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August Market Update Seminar
August Market Update Seminar
August Market Update Seminar
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August Market Update Seminar

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The presentation from the Weichert Princeton office August Market Seminar.

The presentation from the Weichert Princeton office August Market Seminar.

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  • Create your own table to approach the aspects of the marketplace that you consider most relevant and valuable to your Associates. For example, you might discuss the market conditions of different communities or price ranges each week.
  • 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.
  • (elicit responses)
  • 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.
  • 28
  • 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.
  • 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.
  • 28
  • 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.
  • 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.
  • New Stats Pulled Off StagedHomes.com
  • 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.
  • Transcript

    • 1. Weichert, Princeton Office August Market Update Seminar Offers analysis of the Princeton & Greater Princeton, NJ real estate markets & effective strategies to buy and sell.
    • 2. Presented by: Joshua D Wilton Broker/ Sales Rep. Weichert Realtors Princeton, NJ O 609-921-1900
    • 3. Agenda
      • The Market
      • Strategies for Buying
      • Strategies for Selling
    • 4. Agenda
      • The Market:
      • - The National Economy…
    • 5. Chrysler in Bankruptcy…GM Next…Over 1000 Chrysler Dealers to be shuttered… Source: Autodata
    • 6. Consumer Sentiment Not This Low Since Early 1980s
      • U.S. Economy: Consumer Sentiment Falls on Job Losses
      • By Shobhana Chandra and Bob Willis
      • July 10 (Bloomberg) -- Sentiment among U.S. consumers , whose spending is critical to an economic recovery, dropped in July after four months of gains as unemployment approached 10 percent.
      • The Reuters/University of Michigan preliminary index of consumer sentiment fell by more than forecast to 64.6 from 70.8 in the prior month. A separate report from the Commerce Department showed the trade deficit unexpectedly narrowed in May to the lowest level in almost a decade.
      • Unemployment is rising even as economists predict an end to the recession in coming months. Consumers in the survey said they are less likely to buy cars or appliances, suggesting that the recovery may be weaker than anticipated.
      Source: University of Michigan 1966Q1 = 100 www.bloomberg.com
    • 7. http://data.bls.gov/PDQ/servlet/SurveyOutputServlet?data_tool=latest_numbers&series_id=LASST34000003
    • 8.                                             January 1, 2009                                                Thursday, January 1, 2009  
    • 9.  
    • 10. 2009: Foreclosure Forecast Within Company-Owned Footprint Over 1800 Foreclosure in Mercer County. Less than 72 foreclosures in 08540 (3 townships). Less than 27 foreclosures in West Windsor. Majority of the 1800 are in Trenton. - foreclosurepoint.com
    • 11. Home Price Trends in Down Markets: Big Declines in Subprime Neighborhoods Yellow – Conforming Loans Only (OFHEO) Orange – All Loans including subprime and jumbo loans (Case-Shiller) Red – Subprime Loans (NAR estimate based on subprime weight)
    • 12. Where is the bottom of the market? “ The effects (of foreclosures) are continued declining prices….probably another 5-8%* to the bottom.  As for the effect of foreclosure pricing, all of these problems are causing home prices to go lower than is necessary from an affordability perspective .   That’s because everyone is now worrying about job security.  As a result, the recovery will take place at a faster pace once it gets started.” – Jeff Otteau (otteau.com- January 2009)
    • 13. What about the Real Estate Markets….?
    • 14. Pending Home Sales Record Fourth Straight Monthly Gain Washington, July 01, 2009 Pending home sales show a sustained uptrend, rising for four consecutive months with very favorable housing affordability and a first-time buyer tax credit boosting activity, according to the National Association of Realtors®. The Pending Home Sales Index , 1 a forward-looking indicator based on contracts signed in May, increased 0.1 percent to 90.7 from an upwardly revised reading of 90.6 in April, and is 6.7 percent higher than May 2008 when it was 85.0. The last time there were four consecutive monthly gains was in October 2004.
    • 15. August 21, 2009 By Lawrence Yun, Chief Economist The housing market has decisively turned for the better.  Existing home sales (single-family plus condos and coops) increased 7.2 percent from the prior month to a seasonally adjusted annual rate of 5.24 million units from an unrevised 4.89 million unit pace in June.  Compared to the same month one year ago, existing home sales were higher by 5.0 percent. The latest increase of over 7 percent is the highest monthly increase in at least 10 years.  The latest positive gain from one year ago (rather than a decline) was the first occurrence since November 2005 (nearly four years ago).
    • 16. August 21, 2009 By Lawrence Yun, Chief Economist   The year-over-year increase of 5 percent from one-year ago is the highest year-over-year rise since September of 2005.  The home sales pace of 5.24 million was the highest since August 2007. Regionally, home sales rose in three of four major regions.  From June to July seasonally adjusted sales were:   In the Northeast, existing home sales increased 13.4 percent In the Midwest, sales increased 10.9 percent   In the South, sales increased 7.1 percent   In the West, sales decreased 1.7 percent Compared to a year ago, sales are higher in all four regions.  The current housing market recovery is broad based, not isolated in few cities.  
    • 17. August 21, 2009 Strong Gain in Existing-Home Sales Maintains Uptrend Washington, August 21, 2009 For the first time in five years, existing-home sales have increased for four months in a row, according to the National Association of Realtors®. Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 7.2 percent to a seasonally adjusted annual rate 1 of 5.24 million units in July from a level of 4.89 million in June, and are 5.0 percent above the 4.99 million-unit pace in July 2008.  The last time sales rose for four consecutive months was in June 2004, and the last time sales were higher than a year earlier was November 2005.  
    • 18. “ Everything I am seeing tells me we have arrived at the bottom of the market, specifically in the popular and affordable price ranges.” J. Weichert 6/2009
    • 19. 49.8% Increase in Sales $300,000 & Under Recovery Has Begun May YTD reported internal revenue units
    • 20. Sales by Price Range
    • 21. Source: NAR Positive Indicators Across the Board….1 st time in 4 years….!
    • 22. The Otteau Report comes from an objective third-party appraisal company that provides regular market updates to developers and consumers.
    • 23. Where is the bottom of the market?
    • 24. Where is the bottom of the market?
    • 25. Less New Construction in Mercer Source: NAR, November 2008 Forecast Richardson Commercial
    • 26. The Local Inventory and Sales Patterns: Source: NAR, November 2008 Forecast
    • 27. Inventory is a combined 20% lower in the above communities than in 2007.
    • 28. Lawrence Active Inventory
    • 29. Princeton Twp. Inventory
    • 30. Princeton Boro. Active Inventory
    • 31. West Windsor Active Inventory
    • 32. Plainsboro Active Inventory
    • 33. East Windsor Active Inventory
    • 34.
      • With few exceptions (Princeton Township, Hamilton and Ewing, Inventory in Mercer County is down compared to the last several years.
      • Absorption Rates in the majority of towns are lower, suggesting an improved sales performance, specifically in the lower price ranges in each town and product line (is single family, townhouses, etc.
      • The most expensive homes in each Community will have the slowest pace of sales and continued depreciation.
      • The 55+ Active Adult market will continue to struggle.
    • 35. While continuing economic challenges lie ahead, it’s instructive to remember that the housing market tends to lead the economy in-to and out-of recession. … Building on last month’s column as to what a housing recovery will look like – more homes selling and fewer to choose from – the New Jersey market continued in the direction of stabilization last month. In May, Contract-Sales continued to rise by equaling the pace from one year ago and appear poised to exceed last year’s sales pace soon. Such a break-through above the prior year’s pace has occurred only 3 times in the past 5 years, in early 2007 and again in July 2007, as the market attempted to stabilize before being swamped by mortgage foreclosures. But different from 2007 when home sales slumped in the critical spring month of April amidst rising foreclosures and falling consumer confidence, this year’s sales pace has risen steadily in each month and now stands 86% higher than the January pace. Source- www.otteau.com
    • 36. 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
    • 37. 1. Understand the Local Market That You are Buying into…
    • 38. Market Absorption Scale (Absorption Rate in Months) 5-6 months absorption rate indicates a normal market.
    • 39. 8/18/09 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 46 4 11.5 6 2 5 11% 1 1 4 Pton -Boro Condo/ Thouses 12 0 99 1 1 2 17% 0 1 0 Pton-Boro Single Family 34 4 8.5 5 1 3 9% 1 0 4 Pton Twp: All Styles 133 20 6.7 17 (3) 30 15% 10 8 21 Pton Twp: Condo/ Thouses 20 4 5 2 (2) 5 25% 3 1 4 Pton Twp: Single Family 113 16 7.1 15 (1) 15 14% 7 7 17
    • 40. Town by Town Analysis 8/11/09 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 101 34 2.9 37 3 22 22% 7 4 43 West Windsor Condo/ T.Houses 18 8 2.2 7 (1) 5 28% 2 0 12 West Windsor 55+ 7 0 99 - - - - - - - West Windsor Single Family 76 26 29 30 4 17 22% 5 4 31 Lawrence: All Styles 190 35 5.4 50 15 42 22% 13 14 31 Lawrence: Condo/ THouses 91 15 6.0 25 10 19 21% 3 5 14 Lawrence: 55+ 26 0 99 - - - - - - - Lawrence: Single Family 83 20 4.1 25 25 23 27 10 9 27
    • 41. Town by Town Analysis 8/18/09 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 Ewing: All Styles 237 30 7.9 44 14 46 19% 19 8 27 Ewing : Condo/ T.Houses 44 3 14.6 10 7 10 23% 6 4 7 Ewing 55+: 1 0 99 - - - - - - - Ewing: Single Family 172 27 6.3 34 7 36 21 12 4 20 East Windsor: All Styles 188 28 6.7 45 12 37 19 18 8 25 East Windsor: Condo/ THouses 99 12 8.2 25 13 19 19 10 5 11 East Windsor: 55+ 19 0 99 - - - - - - - East Windsor: Single Family 70 16 4.3 15 25 18 25 8 3 14
    • 42. Town by Town Analysis 8/18/09 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 Hopewell Twp. All Styles 174 19 9 25 6 35 20% 12 6 22 Hopewell Twp. Condo/ T.Houses 26 6 4 6 0 9 35% 3 1 5 Hopewell Twp.: 55+ 6 0 99 - - - - - - - Hopewell Twp: Single Family 142 13 11 19 6 26 18% 9 5 17 Hamilton: All Styles 561 96 6 121 25 118 21% 36 19 91 Hamilton: Condo/ THouses 95 22 4 27 5 27 28% 7 5 21 Hamilton: Single Family 425 71 6 94 23 91 21% 29 14 70 Hamilton: 55+ 41 3 14 - - - - - - -
    • 43. Town by Town Analysis 8/18/09 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 Robbinsville All Styles 108 17 6 27 10 19 18% 8 8 22 Robbinsville Condo/ T.Houses 51 11 5 20 9 10 20% 4 3 13 Robbinsville 55+ 0 0 0 0 0 0 0 0 0 0 Single Family 57 6 9.5 7 1 9 16% 4 5 9 Hightstown Boro: All Styles 59 2 29.5 13 11 17 29% 4 3 7 Pennington 25 3 8 3 0 8 32% 3 2 6 Hopewell Boro: All Styles 9 3 3 0 (3) 2 22% 0 0 3
    • 44. Market Activity: Town by Town Analysis 8/18/09 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 PlainsboroAll Styles 70 16 4.3 17 1 14 2% 9 0 22 Plainsboro Condo/ THouses 41 10 4.1 11 1 9 21% 5 0 7 Plainsboro 55+ 11 0 99 3 3 1 9% 2 0 0 Plainsboro Single Family 18 6 3 3 (3) 4 22% 2 0 15 Cranbury: All Styles 31 1 31 9 8 3 9% 1 0 0 Cranbury: 55+ 3 0 99 1 1 2 66% 0 0 0 Cranbury: Single Family 28 1 28 8 7 1 3% 1 0 0
    • 45. Town by Town Analysis 8/18/09 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 South Brunswick All Styles 208 24 8 43 19 35 16% 27 6 4 South Brunswick Condo/ T.Houses 70 9 7 21 12 19 14 6 3 1 South Brunswick 55+ 31 6 5 2 (4) 4 12 4 0 0 South Brunswick Single Family 109 9 12 20 11 21 19 17 3 0 Monroe: All Styles 487 39 12 92 53 105 21% 41 7 9 Monroe: 55+ 312 29 10 53 24 68 21% 22 6 1 Monroe: Single Family 175 10 21 39 29 37 21% 19 1 0
    • 46. 8/18/09 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 Montgom. 140 43 3.3 33 (10) 38 28% 6 9 39 Hillsboro 262 31 8.5 56 25 46 18% 18 8 46 Rocky Hill 4 0 99 2 2 1 25% 0 1 0 Franklin 406 65 6.2 90 25 79 20% 22 17 57
    • 47. Market Absorption Scale (Absorption Rate in Months) 5-6 months absorption rate indicates a normal market.
    • 48. Absorption Rate by Price Range 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 .
    • 49. Sample Market Absorption Rate 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.
    • 50. Princeton Borough Absorption Rate By Price Towns Active Listings Pending in Last 30 Days Absorption Rate in Months 0-$500 9 0 99 $500-999k 14 2 7 $1 million - $2 million 15 0 99 $2- $5 million 7 0 99
    • 51. Princeton Township Absorption Rate By Price Towns Active Listings Pending in Last 30 Days Absorption Rate in Months 0-$500 6 3 2 $500-999k 49 4 12.2 $1 million - $2 million 43 3 14.3 $2- $4 million 26 1 26 $4 + 2 0 99
    • 52. West Windsor Absorption Rate By Price Towns Active Listings Pending in Last 30 Days Absorption Rate in Months 0-$500 46 12 3.83 $500-750k 36 11 3.27 $750-999 20 3 6.6 $999 + 6 0 99
    • 53. Lawrence Absorption Rate By Price Towns Active Listings Pending in Last 30 Days Absorption Rate in Months 0-$400 134 16 8.3 $400-650 44 7 6.2 $650-999 11 1 11 $999 + 8 0 99
    • 54. Ewing Absorption Rate By Price Towns Active Listings Pending in Last 30 Days Absorption Rate in Months 0-$150 30 3 10 $150-250 126 12 10.5 $250-450 80 4 20 450+ 9 0 99
    • 55. Hopewell Absorption Rate By Price Towns Active Listings Pending in Last 30 Days Absorption Rate in Months 0-$400 63 4 15.7 $400-$650 46 1 46 $650-999 39 1 39 $999+ 33 0 99
    • 56. Lawrence Single Family Absorption Rate
    • 57. Princeton Twp. Single Family Absorption Rate
    • 58. Princeton Boro. Single Family Absorption Rate
    • 59. West Windsor Condo/Townhouses Absorption Rate
    • 60. West Windsor Single Family Absorption Rate
    • 61. East Windsor Condo/Townhouse Absorption Rate
    • 62. East Windsor Single Family Absorption Rate
    • 63. Understand the Market That You are Buying into… I want to live in West Windsor…
    • 64. Town by Town Analysis 8/11/09 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 101 34 2.9 37 3 22 22% 7 4 43 West Windsor Condo/ T.Houses 18 8 2.2 7 (1) 5 28% 2 0 12 West Windsor 55+ 7 0 99 - - - - - - - West Windsor Single Family 76 26 29 30 4 17 22% 5 4 31 Lawrence: All Styles 190 35 5.4 50 15 42 22% 13 14 31 Lawrence: Condo/ THouses 91 15 6.0 25 10 19 21% 3 5 14 Lawrence: 55+ 26 0 99 - - - - - - - Lawrence: Single Family 83 20 4.1 25 25 23 27 10 9 27
    • 65. Market Absorption Rate West Windsor Twp. 18 current active listings 7 reported ‘pending’ sales in last 30 days = 2.5 month absorption rate Townhouses All Prices Market Absorption Rate is the number of months it will take to sell the current inventory of homes if nothing new comes on the market and the rate of sales stays the same 5-6 Months Absorption Rate indicates a Normal Market
    • 66. Market Absorption Scale (Absorption Rate in Months) 5-6 months absorption rate indicates a normal market.
    • 67. Market Absorption Rate West Windsor Twp. 16 current active listings 3 reported ‘pending’ sales in last 30 days = 5.5 month absorption rate Townhouses $0-500 Market Absorption Rate is the number of months it will take to sell the current inventory of homes if nothing new comes on the market and the rate of sales stays the same 5-6 Months Absorption Rate indicates a Normal Market
    • 68. Market Absorption Rate West Windsor Twp. current active listings 0 reported ‘pending’ sales in last 30 days = 4.25 month absorption rate Townhouses $500k+ Market Absorption Rate is the number of months it will take to sell the current inventory of homes if nothing new comes on the market and the rate of sales stays the same 5-6 Months Absorption Rate indicates a Normal Market
    • 69. Market Absorption Rate West Windsor Twp. 2 current active listings 0 reported ‘pending’ sales in last 30 days = 99 month absorption rate Townhouses $500 + Market Absorption Rate is the number of months it will take to sell the current inventory of homes if nothing new comes on the market and the rate of sales stays the same 5-6 Months Absorption Rate indicates a Normal Market
    • 70. 2. ‘I am going to time the Market and buy at the peak inventory level and when no one else buys…’ Source: MLS
    • 71. Source: MLS Weekly Guests Thru the Weichert Princeton Open Houses, 2007
    • 72. Source: MLS Inventory Levels, Princeton, New Jersey, 2007
    • 73. 3. ‘I am going to wait until the price comes down further and then make an offer…’ Source: MLS
    • 74. Source: trend mls Relationship of Price Reductions to ‘Pending Sales’
    • 75. Town by Town Analysis 8/18/09 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 South Brunswick All Styles 208 24 8 43 19 35 16% 27 6 4 South Brunswick Condo/ T.Houses 70 9 7 21 12 19 14 6 3 1 South Brunswick 55+ 31 6 5 2 (4) 4 12 4 0 0 South Brunswick Single Family 109 9 12 20 11 21 19 17 3 0 Monroe: All Styles 487 39 12 92 53 105 21% 41 7 9 Monroe: 55+ 312 29 10 53 24 68 21% 22 6 1 Monroe: Single Family 175 10 21 39 29 37 21% 19 1 0
    • 76. Source: trend mls Relationship of Price Reductions to ‘Pending Sales’
    • 77. Source: trend mls Relationship of Price Reductions to ‘Pending Sales’
    • 78. Source: trend mls Relationship of Price Reductions to ‘Pending Sales’
    • 79. Seeing the Opportunity.
    • 80. Seeing the Opportunity.
      • Q. If this were 2005, where would you place the Price and Rate dots?
      Prices Rates High Mid-Range Low A. In 2005, the V would look somewhat like this one, where prices were on the high end of the scale and rates were in the lower range.
    • 81. Seizing the Opportunity.
      • In recent history, there has never been an opportunity like this, with low prices and low rates. In real estate, this circular area at the bottom of the V is called the “Buying Zone” – it’s an unbelievable time to buy.
      Prices Rates High Mid-Range Low
    • 82. Jeff Smith, Gold Services Manager/ Loan Officer Financial Benefits and Process of Home-Ownership.
    • 83. ‘ I don’t want to buy a house and then watch it drop in value!’
    • 84.   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
    • 85. + The Amortization Schedule on a Loan = Total 5 Year Gain: $59,922 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
    • 86. Incentive From the Government First-time homebuyers can receive a tax credit up to $8000!
    • 87. Tax Credit Overview Distribute NAR Tax Credit Overview handout Amount Ten percent of the cost of home, not to exceed $8,000 Property Any single family residence that will be used as a principal residence Refundable Reduces income tax liability for the year of purchase Income Limit Adjusted gross income of $75,000 single or $150,000 joint tax returns First-Time Must not have owned a principal residence in 3 years prior to purchase
    • 88. Tax Credit FAQs
      • Can individuals with incomes higher than the income limits still benefit from the tax credit?
      • How does a tax credit work?
      • How do I apply for the credit?
      • Is there a way to get the credit before I file my tax return?
      • How does the repayment work?
      Distribute NAR Frequently Asked Question handout
    • 89. How much house can I really afford?
    • 90.
      • The first step is to meet with me!
      Establish Your Buying Power
    • 91. Factors to consider when buying and selling… Source: MLS Inventory(supply and demand) Interest Rates
    • 92. Interest Rates Remain Low Source: Freddie Mac
    • 93. Joshua D. Wilton, Manager Strategies for Selling
    • 94. The Impact of Pricing on the Salability of Your Home..…
    • 95. ‘ Great speech but does it really work?
    • 96. We know the best way to evaluate pricing
      • Does this really work?
    • 97. We know the best way to evaluate pricing
      • Does this really work?
    • 98. 2 . The Effect of Staging on the Value of a Your Home .
    • 99. The process of preparing homes for sale regardless of Price, Location, or Condition To achieve the maximum sales price in the minimum marketing time. The GOAL is to appeal to the broadest range of BUYERS .
    • 100. Non-Staged The Way You Live In Your Home…
    • 101. … And The Way We Market And Sell A House Are Two Different Things. Staged
    • 102. “ The Investment in Home Staging is Always Less than Your First Price Reduction!”
    • 103. Non-Staged Buyers Only Know What They See …
    • 104. … Not The Way It Is Going To Be. Staged
    • 105. Based on a StagedHomes.com survey of over 400 homes across Canada & the Continental US prepared for sale by an Accredited Staging Professional (ASP™) from June 2007 through November 2007.
    • 106. Why Promote Home Staging ? The average increase in sales price of an ASP Staged vs. non-Staged home is 6.9% . That is an additional $31,050 on a $450,000 sale.
    • 107. The average marketing time of an ASP Staged vs. non-Staged home is 80% less . Why Promote Home Staging ?
    • 108. 3. The Effect of ‘ Pre-Inspection’ on the Sale of Your Home.
    • 109. What is ‘ Pre-Inspection?’
    • 110. Home Inspection WHAT DOES PRE-INSPECTION INCLUDE? The standard home inspector's report will review the condition of the home's heating system, central air conditioning system (temperature permitting), interior plumbing and electrical systems; the roof, attic, and visible insulation; walls, ceilings, floors, windows and doors; the foundation, basement, and visible structure.  
    • 111. PRE-LISTING Home Inspection DOESN’T THE BUYER DO THE HOME INSPECTION?
    • 112. All Negotiations, including real estate, are all about negotiation and control. Who is in control? Right Price Right Staging All Repairs are done in advance. Offer a Home Warranty to the buyer..
    • 113. PRE-LISTING Home Inspection Data on where most sales fall apart: attorney review, home inspection. Fall Thru Percentage 2007: 26% Fall Thru Percentage 2008: 10.2% .
    • 114. Home Improvements I am moving out of the house, I do not want spend too much money to move. Or I just spent $$ on a new kitchen, I want $$$$$$ back on that investment when I move.
    • 115.  
    • 116.  
    • 117. Reality of today’s market is that you will see the return on your investment not in an inflated sales price but in retaining the highest percentage of your list price and staying on the market the fewest # of days. Please consult with your Realtor & staging professional as to which improvements you should finish to make your home the most salable.
    • 118. Weichert Family of Companies What will a real estate company do for me?
    • 119. Making Your Purchase as Smooth as Possible Buying a home involves the careful coordination of many people. Choosing a real estate team you can count on will make the process smoother and easier.
    • 120.
      • Time is money.
      The Weichert Difference
      • Stress kills.
      • Time is life.
    • 121.
      • Educate You.
      • Negotiate on your behalf.
      • Offer advice on due diligence.
      • Manage all aspects of the transaction process.
      What Will a Weichert Agent Do for Me?
    • 122. We’re Here to Help
      • The Entire Process is reviewed by Legal Council.
    • 123. Weichert Princeton on Facebook
    • 124. Search ‘Weichert Realtors Princeton ’
    • 125. Click ‘Become a Fan’
    • 126. Download seminar & read other market data
    • 127. Resource and website list:
      • Realtor.org
      • http://www.facebook.com/pages/
      • NAR-Research/73888294183#
      • Remodeling.com
    • 128. Resource and Website List
      • http://www.realtor.org/research/research/housinginx Remodeling.com
      • www.Otteau.com
      • www.Pre-listing-inspection.com
    • 129. Resource and Website List:
      • www.Housemaster.com
      • www.Stagingshoppingcenter.com
    • 130. Resource and website list:
      • www.Stagedhomes.com
      • www.realestatestagingassociation.com
      • www.foreclosurepoint.com
      • www.realtytrac.com
    • 131. Good Luck with your Move!

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