3. Market Confidence Meter According to the National Association of Realtors, sales of existing homes rose 6.8 percent in March and were 16.1 percent higher than in March 2009!
4.
5. 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 Local 5. Real Estate is Local
6. Listings from the MLS in Weichert Market Areas In our local area (CT/NY/NJ Lehigh Valley, PA), the number of homes for sale (Weichert and non-Weichert listings) has steadily increased over the past four years.
7. 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. Market Absorption in Months 1 2 3 4 5 6 7 8 9 10 11 12 Normal
8. 4/27/10 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 160 29 5.5 66 27 49 30.6 5 5 19 West Windsor Condo/ T.Houses 39 6 6.5 19 10 10 25.6 0 3 8 West Windsor 55+ 17 3 5.7 3 0 -- -- 0 0 0 West Windsor Single Family 104 20 5.2 44 17 39 37.5 5 2 11 Lawrence: All Styles 242 22 11 57 22 73 30.2 6 7 21 Lawrence: Condo/ THouses 74 9 8.2 25 13 35 47.3 1 2 10 Lawrence: 55+ 24 1 24 3 1 -- -- 0 1 2 Lawrence: Single Family 144 12 12 29 8 38 26.4 5 4 9
9. 4/27/10 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 77 19 4 33 7 12 15% 7 0 10 Plainsboro Condo/ THouses 40 10 4 17 2 8 20% 5 0 8 Plainsboro 55+ 11 0 11 7 6 1 9% 1 0 0 Plainsboro Single Family 26 9 2.8 9 -1 3 11% 1 0 2 Cranbury: All Styles 29 0 99 9 7 6 20% 2 0 0 Cranbury: 55+ 1 0 99 1 1 -- -- 0 0 0 Cranbury: Single Family 28 0 99 8 6 6 21% 2 0 0
10. 4/27/10 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 258 21 12.3 74 30 65 25.2% 16 7 21 Ewing : Condo/ T.Houses 43 3 14.3 13 7 9 20.9% 1 2 4 Ewing 55+: 6 0 99 1 1 -- -- 0 0 0 Ewing: Single Family 209 18 116 60 22 56 26.8% 15 5 17 East Windsor: All Styles 195 10 19.5 41 22 40 20.5% 5 4 17 East Windsor: Condo/ THouses 107 5 21.4 27 17 21 19.6% 2 3 10 East Windsor: 55+ 22 0 99 2 2 -- -- 0 0 0 East Windsor: Single Family 66 5 13.2 12 3 19 28.8% 3 1 7
11. 4/27/10 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 183 30 6 59 29 39 21% 7 12 11 Hopewell Twp. Condo/ T.Houses 19 9 2 15 6 8 42% 1 2 1 Hopewell Twp.: 55+ 9 1 9 Hopewell Twp Single Family 155 20 8 44 24 31 20% 6 10 10 Hamilton: All Styles 606 96 6 159 63 183 30% 30 14 57 Hamilton: Condo/ THouses 124 20 6 39 19 49 40% 5 3 21 Hamilton: Single Family 441 72 6 120 48 134 30% 25 11 36 Hamilton: 55+ 40 4 10
12. 4/27/10 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 133 24 6 47 23 42 32% 6 5 6 Robbinsville Condo/ T.Houses 68 17 4 24 7 24 35% 1 3 5 Single Family 65 7 9 23 16 18 28% 5 2 1 Hightstown Boro: All Styles 75 1 75 13 12 20 27% 4 5 2 Pennington 27 4 7 11 7 4 15% 0 2 5 Hopewell Boro 22 2 11 6 4 6 27% 1 0 3
13. 4/27/10 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 55 3 18.3 18 15 8 14.5 0 0 4 Pton -Boro Condo/ Thouses 22 1 22 7 6 3 13.6 0 0 1 Pton-Boro Single Family 33 2 16.5 1 9 5 15.6 0 0 3 Pton Twp: All Styles 135 9 15 35 21 29 21.5 0 5 8 Pton Twp: Condo/ Thouses 14 3 4.7 2 -2 2 14.3 0 1 3 Pton Twp: Single Family 121 6 20.2 33 23 27 22.3 0 4 5
14. 4/27/10 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 216 21 11 69 48 47 21% 15 2 29 South BrunswickCondo/ T.Houses 67 11 76 31 20 17 6% 7 0 13 South Brunswick 55+ 27 0 27 3 3 2 2% 4 1 6 South Brunswick Single Family 122 10 12 32 22 27 22% 5 1 10 Monroe: All Styles 441 33 13 109 76 63 14% 32 5 48 Monroe: 55+ 262 23 12 71 48 32 12% 13 2 36 Monroe: Single Family 179 10 17 38 2 31 17% 19 3 12
15. 4/27/10 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 Montgomery All Styles 158 19 8.3 60 38 39 25% 5 5 12 Montgomery Condo/Twnhms 27 4 6.7 16 9 6 22% 1 3 3 Single Family 131 15 8.7 44 28 33 25% 4 2 9 Hillsborough All Styles 228 41 5.5 71 30 57 25% 9 6 26 Hillsborough Condo/Twnhms 93 13 7.1 36 20 17 18% 2 1 13 Hillsborough Single Family 135 28 4.8 35 10 40 29% 7 5 13
17. Market Absorption Scale (Absorption Rate in Months) 5-6 months absorption rate indicates a normal market.
18. How to Measure the Vitality of the Local Market you are Selling Out of or Buying Into… 107 current active listings 4 reported sales in last 30 days = 24.3 months absorption rate Anytown., NJ 5-6 Months Market Absorption Rate indicates a normal market.
19. Market Absorption Rate Comparable Properties 76 current active listings 18 reported ‘pending’ sales in last 30 days = 4.2 month absorption rate Plainsboro Twp., All Homes 5-6 Months Market Absorption Rate indicates a normal market.
20. Market Absorption Rate Comparable Properties 29 current active listings 5 reported ‘pending’ sales in last 30 days = 5.8 month absorption rate 5-6 Months Market Absorption Rate indicates a normal market. Plainsboro Single Families
21. Market Absorption Rate Comparable Properties 7 current active listings 5 reported ‘pending’ sales in last 30 days = 5.8 month absorption rate 5-6 Months Market Absorption Rate indicates a normal market. Plainsboro Single Families $500k +
22. Strategies for Buying: Understand the complete financial picture in buying a home. Look at a 5-year financial overview of your purchase.
24. “ What happens if I buy a house and the price goes down next year!” Answer: If you have a good downpayment, a modest, one-year drop should not be a problem when you look at the long term. (Follow the example on the next few pages.)
25. *Assumes your home loses value the first year Purchase Price $329,000 Loan Amount $317400 Down Payment $11,515 Monthly P&I $1802 Appreciation/Depreciation Home Value 1st Year -3% $319,130 2nd Year 0% $319,130 3rd Year 1% $322,321 4th Year 3% $331,990 5th Year 5% $348,590 5 Year Appreciation/Depreciation $19,500 Tax Benefit Vs Paying Rent @ $1600/mo 1st Year $5,000 $19,200 2nd Year $5,000 $19,200 3rd Year $5,000 $19,200 4th Year $5,000 $19,200 5th Year $5,000 $19,200 5 Year Total $25,000 $96,000 Total Gain $44,200 Create Equity v Pay Rent
26. + The Amortization on a Loan Yearly Schedule of Balances and Payments Year Beginning Balance Payment Principal Interest Cumulative Principal Cumulative Interest Ending Balance 2010 $315,646.96 $21,625.92 $4,374.96 $17,250.96 $6,128.00 $24,508.72 $311,272.00 2011 $311,272.00 $21,625.92 $4,621.30 $17,004.62 $10,749.30 $41,513.34 $306,650.70 2012 $306,650.70 $21,625.92 $4,881.98 $16,743.94 $15,631.28 $58,257.28 $301,768.72 2013 $301,768.72 $21,625.92 $5,157.36 $16,468.56 $20,788.64 $74,725.84 $296,611.36 2014 $296,611.36 $21,625.92 $5,448.28 $16,177.64 $26,236.92 $90,903.48 $291,163.08
27. Appreciation: $19,500 + Amortization: $20,109 + Tax Benefit of Home Ownership + Low Interest Rates: $5000
28. When you add up all the financial benefits , When you take the time to know the market you are buying into , When you buy carefully , When you have good financing and real estate advice , 2010 looks like an Excellent Time to Buy a Home!
Editor's Notes
(elicit responses)
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.
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.
Review the generic sample calculation and/or a customized calculation you prepared for your office market area. Follow the instructions below to update this slide with customized information for your office. Save the Sales Meeting Guide presentation to your C drive. Open the Sales Meeting Guide presentation from your C drive. Scroll down to the “Sample Market Absorption Rate” slide in the weekly training section of the presentation. Double-click on the slide to be able to make edits. Click in each section of the formula to edit text. Save the document to save edits.
Review the generic sample calculation and/or a customized calculation you prepared for your office market area. Follow the instructions below to update this slide with customized information for your office. Save the Sales Meeting Guide presentation to your C drive. Open the Sales Meeting Guide presentation from your C drive. Scroll down to the “Sample Market Absorption Rate” slide in the weekly training section of the presentation. Double-click on the slide to be able to make edits. Click in each section of the formula to edit text. Save the document to save edits.
Review the generic sample calculation and/or a customized calculation you prepared for your office market area. Follow the instructions below to update this slide with customized information for your office. Save the Sales Meeting Guide presentation to your C drive. Open the Sales Meeting Guide presentation from your C drive. Scroll down to the “Sample Market Absorption Rate” slide in the weekly training section of the presentation. Double-click on the slide to be able to make edits. Click in each section of the formula to edit text. Save the document to save edits.
Review the generic sample calculation and/or a customized calculation you prepared for your office market area. Follow the instructions below to update this slide with customized information for your office. Save the Sales Meeting Guide presentation to your C drive. Open the Sales Meeting Guide presentation from your C drive. Scroll down to the “Sample Market Absorption Rate” slide in the weekly training section of the presentation. Double-click on the slide to be able to make edits. Click in each section of the formula to edit text. Save the document to save edits.
Review the generic sample calculation and/or a customized calculation you prepared for your office market area. Follow the instructions below to update this slide with customized information for your office. Save the Sales Meeting Guide presentation to your C drive. Open the Sales Meeting Guide presentation from your C drive. Scroll down to the “Sample Market Absorption Rate” slide in the weekly training section of the presentation. Double-click on the slide to be able to make edits. Click in each section of the formula to edit text. Save the document to save edits.
Create your own table to approach the aspects of the marketplace that you consider most relevant and valuable to your associates. For ideas on what to cover, refer to the tables in the Planning Day Presentation on your Planning Day 2005 CD. For example, you might discuss the market conditions of different communities or price ranges each week.
Create your own table to approach the aspects of the marketplace that you consider most relevant and valuable to your associates. For ideas on what to cover, refer to the tables in the Planning Day Presentation on your Planning Day 2005 CD. For example, you might discuss the market conditions of different communities or price ranges each week.
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