Greater Princeton NJ Real Estate Market Update
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Greater Princeton NJ Real Estate Market Update

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Information and data on the summer real estate market in the greater Princeton, NJ area.

Information and data on the summer real estate market in the greater Princeton, NJ area.

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  • 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.
  • 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.
  • 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.

Greater Princeton NJ Real Estate Market Update Greater Princeton NJ Real Estate Market Update Presentation 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 Local 5. 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 Rate 100 current active listings 4 reported sales in last 30 days = 25 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. Market Absorption in Months 1 2 3 4 5 6 7 8 9 10 11 12 Normal
  • 8/9/10 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 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-Boro Single 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
  • 8/9/10 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 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 Windsor 55+ 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
  • 8/9/10 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 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
  • 8/9/10 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 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 - - - - - - -
  • 8/9/10 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 153 14 11 28 14 36 24% 16 4 14 Robbinsville Condo/ T.Houses 73 10 7.3 10 0 18 25% 9 2 8 Single Family 80 4 20 18 14 18 23% 17 2 6 Hightstown Boro: All Styles 73 1 73 12 11 15 21% 4 5 2 Pennington 17 4 4 2 (2) 2 12% 0 3 1 Hopewell Boro 18 4 5 0 (4) 3 17% 0 1 3
  • 8/9/10 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 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
  • 8/9/10 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 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 Family 139 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 Rates 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? 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.