Greater Princeton NJ Real Estate Market October 2012
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Greater Princeton NJ Real Estate Market October 2012

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Data on the Princeton NJ real estate market as of October 5, 2012

Data on the Princeton NJ real estate market as of October 5, 2012

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  • Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
  • Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
  • Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
  • Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
  • Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
  • Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.

Greater Princeton NJ Real Estate Market October 2012 Greater Princeton NJ Real Estate Market October 2012 Presentation Transcript

  • Market Confidence Meter By the end of July, housing prices in all 20 cities of the S&P/Case Shiller index showed increases over the prior month. New home sales are up 27.7% from 2011 with prices showing the largest monthly increase since 1963.
  • Market Confidence Meter The National Association of Realtors is now forecasting overall home sales up 8% for 2012. The inventory of existing homes for sale is at 6.1 months supply, indicating a balanced market for both buyers and sellers,.
  • Market Confidence Meter “Housing is no longer a negative. It is turning positive, and we see the data reflecting that,” said Ivy Zelman, chief executive at the research firm Zelman & Associates.
  • Market Confidence Meter The Federal Reserve will continue boosting housing market recovery by purchasing $40 Billion/month of mortgage-backed securities and keeping downward pressure on interest rates.
  • Market Confidence Meter In New Jersey, home purchases were up 24% in July, the 10th consecutive month of increases, accompanied by a 17% drop in inventory, according to Jeffrey Otteau of the Otteau Valuation Group. Median prices are up, suggesting statewide increases for the second quarter of 2012, reported Otteau.
  • Market Confidence Meter The average rate on a 30-year, fixed rated mortgage fell to 3.4% by late September, according to Freddie Mac. At these rates, and with rising rents, Homeownership is now cheaper than Renting in all 100 of the largest U.S. metros by a wide margin, reported Trulia!
  • Historic Home Prices Remember, when adjusted for inflation, American home pricesincreased 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)
  • With an eye to Moving This Year!If you are a Buyer,• with today’s low interest rates, hovering around 3.4% for 30-year fixed-rate mortgages, AFFORDABILITY is HIGH !• consult with an experienced New Jersey mortgage counselor to assess your buying power and position yourself in the market.If you are a Seller,• Pinpoint pricing is all important in this challenging market.• Professional staging can make all the difference in getting a good, negotiable offer.• Pre-inspections prevent later fall-throughs once you have a contract for sale!• Marketing for today’s buyers and the way they search for homes–on the INTERNET, makes all the difference.
  • Top Five Rules for Understanding the Real Estate Market: 1. Real Estate is Local 2. Real Estate is Local 3. Real Estate is Local 4. Real Estate is Local. 5. Real Estate is Local
  • Understand the Local Market That You are Buying into or Selling out of!
  • How do we assess strength and vitality in our real estate markets?By checking the “Absorption Rate.”This is the number of homes available 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 Rate Anyt ow n., NJ 100 cur r ent act ive list ings 25 = Mont hs’ 4 r epor t ed sales in last 30 days absor pt ion r at e5-6 Months Market Absorption Rate indicates a normal market.
  • 13Market Absorption Scale (Absorption Rate in Months)
  • Market Scale for Supply & Demand Weichert, Realtors has been studying market 1 conditions for more than 3Market Absorption in Months decades and has found a 2 direct correlation between 3 market absorption rates and property values. 4 As absorption rates increase 5 beyond a normal market Normal level of 5-6 months, 6 property values depreciate annually. As they decrease 7 below 5 months, they increase—inverse 8 proportion. Although 9 different markets may not see the amount of decrease 10 shown here, the pressure on prices will be similar. 11 12
  • 10/2/12Towns Active Pending Absorption New Listings Net Gain Listings % of Expired W/drawn Closed Listings in Last Rate in in 30 Days (Loss) to Reduced in Invent. Listings Listings Listings 30 Days Months Market 30 Days ReducedWestWindsor: 113 16 7.1 24 8 30 26.5% 1 10 31All StylesWestWindsor 23 4 5.8 6 2 7 30.4% 0 2 10Condo/T.HousesWestWindsor 14 1 14 3 2 _ _ 0 0 255+WestWindsor 76 11 6.9 15 4 23 30.3% 1 8 19SingleFamilyLawrence:All Styles 170 7 24.3 28 21 40 23.5% 15 7 19Lawrence:Condo/ 50 4 12.5 6 2 20 40.0% 4 2 7THousesLawrence:55+ 12 1 12 4 3 _ _ 2 0 0Lawrence:Single 108 2 54 18 16 20 18.5% 9 5 12Family
  • 10/2/12Towns Active Pending Absorption New Net Gain Listings % of Expired W/drawn Closed Listings in Last Rate in Listings in (Loss) to Reduced in Invent. Listings Listings Listings 30 Days Months 30 Days Market 30 Days ReducedEwing:All Styles 246 14 18 49 35 41 17% 20 9 17Ewing :Condo/ 28 4 7 8 4 4 14% 6 1 2T.HousesEwing55+: 5 1 5 2 1 --- --- 0 0 1Ewing:Single 213 9 24 39 30 37 17% 14 8 14FamilyEastWindsor: 175 20 9 28 8 43 25% 7 7 24All StylesEastWindsor: 98 10 10 13 3 27 28% 4 3 12Condo/ThousesEastWindsor: 14 0 999 3 3 --- --- 0 0 555+EastWindsor: 63 10 6 12 2 16 25% 3 4 7SingleFamily
  • 10/2/12Towns Active Pending Absorption New Net Gain Listings % of Expired W/drawn Closed Listings in Last Rate in Listings in (Loss) to Reduced in Invent. Listings Listings Listings 30 Days Months 30 Days Market 30 Days ReducedHopewellTwp. 139 14 9.9 28 14 29 20.1% 13 10 25All StylesHopewellTwp. Condo/ 14 5 2.8 4 -1 2 14.3% 0 1 6T.HousesHopewellTwp.: 4 0 00 0 0 -- -- 0 0 355+Hopewell TwpSingle Family 121 9 13.4 24 15 27 22.3% 13 9 16 482 51 9.5 83 32 116 24.1% 24 27 66Hamilton: AllStyles 81 10 8.1 10 0 19 23.5% 5 6 8Hamilton:Condo/ THouses 19 6 3.2 4 -2 -- -- 2 0 4Hamilton:55+ 382 35 10.9 69 34 97 25.4% 17 21 54Hamilton:Single Family
  • 10/2/12Towns Active Pending Absorption New Net Gain Listings % of Expired W/draw Closed Listings in Last Rate in Listings (Loss) to Reduce Invent. Listings n Listings 30 Days Months in 30 Market d in 30 Reduced Listings Days Days 90 18 5 21 3 25 28% 5 10 25RobbinsvilleAll Styles 45 11 4 11 0 11 24% 5 8 16RobbinsvilleCondo/T.Houses 45 7 6 10 3 14 31% 0 7 9Single Family 55 4 14 10 6 3 5% 4 1 4HightstownBoro: AllStyles 23 3 8 3 0 4 17% 1 1 6Pennington 10 7 1.4 4 (3) 1 10% 0 1 2Hopewell Boro
  • 10/2/12Towns Active Pending Absorption New Net Gain Listings % of Expired W/draw Closed Listings in Last Rate in Listings in (Loss) to Reduced Invent. Listings n Listings 30 Days Months 30 Days Market in 30 Reduced Listings DaysPrincetonBoro: 35 4 8.8 10 6 5 14.3% 1 2 7All StylesPrinceton-Boro Condo/ 13 2 6.5 1 -1 3 23% 0 2 6ThousesPrinceton-Boro 22 2 11 9 7 2 9.1% 1 0 1Single FamilyPrincetonTwp: All 132 1 132 21 20 24 18.2% 2 6 20StylesPrincetonTwp: Condo/ 18 1 18 6 5 4 22.2% 0 1 5ThousesPton Twp:Single Family 114 0 99 15 15 20 17.5% 2 5 15
  • 10/2/12Towns Active Pending Absorption New Net Gain Listings % of Expired W/drawn Closed Listings in Last Rate in Listings in (Loss) to Reduced Invent. Listings Listings Listings 30 Days Months 30 Days Market in 30 Days ReducedSouthBrunswick 215 22 16 24 2 73 34 16 3 46All StylesSouthBrunswickCondo/ T.Houses 71 6 12 9 3 38 52 10 1 17SouthBrunswick 30 1 30 2 1 2 7 0 0 355+SouthBrunswick 114 15 8 13 -2 33 29 6 2 26Single FamilyMonroe:All Styles 452 24 19 97 73 104 23 25 6 80Monroe:55+ 284 16 20 65 49 78 13 14 1 15Monroe:Single Family 168 8 21 32 24 24 14 29 5 15