 12 25.5% 4 2 1
Ewing 55+:
6 2 3 0 -2 -- -- 1 0 0
Ewing:Single Family
245 8 30.6 42 34 62 25.3% 10 8 12
East Windsor:All Styles
228 8 28.5 42 34 43 18.8% 14 5 10
East Windsor:Condo/ THouses
128 5 25.6 23 18 17 13.3% 7 1 4
East Windsor:55+
21 0 99 2 2 -- -- 2 0 2
East Windsor: Single Family
79 3 26.3 17 14 26 32.9% 5 4 4
8/9/10Towns 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
168 17 10 33 16 30 18% 14 17 24
Hopewell Twp. Condo/ T.Houses
13 2 6.5 4 2 3 23% 1 3 5
Hopewell Twp.:55+
11 0 99 - - - - - - -
Hopewell Twp Single Family 144 15 10 29 14 27 19% 13 14 19
Hamilton: All Styles 635 51 12 116 65 166 26% 51 22 49
Hamilton:Condo/ THouses 114 9 13 29 20 28 25% 11 4 12
Hamilton:Single Family 474 42 11 87 45 138 29% 40 18 37
Hamilton: 55+47 0 99 - - - - - - -
8/9/10Towns 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 153 14 11 28 14 36 24% 16 4 14
RobbinsvilleCondo/ T.Houses
73 10 7.3 10 0 18 25% 9 2 8
Single Family80 4 20 18 14 18 23% 17 2 6
Hightstown Boro: All Styles
73 1 73 12 11 15 21% 4 5 2
Pennington17 4 4 2 (2) 2 12% 0 3 1
Hopewell Boro18 4 5 0 (4) 3 17% 0 1 3
8/9/10Towns 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
239 13 18 43 30 43 18% 26 3 18
South BrunswickCondo/ T.Houses
76 3 25 18 15 17 22% 4 7 9
South Brunswick
55+
29 5 6 3 -2 2 6% 4 3 0
South Brunswick
Single Family
134 5 27 23 18 24 18% 18 19 9
Monroe:
All Styles 480 31 13 83 52 90 19% 21 51 43
Monroe:
55+ 294 22 4 44 22 65 22% 3 30 27
Monroe:
Single Family 186 9 21 39 30 25 13% 18 21 16
8/9/10Towns 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 162 12 13.5 27 -14 51 31% 8 8 25
Montgomery
Condo/Twnhms 23 4 6 6 3 4 17% 2 1 0
Single Family139 8 17 21 -17 47 34% 6 7 25
Hillsborough
All Styles 265 27 10 66 21 67 25% 15 9 21
Hillsborough
Condo/Twnhms 92 14 6.5 19 5 22 24% 3 4 7
Hillsborough
Single Family 173 13 13 47 16 45 26% 12 5 14
Incredibly Low Interest Incredibly Low Interest RatesRates
Source: Weichert, Realtors Financial Services
Over the past few weeks, interest rates have hit
the lowest point since official tracking began—
hitting 4 3/8 %
for 30-year fixed rate mortgages
with no points.
What happens now?What happens now?
These historically low mortgage interest rates, lower home prices, and a good number of
homes to choose from, 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.