Greater Princeton Real Estate Market Sept 18 09

Real Estate is Local! Know the Market Local Market Update September 15, 2009

Market Confidence Meter

Mercer County overall has 8 months’ housing inventory available, compared with 17 months statewide at the start of the year.

According to the Mortgage Bankers Assoc., mortgage applications surged 17% the first week of September. Some were re-financings taking advantage of low interest rates, but purchase loans were up 9.5%.

By spring 2009, the NJ Housing Affordability Index for those buying the median home was 107%. (An index above 100 tells us that a family earning the median income more than qualifies for a mortgage on a median-priced home, assuming a 20% down payment.)

The situation in NJ has only improved since then.

The average 30-year, fixed rate mortgage for buyers with 20% down-payment and good credit, was just over 5% with 1.23 points.

We are losing jobs nationally at a slower rate than at the beginning of the year.

Sample Market Absorption Rate Calculation 108 current active listings 12 reported sales in last 30 days = 9 months absorption rate 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 & Demand High Supply/Low Demand Low Supply/High Demand Normal 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. Beyond 12 month’s absorption rate, we cannot statistically validate the annual depreciation in a market . Market Absorption in Months 1 2 3 4 5 6 7 8 9 10 11 12 Normal

Town by Town Analysis 9/18/09 Towns Active Listings Pending 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 29 2 14.4 7 (9) - - 0 3 13 Princeton Boro Condo/ Thouses 10 0 999 4 (1) - - 0 2 3 Princeton Boro Single Family 19 2 9.5 3 (8) - - 0 1 10 Princeton Twp: All Styles 110 5 22 17 (21) - - 5 10 23 Princeton Twp: Condo/ Thouses 10 1 10 2 (5) - - 2 1 4 Princeton Twp: Single Family 100 4 25 15 (16) - - 3 9 19

Town by Town Analysis 9/15/09 Towns Active Listings Pending 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 100 25 4 32 7 20 20% 17 5 32 West Windsor Condo/ T.Houses 15 8 1.8 6 (2) 4 26% 5 0 6 West Windsor 55+ 13 0 99 - - - - - - - West Windsor Single Family 72 17 10.2 26 9 16 22 12 5 26 Lawrence: All Styles 196 27 7.2 55 28 38 19% 16 3 33 Lawrence: Condo/ THouses 89 11 8 24 13 18 20% 9 1 10 Lawrence: 55+ 26 0 99 - - - - - - - Lawrence: Single Family 81 16 5.0 31 15 20 24% 7 2 23

Town by Town Analysis 9/15/09 Towns Active Listings Pending 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 234 31 7.5 49 18 54 23% 23 2 27 Ewing : Condo/ T.Houses 41 7 5.8 13 6 8 19% 7 0 9 Ewing 55+: 4 0 99 - - - - - - - Ewing: Single Family 189 24 7.8 36 12 46 24% 16 2 18 East Windsor: All Styles 184 35 5.2 41 6 26 14% 14 2 33 East Windsor: Condo/ THouses 106 18 5.8 30 12 16 17% 11 0 17 East Windsor: 55+ 18 0 99 - - - - - - - East Windsor: Single Family 60` 17 3.5 11 (6) 10 17 3 2 16

Town by Town Analysis 9/15/09 Towns Active Listings Pending 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 166 17 10 29 12 32 19% 15 7 14 Hopewell Twp. Condo/ T.Houses 22 6 4 3 (3) 4 18% 1 0 7 Hopewell Twp.: 55+ 4 0 99 - - - - - - - Hopewell Twp: Single Family 140 11 13 26 15 28 20% 14 7 7 Hamilton: All Styles 540 85 6 104 19 122 23% 49 16 75 Hamilton Condo/ THouses 100 17 6 28 11 27 27% 13 2 17 Hamilton: Single Family 400 66 6 76 10 95 24% 36 14 58 Hamilton: 55+ 40 2 20 - - - - - - -

Market Activity: Town by Town Analysis 9/15/09 Towns Active Listings Pending 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 72 10 7.2 20 10 8 11% 7 0 21 Plainsboro Condo/ THouses 41 7 5.8 11 4 4 9% 4 0 15 Plainsboro 55+ 12 0 99 2 2 2 16% 1 0 1 Plainsboro Single Family 19 3 6.33 7 4 2 10% 2 0 5 Cranbury: All Styles 30 1 30 2 1 3 10% 2 0 3 Cranbury: 55+ 5 1 5 0 (1) 0 0 0 0 0 Cranbury: Single Family 25 0 99 2 2 3 12% 2 0 3

Town by Town Analysis 9/15/09 Towns Active Listings Pending 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 211 20 10 47 27 32 15% 25 3 1 South Brunswick Condo/ T’Houses 70 9 7 19 10 10 14% 8 2 1 South Brunswick 55+ 33 0 99 2 2 5 15% 3 0 0 South Brunswick Single Family 108 11 10 21 10 17 15% 14 1 0 Monroe All Styles 505 28 18 89 61 89 18% 41 4 5 Monroe 55+ 335 20 17 56 36 64 19% 26 4 4 Monroe Single Family 172 8 22 33 24 25 15% 15 0 2 Towns Active Listings Pending 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 Robbinsville All Styles 105 19 6 27 8 17 16% 13 4 17 Robbinsville Condo/ T.Houses 48 10 5 10 0 8 17% 5 1 9 Robbinsville 55+ - - - - - - - - - - Single Family 57 9 6 17 8 9 16% 8 3 8 Hightstown All Styles 57 2 26 9 7 9 16% 7 4 3 Pennington 24 2 12 5 3 6 25% 4 1 4 Hopewell Boro: All Styles 7 3 2 2 (1) 1 14% 2 0 1

Town by Town Analysis 9/15/09 Towns Active Listings Pending 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 196 23 8 48 24 64 32% 20 3 38 South Brunswick Condo/ T.Houses 64 10 7 20 10 18 28% 6 0 14 South Brunswick 55+ 30 1 30 1 0 13 41% 1 1 3 South Brunswick Single Family 102 12 8.5 27 15 33 43% 13 1 21 Monroe: All Styles 472 33 14 103 70 217 47% 56 1 51 Monroe: 55+ 303 22 12 68 46 145 45% 25 1 41 Monroe: Single Family 168 11 25 35 24 72 42% 21 0 10

Town by Town Analysis 9/18/2009 Lower Somerset County Towns Active Listings Pending 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 Montgom-ery 137 20 6.85 28 28 0 Hillsboro 258 32 8.1 64 31 33 Rocky Hill 29 0 999 2 2 0 Franklin 386 69 5.6 94 34 60

As of 11:07 a.m. September 18 , there are just 73 days, 13 hours, and 47minutes until the expiration of the $8,000 first time buyer tax credit!

Regional Market Update Seminar