SlideShare a Scribd company logo
1 of 141
Weichert, Princeton Office February Market Update Seminar Offers analysis of the Princeton & Greater Princeton, NJ real estate markets & effective strategies to buy and sell.
Presented by: Joshua D Wilton Broker/ Sales Rep.  Weichert Realtors Princeton, NJ O 609-921-1900 www.weichert-princeton.com www.facebook.com/weichertprinceton
The presentation will be posted on the following site immediately after today’s session to the following site.  Will be available for downloads thru Monday. www.weichert-princeton.com www.facebook.com/weichertprinceton
Agenda ,[object Object],[object Object],[object Object],[object Object]
Agenda ,[object Object]
WSJ estimates over $8.4 trillion lost in the stock market crash. Source: wsj
From the end of 2006 through March 31, it says, the total market value of U.S. household real estate fell from  $21.9 trillion to $17.9 trillion.  That's about 18%. (The lost wealth works out at just over $13,000 for every person in the country.) Source: wsj
The consequences nationally… http://data.bls.gov/PDQ/servlet/SurveyOutputServlet?data_tool=latest_numbers&series_id=LASST34000003
The consequences for NJ… http://data.bls.gov/PDQ/servlet/SurveyOutputServlet?data_tool=latest_numbers&series_id=LASST34000003
Source: www.otteau.com
What about the Real Estate Markets….?
A real estate market correction was taking shape the summer of 2001… Inventory was growing… Rates were edging up… Contracts were slowing…
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. Variance % 2009 from 2008 NY (Ashby)   -9.26% CT (Doepper)   +1.44% Passaic/Hudson/Bergen NJ (Bixon)   +.32% Western Central NJ/Lehigh Valley PA (McDonald)  +.32% Northern and Central NJ (Prevete)  +.28% Eastern Central/Shore Points NJ (Waters)   +.08% Southern NJ (Williams)   -.03%
123 Any street, Princeton, NJ  ,[object Object],[object Object],[object Object],[object Object]
123 Any street, Princeton, NJ  ,[object Object],[object Object],[object Object],[object Object]
Forecast for 2010  (mid-Atlantic region) Source: NAR, November 2008 Forecast
2010: NAR Forecast ,[object Object]
2010: More Balanced Market Absorption Rates Jan 2009 vs January 2010 Region 2009 2010 Var % Chappell 3.7 1.6 -56.8% Green 3.4 3.5 2.9% Minsky 11.1 8.1 -27.0% McDonald 21.6 8.9 -58.8% Williams 18.5 9.1 -50.8% Waters 22.5 11.7 -48.0% Prevete 23.5 12.5 -46.8% Bixon  18.8 14.0 -25.5% Doepper 31.2 19.6 -37.2% Ashby 33.5 21.3 -36.4% Total 18.78 11.03 -41.3%
2010: A More Balanced Market ,[object Object],[object Object],[object Object]
2010: A More Balanced Market ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
2010: A More Balanced Market ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
2010: A More Balanced Market ,[object Object],Region Jan-09 Jan-10 %Var Waters 6620 3541 -46.5% McDonald 17121 10157 -40.7% Green 23570 14706 -37.6% Minsky 15224 10189 -33.1% Ashby/Doepper 14736 11975 -18.7% Chappell 16522 14082 -14.8% Bixon 12605 11484 -8.9% Williams 6225 6287 1.0% Prevete 8150 9871 21.1% Total 120,773 92,292 -23.6%
Title Theory vs. Lien Theory Generally, foreclosure in Title States occurs through a non-judicial proceeding, while Lien States are conducted via judicial methods; however it varies with each state.  This can greatly effect the timing of the foreclosure process. Information obtained from www.realtytrac.com
2010: A More Balanced Market ,[object Object],[object Object],[object Object]
A long term outlook in NJ & Mercer County Source: NAR, November 2008 Forecast
NJ Housing Permits Source: Census RESIDENTIAL BUILDING PERMITS AUTHORIZED 2000-2008 COUNTY 2000  2001  2002  2003  2004  2005  2006  2007 2008 Total  Atlantic County 1,625 1,685 2,020 2,285 2,075 2,002 1,893 1,136 794 15,515 Bergen County 2,847 1,784 1,771 1,289 2,142 2,972 2,164 2,957 1,311 19,237 Burlington County 2,775 2,184 2,359 1,805 1,516 1,475 2,784 1,037 976 16,911 Camden County 796 757 1,160 1,934 1,413 1,706 1,183 1,191 895 11,035 Cape May County 1,242 1,403 1,422 1,693 2,149 2,433 1,580 1,081 485 13,488 Cumberland County 255 256 310 374 566 630 737 683 336 4,147 Essex County 1,491 1,548 1,588 2,235 2,343 3,128 3,284 1,854 1,314 18,785 Gloucester County 1,337 1,635 1,802 1,859 2,050 2,075 1,141 920 788 13,607 Hudson County 1,338 1,116 1,534 2,116 3,808 4,498 4,275 3,081 3,229 24,995 Hunterdon County 616 685 602 814 648 506 350 316 206 4,743 Mercer County 1,283 1,355 1,428 1,188 1,641 1,296 847 700 625 10,363 Middlesex County 2,460 1,884 1,999 2,306 2,622 3,206 2,567 1,597 1,020 19,661 Monmouth County 2,912 2,194 2,372 2,756 2,628 2,584 2,820 2,060 1,526 21,852 Morris County 2,684 1,577 1,914 1,555 1,427 2,503 1,670 1,052 795 15,177 Ocean County 5,633 3,830 3,534 4,009 3,818 2,904 2,114 2,160 1,527 29,529 Passaic County 457 631 689 829 763 647 850 760 432 6,058 Salem County 161 180 170 307 334 297 298 148 198 2,093 Somerset County 2,282 1,439 1,530 1,260 1,362 1,220 1,058 926 791 11,868 Sussex County 719 808 679 587 612 668 603 360 302 5,338 Union County 776 551 681 1,198 1,399 1,278 1,593 1,123 673 9,272 Warren County 896 765 877 585 620 560 512 258 146 5,219 New Jersey 34,585 28,267 30,441 32,984 35,936 38,588 34,323 25,400 18,369 278,893
NJ Housing Permits Source: Census In thousand units
Long Term Supply … Source: NAR, November 2008 Forecast Richardson Commercial
Long Term Demand in Mercer County … Source: NAR, November 2008 Forecast Source: https://edis.commerce.state.nc.us/docs/countyProfile/NJ/34021.pdf (Mercer County) Population & Growth Population Annual Growth Rate 2013 Total Population 383,677 0.6% 2008 Total Population 371,963 0.7% 2000 Total Population 350,761
Long Term Demand in Mercer County … Source: NAR, November 2008 Forecast Source: https://edis.commerce.state.nc.us/docs/countyProfile/NJ/34021.pdf Estimated Pop. by Age  Pop by Age,  % Est. 2013 Median Age 39 2008 Median Age 38 2000 Median Age 36 2008 Total Pop 0-19  98,816  26.6% 2008 Total Pop 20-29  49,307  13.3% 2008 Total Pop 30-39  49,497  13.3% 2008 Total Pop 40-49  58,288  15.7% 2008 Total Pop 50-59  51,605  13.9% 2008 Total Pop 60+  64,450  17.3%
Fast Forward to today… Have we hit the bottom of the market yet…?!?!?!? Source: NAR, November 2008 Forecast
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)
‘ Real Estate is a Bottom up market…’ “ 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
And… Otteau.com
Statistically speaking, there are grounds for modest optimism that prices will trend upward in the near future, said the market analyst Jeffrey Otteau, whose  Otteau Valuation Group   continuously tracks sales data in 21 counties for real estate companies. Mr. Otteau cited one recent report indicating that  New Jersey  was one of a half dozen “breakout” states in which prices had already begun to creep up in the second half of 2009. That report came from the Federal Housing Finance Agency, which indexes purchase prices of homes with mortgages guaranteed by Freddie Mac and Fannie Mae. Looking at data from the entire period of the slide — the start of 2006 through the third quarter of 2009 — Mr. Otteau concluded that the state’s residential market “didn’t get hammered all that bad” compared with the nation at large, and was likely to recover faster. Optimism About the New Year… -nytimes.com
Local Inventory Trends. Economics 101: As supply goes up, prices go ___. Source: NAR, November 2008 Forecast
Listings from TREND MLS in Mercer County
Princeton Boro Inventory Trends: 3 Year Snapshot
Princeton Twp Inventory Trends: 3 Year Snapshot
Lawrence Inventory Trends: 4 year View
Hopewell Inventory Trends: 4 year View
Ewing Inventory Trends: 4 year View
West Windsor Inventory Trends: 4 Year View
Plainsboro Inventory Trends: 4 year View
Closed Homes Snapshot: 2007 2008 2009 Princeton Boro 87 72 61 Princeton Twp. 211 163 157 West Windsor 371 299 303 Lawrence 383 285 305 Hopewell 226 191 153 Plainsboro 273 214 231
Town 2007 Inven Count 2007  Pending Sales (prev 30 days) 2007  Absorb Rate 2008 Inven. Count 2008 Pending Sales (prev. 30 days) 2008 Absorp. Rate 2009 Inven. Count 2009 Pending  Sales (prev. 30 days) 2009 Absorp. Rate (months) 2010 Inven. Count 2010  Pending Sales (prev. 30 days) 2010 Absorp. Rate (months) Pton. Boro 38 4 9.5 51 0 99 41 0 9 25 7 3.5 Pton. Twp. 105 2 52.5 108 9 11 100 3 33 80 8 10 W. Windsor 137 25 5.4 119 12 7.9 113 15 7.5 96 8 12 Lawrence 172 26 6.6 183 14 13.07 155 13 11.9 201 17 11.8 East Windsor 179 19 9.4 177 21 8.4 176 10 17.6 162 12 13.5 Ewing 189 19 18.6 235 17 13.8 192 10 19.2 227 9 25.5 Hopewell Twp. 163 12 13.5 139 8 17.3 115 12 9.5 127 9 14 Cranbury 13 2 11.5 31 2 15.5 25 1 25 18 1 18 Plainsb. 125 11 11.3 100 14 6.92 70 8 8.75 56 10 5.6 S. Bruns. 197 27 7.3 172 17 10.7 205 10 21 151 18 9 Montgom 132 16 8.2 116 14 8.2 100 9 11.1 104 20 5.2 Hamilton 445 58 13.5 532 46 11.5 524 77 6.6 499 58 9 Cum. 1895 221 8.57 1963 174 11.2 1816 168 10.8 1746 177 9.8
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
1. Understand the Local Market That You are Buying into…
Market Absorption Scale (Absorption Rate in Months) 5-6 months absorption rate indicates a normal market.
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 .
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.
Town 2007 Inven Count 2007  Pending Sales (prev 30 days) 2007  Absorb Rate 2008 Inven. Count 2008 Pending Sales (prev. 30 days) 2008 Absorp. Rate 2009 Inven. Count 2009 Pending  Sales (prev. 30 days) 2009 Absorp. Rate (months) 2010 Inven. Count 2010  Pending Sales (prev. 30 days) 2010 Absorp. Rate (months) Pton. Boro 38 4 9.5 51 0 99 41 0 9 25 7 3.5 Pton. Twp. 105 2 52.5 108 9 11 100 3 33 80 8 10 W. Windsor 137 25 5.4 119 12 7.9 113 15 7.5 96 8 12 Lawrence 172 26 6.6 183 14 13.07 155 13 11.9 201 17 11.8 East Windsor 179 19 9.4 177 21 8.4 176 10 17.6 162 12 13.5 Ewing 189 19 18.6 235 17 13.8 192 10 19.2 227 9 25.5 Hopewell Twp. 163 12 13.5 139 8 17.3 115 12 9.5 127 9 14 Cranbury 13 2 11.5 31 2 15.5 25 1 25 18 1 18 Plainsb. 125 11 11.3 100 14 6.92 70 8 8.75 56 10 5.6 S. Bruns. 197 27 7.3 172 17 10.7 205 10 21 151 18 9 Montgom 132 16 8.2 116 14 8.2 100 9 11.1 104 20 5.2 Hamilton 445 58 13.5 532 46 11.5 524 77 6.6 499 58 9 Cum. 1895 221 8.57 1963 174 11.2 1816 168 10.8 1746 177 9.8
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 25 7 3.5 5 (2) 3 12% 1 0 2 Pton -Boro Condo/ Thouses 9 1 9 1 0 1 11% 0 0 1 Pton-Boro Single Family 16 6 2.6 4 (2) 2 13% 1 0 1 Pton Twp: All Styles 80 8 10 18 10 17 22% 2 4 4 Pton Twp: Condo/ Thouses 12 5 2.4 7 2 3 25% 0 2 2 Pton Twp: Single Family 68 3 22.6 11 8 14 21% 2 2 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 West Windsor:  All Styles 98 8 12 32 24 13 14% 1 9 11 West Windsor Condo/ T.Houses 19 2 9.5 5 3 3 16% 1 2 3 West Windsor 55+ 14 0 99 1 1 0 0 0 0 0 West Windsor  Single Family 63 6 10.5 26 20 10 15% 0 7 8 Lawrence: All Styles 210 17 11.8 43 26 27 13% 10 6 7 Lawrence: Condo/ THouses 61 6 10.1 10 4 15 24% 4 0 2 Lawrence:  55+ 26 0 99 6 6 0 0 3 2 1 Lawrence:  Single Family 114 11 10.3 27 16 12 11% 3 4 4
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 227 9 25.2 58 49 39 17% 10 4 16 Ewing : Condo/ T.Houses 41 2 20.5 14 121 3 8% 3 1 4 Ewing 55+: 4 0 99 0 0 0 0 0 0 0 Ewing: Single Family 182 7 26 44 37 36 20% 7 3 12 East Windsor: All Styles 162 12 13.5 42 30 24 15% 7 0 10 East Windsor: Condo/ THouses 84 11 7.6 16 5 11 13% 5 0 6 East Windsor: 55+ 21 0 99 11 11 0 0 1 0 1 East Windsor: Single Family 57 1 57 15 14 13 23% 1 0 3
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 127 9 14 28 19 23 18% 9 7 11 Hopewell Twp. Condo/ T.Houses 7 1 7 1 0 1 14% 1 0 2 Hopewell Twp.: 55+ 3 0 99 - - - - - - - Hopewell Twp Single Family 117 8 15 27 19 22 19% 8 7 9 Hamilton: All Styles 499 58 9 139 81 87 17% 30 30 38 Hamilton: Condo/ THouses 98 14 7 34 20 16 16% 9 3 0 Hamilton: Single Family 368 38 10 105 67 71 19% 21 27 38 Hamilton: 55+ 33 6 5.5 - - - - - - -
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 89 18 5 29 11 17 19% 5 5 3 Robbinsville Condo/ T.Houses 48 12 4 21 9 10 21% 3 3 3 Robbinsville 55+ - - - - - - - - - - Single  Family 41 6 7 8 2 7 17% 2 2 0 Hightstown Boro: All Styles 56 4 14 14 10 6 11% 2 0 4 Pennington 21 2 10.5 6 4 3 14% 1 1 1 Hopewell Boro: All Styles 16 0 99 3 3 2 13% 2 0 1
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 56 10 5.6 20 10 9 16% 5 0 1 Plainsboro Condo/ THouses 31 4 7.7 12 8 3 9% 3 0 0 Plainsboro 55+ 8 0 99 1 1 4 50% 1 0 0 Plainsboro Single Family 17 6 2.8 7 1 2 11% 1 0 1 Cranbury: All Styles 18 1 18 3 2 1 5% 4 0 0 Cranbury: 55+ 1 0 99 0 0 0 0 0 0 0 Cranbury: Single Family 17 1 17 3 2 1 5% 4 0 0
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 151 18 9 52 34 12 8% 12 4 20 South Brunswick Condo/ T.Houses 28 6 5 17 11 1 6% 1 0 8 South Brunswick 55+ 33 1 33 11 10 1 30% 2 2 1 South Brunswick Single Family 90 7 13 24 17 10 11% 9 2 11 Monroe: All Styles 388 24 16 100 76 45 12% 38 4 27 Monroe: 55+ 237 21 13 52 31 31 13% 24 2 18 Monroe: Single Family 151 3 50 48 45 14 9% 14 2 9
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. 104 20 5.2 44 24 20 20% 5 4 6 Hillsboro 178 32 5.5 52 20 32 18% 15 12 15 Rocky Hill 4 0 99 2 2 - - - - - Franklin 384 45 8.5 134 89 63 16% 37 13 25
Open House Guest Comparison
Months Supply of Lower Priced Single Family Homes Falling (national) Source: NAR  (Unpublished data) Price Category August 2008 August 2009 $99,999 or less 6.8 4.3 $100,000 to 249,999 7.8 4.9 $250,000 to $499,999 10.2 6.4 $500,000 to $749,999 14.0 10.0 $750,000 to $999,999 16.5 10.5 $1,000,000 to $1,999,999 19.8 15.2 $2,000,000 or greater 32.0 31.7 All Single-family 10.0 8.2
Source: otteau.com, 4 th  quarter 2009
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.   Note: This Market Scale is valid only for absorption rates between 1 and 12 months.  Market Absorption in Months 1 2 3 4 5 6 7 8 9 10 11 12 Normal
Princeton Boro Absorption Rate By Price Towns Active Listings Pending in Last 30 Days Absorption Rate in Months 0-$500 8 2 4 $500-750k 6 0 99 $750-999 1 2 (.5) $999 + 11 1 11
West Windsor Absorption Rate By Price Towns Active Listings Pending in Last 30 Days Absorption Rate in Months 0-$350 27 3 9 $350-750 31 5 6.2 $750-999 13 2 6.5 $999 + 6 0 99
Hopewell Absorption Rate By Price Towns Active Listings Pending in Last 30 Days Absorption Rate in Months 0-$350 58 6 9.6 $350-750 25 1 25 $750-999 21 0 99 $999 + 33 0 99
Ewing Absorption Rate By Price Towns Active Listings Pending in Last 30 Days Absorption Rate in Months $0-100 12 0 99 $100-200 80 4 20 $200-350 122 10 12.2 350-450 12 2 6 450+ 1 0 99
Understand the Market That You are Buying/ Selling in… I want to live/ sell in Princeton…..
Market Absorption Scale (Absorption Rate in Months) 5-6 months absorption rate indicates a normal market.
Princeton Twp. 84 current active listings  6 reported sales in last 30 days = 14 months  absorption rate 5-6 Months Market Absorption Rate indicates a normal market. All Prices: All Styles
Princeton Twp. 14 current active listings  2  reported sales in last 30 days = 7 months  absorption rate 5-6 Months Market Absorption Rate indicates a normal market. 0-$600, All Styles
Princeton Twp. 6 current active listings  3 reported sales in last 30 days = 3 months  absorption rate 5-6 Months Market Absorption Rate indicates a normal market. 0-$600k Townhouses
Princeton Twp. 44 current active listings  0 reported sales in last 30 days = 99 months  absorption rate 5-6 Months Market Absorption Rate indicates a normal market. 999+ Single Family
2. ‘I am going to time the Market and buy/ sell at the time when inventory & buyer count is in my favor…’ Source: MLS
Weekly Guests Thru the Weichert Princeton Open Houses, 2009
Source: MLS Inventory Levels, Princeton Twp. New Jersey, 2009
3. ‘I am going to wait until the price comes down further  and then  make an offer/ if I lower my price I will get lower bids… Source: MLS
Source: trend mls Relationship of Price Reductions to ‘Pending Sales’
Town by Town Analysis 9/21/09 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 21 9 54 3 22 11% 21 18 36 South Brunswick Condo/ T.Houses 61 10 6 27 17 8 13% 6 8 16 South Brunswick 55+ 30 1 30 2 1 3 1% 2 3 3 South Brunswick Single Family 105 11 9.5 25 14 11 10% 13 7 21
Source: trend mls Relationship of Price Reductions to ‘Pending Sales’
Source: trend mls Relationship of Price Reductions to ‘Pending Sales’
Source: trend mls Relationship of Price Reductions to ‘Pending Sales’
Seeing the Opportunity.
Seeing the Opportunity. ,[object Object],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.
Seizing the Opportunity. ,[object Object],Prices Rates High Mid-Range Low
Kevin Reilly,  Vice President Weichert Financial Services Financial Benefits and Process of Home-Ownership.
‘ I don’t want to buy a house and then watch it drop in value!’
  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
  Purchase Price $329,000 Loan Amount $317400 Down Payment $11,515 Monthly P&I $1802  Appreciation/Depreciation Home Value 1st Year 5 $319,130 2nd Year 3% $319,130 3rd Year 2% $322,321 4th Year 2% $331,990 5th Year 2% $348,590 5 Year Appreciation/Depreciation $48,590 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  $73,529 Create Equity v  Pay Rent
+ The Amortization Schedule 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
Appreciation (conservitive): $19,500 + Amortization: $20,109 +  Tax Benefit of Home Ownership $25,000 + Tax Credit: $8000 +  Low Interest Rates: $5000 ___________________ total 5 year gain = $77,609
A Great Time to Buy a Home ,[object Object],[object Object],[object Object]
Tax Credit Overview ,[object Object],[object Object],[object Object],[object Object]
The  NEW  First-Time Buyer Tax Credit Amount 10 percent of the cost of the home, not to exceed $8,000 Property Any home that will be used as a principal residence  including single-family homes, condos, townhomes and co-ops; not to exceed $800,000 Refundable Reduces income tax liability for the year of purchase Income Limit Adjusted gross income of $125,000 for single or $225,000 for joint tax returns  INCREASED (Effective Nov. 7, 2009) ! First-Time Must not have owned a principal residence in three years prior to purchase Limitation If home is sold within three years of purchase, entire amount of credit is recaptured Effective Date Purchases with closing/settlement between Nov. 7, 2009, and June 30, 2010  EXTENDED ! Deadline Written binding contract on or before April 30, 2010, with closing/settlement by June 30, 2010  EXTENDED !
The  NEW  Current Homeowner Tax Credit Amount Up to $6,500  Eligibility Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years Purchased Home Any home that will be used as a principal residence  including single-family homes, condos, townhomes and co-ops;  not to exceed $800,000 Refundable Reduces income tax liability for the year of purchase Income Limit Adjusted gross income of $125,000 for single or $225,000 for joint tax returns Recapture If home is sold within three years of purchase, entire amount of credit is recaptured Effective Date Purchases with closing/settlement between Nov. 7, 2009, and June 30, 2010 Deadline Written binding contract on or before April 30, 2010, with closing/settlement by June 30, 2010
Tax Credit FAQs
What Are the Deadlines for Claiming the Credit? ,[object Object],[object Object]
What if You Exceed the Income Limits? ,[object Object],[object Object],[object Object]
What Properties are Eligible? ,[object Object],[object Object],[object Object],[object Object]
When Can You Claim the Credit? ,[object Object],[object Object],[object Object],[object Object],[object Object]
Any Other Questions?
How much house can I really afford?
[object Object],Establish  Your  Buying Power
Factors to consider when buying and selling… Source: MLS 1. Inventory(supply and demand) 2. Interest Rates
Interest Rates Remain Low Source: Freddie Mac
The Impact of Pricing on the Salability of Your Home..…
‘ Great speech but does it really work?
We know the best way to evaluate pricing ,[object Object]
We know the best way to evaluate pricing ,[object Object]
2 .  The Effect of  Staging  on the Value of a  Home .
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 .
Non-Staged The Way You Live In Your Home…
…  And The Way We Market And Sell A House Are Two Different Things. Staged
“ The Investment in Home Staging  is  Always Less  than Your  First Price Reduction!”
Non-Staged Buyers Only Know What They See …
…  Not The Way It Is Going To Be. Staged
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.
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.
The average  marketing time  of an ASP Staged vs. non-Staged home is  80% less . Why  Promote  Home Staging  ?
3. The Effect of ‘ Pre-Inspection’  on the Sale of  Your  Home.
What is  ‘ Pre-Inspection?’
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.   
PRE-LISTING Home Inspection DOESN’T THE BUYER DO THE HOME INSPECTION?
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..
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% .
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.
 
 
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.
Weichert Family of Companies What will a real estate company do for me?
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.
[object Object],The Weichert Difference ,[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],What Will a Weichert Agent Do for Me?
We’re Here to Help ,[object Object]
Become a Fan! www.facbook.com/weichertprinceton www.slideshare.net/jdwilton Presentation available at all 3 sites, download file through Monday.
Resource and website list: ,[object Object],[object Object],[object Object],[object Object]
Resource and Website List ,[object Object],[object Object],[object Object]
Resource and Website List: ,[object Object],[object Object]
Resource and website list: ,[object Object],[object Object],[object Object],[object Object]
Happy Thanksgiving!

More Related Content

What's hot

Bank of england and inflation sense of déjà vu
Bank of england and inflation  sense of déjà vuBank of england and inflation  sense of déjà vu
Bank of england and inflation sense of déjà vu
Olivier Desbarres
 
Annie Williams Market Trends Aug-Sept 2014
Annie Williams Market Trends Aug-Sept 2014Annie Williams Market Trends Aug-Sept 2014
Annie Williams Market Trends Aug-Sept 2014
Jon Weaver
 
The Provinces Reset Their Budget Paths
The Provinces Reset Their Budget PathsThe Provinces Reset Their Budget Paths
The Provinces Reset Their Budget Paths
Emily Jackson
 
Annie WilliamsMarket Trends Apr-May 2014
Annie WilliamsMarket Trends Apr-May 2014Annie WilliamsMarket Trends Apr-May 2014
Annie WilliamsMarket Trends Apr-May 2014
Jon Weaver
 
Another Step in Canadian Federal Pension Repair
Another Step in Canadian Federal Pension RepairAnother Step in Canadian Federal Pension Repair
Another Step in Canadian Federal Pension Repair
Emily Jackson
 
Annie Williams Market Trends June/July 2014
Annie Williams Market Trends June/July 2014Annie Williams Market Trends June/July 2014
Annie Williams Market Trends June/July 2014
Jon Weaver
 

What's hot (20)

Bank of england and inflation sense of déjà vu
Bank of england and inflation  sense of déjà vuBank of england and inflation  sense of déjà vu
Bank of england and inflation sense of déjà vu
 
MNI Russia Consumer Report
MNI Russia Consumer ReportMNI Russia Consumer Report
MNI Russia Consumer Report
 
TPL Dec 12 17
TPL Dec 12 17TPL Dec 12 17
TPL Dec 12 17
 
TPL July 12 17
TPL July 12 17TPL July 12 17
TPL July 12 17
 
Olivier desbarres what you may have missed and why it matters
Olivier desbarres   what you may have missed and why it mattersOlivier desbarres   what you may have missed and why it matters
Olivier desbarres what you may have missed and why it matters
 
Market Trends May/June 2013
Market Trends May/June 2013Market Trends May/June 2013
Market Trends May/June 2013
 
Lack of Inventory Plagues Market - Real Estate Report August/September
Lack of Inventory Plagues Market - Real Estate Report August/SeptemberLack of Inventory Plagues Market - Real Estate Report August/September
Lack of Inventory Plagues Market - Real Estate Report August/September
 
Annie Williams Market Trends Aug-Sept 2014
Annie Williams Market Trends Aug-Sept 2014Annie Williams Market Trends Aug-Sept 2014
Annie Williams Market Trends Aug-Sept 2014
 
The Provinces Reset Their Budget Paths
The Provinces Reset Their Budget PathsThe Provinces Reset Their Budget Paths
The Provinces Reset Their Budget Paths
 
Annie Williams Real Estate Report Sept-Oct 2016
Annie Williams Real Estate Report Sept-Oct 2016Annie Williams Real Estate Report Sept-Oct 2016
Annie Williams Real Estate Report Sept-Oct 2016
 
Annie WilliamsMarket Trends Apr-May 2014
Annie WilliamsMarket Trends Apr-May 2014Annie WilliamsMarket Trends Apr-May 2014
Annie WilliamsMarket Trends Apr-May 2014
 
Another Step in Canadian Federal Pension Repair
Another Step in Canadian Federal Pension RepairAnother Step in Canadian Federal Pension Repair
Another Step in Canadian Federal Pension Repair
 
MNI Russia Consumer Sentiment Report, May 2014
MNI Russia Consumer Sentiment Report, May 2014MNI Russia Consumer Sentiment Report, May 2014
MNI Russia Consumer Sentiment Report, May 2014
 
Annie Williams Market Trends June/July 2014
Annie Williams Market Trends June/July 2014Annie Williams Market Trends June/July 2014
Annie Williams Market Trends June/July 2014
 
SVB Q2 2017 Economic Report
SVB Q2 2017 Economic ReportSVB Q2 2017 Economic Report
SVB Q2 2017 Economic Report
 
Quantitative Easing and Mortgage Rates - Real Estate Report November/December
Quantitative Easing and Mortgage Rates - Real Estate Report November/DecemberQuantitative Easing and Mortgage Rates - Real Estate Report November/December
Quantitative Easing and Mortgage Rates - Real Estate Report November/December
 
February 2016 Realtor Report
February 2016 Realtor ReportFebruary 2016 Realtor Report
February 2016 Realtor Report
 
The Current Status and Outlook for the Housing Market Recovery and Mortgage F...
The Current Status and Outlook for the Housing Market Recovery and Mortgage F...The Current Status and Outlook for the Housing Market Recovery and Mortgage F...
The Current Status and Outlook for the Housing Market Recovery and Mortgage F...
 
Home Sales Pop in March - Real Estate Report April/May
Home Sales Pop in March - Real Estate Report April/MayHome Sales Pop in March - Real Estate Report April/May
Home Sales Pop in March - Real Estate Report April/May
 
The Real Estate Report May/June - Prices Hit All-Time Highs
The Real Estate Report May/June - Prices Hit All-Time HighsThe Real Estate Report May/June - Prices Hit All-Time Highs
The Real Estate Report May/June - Prices Hit All-Time Highs
 

Viewers also liked (7)

Princeton Real Estate Market Trends
Princeton Real Estate Market TrendsPrinceton Real Estate Market Trends
Princeton Real Estate Market Trends
 
Princeton Real Estate Market Trends
Princeton Real Estate Market TrendsPrinceton Real Estate Market Trends
Princeton Real Estate Market Trends
 
Executive Summary of the 2015 Princeton Real Estate Market
Executive Summary of the 2015 Princeton Real Estate MarketExecutive Summary of the 2015 Princeton Real Estate Market
Executive Summary of the 2015 Princeton Real Estate Market
 
Signature Chefs - Live Auction Slide Show
Signature Chefs - Live Auction Slide ShowSignature Chefs - Live Auction Slide Show
Signature Chefs - Live Auction Slide Show
 
Live auction powerpoint revised
Live auction powerpoint   revisedLive auction powerpoint   revised
Live auction powerpoint revised
 
Weichert Princeton March 2016 Market Update Seminar
Weichert Princeton March 2016 Market Update SeminarWeichert Princeton March 2016 Market Update Seminar
Weichert Princeton March 2016 Market Update Seminar
 
Hopewell Township Real Estate Executive Summary 2016
Hopewell Township Real Estate Executive Summary 2016Hopewell Township Real Estate Executive Summary 2016
Hopewell Township Real Estate Executive Summary 2016
 

Similar to February 2010 Princeton Market Seminar

Annie Williams Market Trends Nov-Dec 2013
Annie Williams Market Trends Nov-Dec 2013Annie Williams Market Trends Nov-Dec 2013
Annie Williams Market Trends Nov-Dec 2013
Jon Weaver
 

Similar to February 2010 Princeton Market Seminar (20)

September market seminar
September market seminarSeptember market seminar
September market seminar
 
September 2010 Market Seminar
September 2010 Market SeminarSeptember 2010 Market Seminar
September 2010 Market Seminar
 
March 2010 market seminar
March 2010 market seminarMarch 2010 market seminar
March 2010 market seminar
 
October 2011
October 2011October 2011
October 2011
 
December 2011 Market Seminar
December 2011 Market SeminarDecember 2011 Market Seminar
December 2011 Market Seminar
 
January2010marketupdateseminar 100120082607 Phpapp01
January2010marketupdateseminar 100120082607 Phpapp01January2010marketupdateseminar 100120082607 Phpapp01
January2010marketupdateseminar 100120082607 Phpapp01
 
November Market Update Seminar
November Market Update SeminarNovember Market Update Seminar
November Market Update Seminar
 
Robb fleischersf 2019feb
Robb fleischersf 2019febRobb fleischersf 2019feb
Robb fleischersf 2019feb
 
Princeton Real Estate Market Presentation June 2017
Princeton Real Estate Market Presentation June 2017Princeton Real Estate Market Presentation June 2017
Princeton Real Estate Market Presentation June 2017
 
8
88
8
 
Spring 2010 Housing Briefing
Spring 2010 Housing BriefingSpring 2010 Housing Briefing
Spring 2010 Housing Briefing
 
September Market Seminar Part I
September Market Seminar Part ISeptember Market Seminar Part I
September Market Seminar Part I
 
April Market Seminar
April Market SeminarApril Market Seminar
April Market Seminar
 
Annie Williams Market Trends Nov-Dec 2013
Annie Williams Market Trends Nov-Dec 2013Annie Williams Market Trends Nov-Dec 2013
Annie Williams Market Trends Nov-Dec 2013
 
September 2018 Realtor Report
September 2018 Realtor ReportSeptember 2018 Realtor Report
September 2018 Realtor Report
 
Buyers' Fatigue? - The Real Estate Report June/July
Buyers' Fatigue? - The Real Estate Report June/JulyBuyers' Fatigue? - The Real Estate Report June/July
Buyers' Fatigue? - The Real Estate Report June/July
 
Obtaining a Mortgage to Get More Difficult - The Real Estate Report November/...
Obtaining a Mortgage to Get More Difficult - The Real Estate Report November/...Obtaining a Mortgage to Get More Difficult - The Real Estate Report November/...
Obtaining a Mortgage to Get More Difficult - The Real Estate Report November/...
 
November 2018 Realtor Report
November 2018 Realtor ReportNovember 2018 Realtor Report
November 2018 Realtor Report
 
Westfield, MA 01085 Real Estate Market Report January / February 2017
Westfield, MA 01085 Real Estate Market Report January / February 2017Westfield, MA 01085 Real Estate Market Report January / February 2017
Westfield, MA 01085 Real Estate Market Report January / February 2017
 
Annie Williams Real Estate Report - April 2020
Annie Williams Real Estate Report - April 2020Annie Williams Real Estate Report - April 2020
Annie Williams Real Estate Report - April 2020
 

More from Weichert Realtors

More from Weichert Realtors (20)

Weichert, Princeton Fall 2018 Real Estate Market Seminar
Weichert, Princeton Fall 2018 Real Estate Market SeminarWeichert, Princeton Fall 2018 Real Estate Market Seminar
Weichert, Princeton Fall 2018 Real Estate Market Seminar
 
Princeton Q3 Real Estate Market Report
Princeton Q3 Real Estate Market ReportPrinceton Q3 Real Estate Market Report
Princeton Q3 Real Estate Market Report
 
Princeton Real Estate Market Report
Princeton Real Estate Market ReportPrinceton Real Estate Market Report
Princeton Real Estate Market Report
 
NJ Residential Tax Appeal Process
NJ Residential Tax Appeal ProcessNJ Residential Tax Appeal Process
NJ Residential Tax Appeal Process
 
Weichert, Princeton January Market Recap & Forecast
Weichert, Princeton January Market Recap & ForecastWeichert, Princeton January Market Recap & Forecast
Weichert, Princeton January Market Recap & Forecast
 
Princeton Market Forecast in Mandarin
Princeton Market Forecast in MandarinPrinceton Market Forecast in Mandarin
Princeton Market Forecast in Mandarin
 
Princeton Real Estate Market Update December 2017
Princeton Real Estate Market Update December 2017Princeton Real Estate Market Update December 2017
Princeton Real Estate Market Update December 2017
 
South Brunswick, NJ Real Estate Summary
South Brunswick, NJ Real Estate SummarySouth Brunswick, NJ Real Estate Summary
South Brunswick, NJ Real Estate Summary
 
Lawrenceville, NJ Real Estate Market Update
Lawrenceville, NJ Real Estate Market UpdateLawrenceville, NJ Real Estate Market Update
Lawrenceville, NJ Real Estate Market Update
 
Princeton Real Estate October 2017 Market Seminar
Princeton Real Estate October 2017 Market SeminarPrinceton Real Estate October 2017 Market Seminar
Princeton Real Estate October 2017 Market Seminar
 
Executive Summary of West Windsor, NJ Real Estate Trends
Executive Summary of West Windsor, NJ Real Estate TrendsExecutive Summary of West Windsor, NJ Real Estate Trends
Executive Summary of West Windsor, NJ Real Estate Trends
 
Weichert Princeton's June 25 Real Estate Market Seminar
Weichert Princeton's June 25 Real Estate Market SeminarWeichert Princeton's June 25 Real Estate Market Seminar
Weichert Princeton's June 25 Real Estate Market Seminar
 
Princeton Real Estate Inventory Grid
Princeton Real Estate Inventory GridPrinceton Real Estate Inventory Grid
Princeton Real Estate Inventory Grid
 
Princeton Real Estate Market Presentation March 2017
Princeton Real Estate Market Presentation March 2017Princeton Real Estate Market Presentation March 2017
Princeton Real Estate Market Presentation March 2017
 
Tax appeal seminar
Tax appeal seminarTax appeal seminar
Tax appeal seminar
 
Princeton Real Estate 2016 Year in Review
Princeton Real Estate 2016 Year in Review Princeton Real Estate 2016 Year in Review
Princeton Real Estate 2016 Year in Review
 
West Windsor Townhouse Report
West Windsor Townhouse ReportWest Windsor Townhouse Report
West Windsor Townhouse Report
 
Weichert Princeton Office April 2014 Princeton Real Estate Market Seminar
Weichert Princeton Office April 2014 Princeton Real Estate Market SeminarWeichert Princeton Office April 2014 Princeton Real Estate Market Seminar
Weichert Princeton Office April 2014 Princeton Real Estate Market Seminar
 
March 2014 market update seminar public
March 2014 market update seminar publicMarch 2014 market update seminar public
March 2014 market update seminar public
 
Mercer County (Princeton) Homes for Sale Year over Year Comparison
Mercer County (Princeton)  Homes for Sale Year over Year ComparisonMercer County (Princeton)  Homes for Sale Year over Year Comparison
Mercer County (Princeton) Homes for Sale Year over Year Comparison
 

Recently uploaded

Mtp kit Available in Kuwait City +919101817206)) Get Mifty kit in Kuwait City
Mtp kit Available in Kuwait City +919101817206)) Get Mifty kit in Kuwait CityMtp kit Available in Kuwait City +919101817206)) Get Mifty kit in Kuwait City
Mtp kit Available in Kuwait City +919101817206)) Get Mifty kit in Kuwait City
ahmedjiabur940
 
Land as a Resource for urban finanace- 24-1-23.ppt
Land as a Resource  for urban finanace- 24-1-23.pptLand as a Resource  for urban finanace- 24-1-23.ppt
Land as a Resource for urban finanace- 24-1-23.ppt
JIT KUMAR GUPTA
 
Listing Turkey - 2024 - May Featured Portfolio
Listing Turkey - 2024 - May Featured PortfolioListing Turkey - 2024 - May Featured Portfolio
Listing Turkey - 2024 - May Featured Portfolio
Listing Turkey
 

Recently uploaded (20)

Lodha Baner Flat In Pune E-Brochure.pdf
Lodha Baner Flat In Pune  E-Brochure.pdfLodha Baner Flat In Pune  E-Brochure.pdf
Lodha Baner Flat In Pune E-Brochure.pdf
 
Are You Thinking About Buying a Home | KM Realty Group LLC
Are You Thinking About Buying a Home | KM Realty Group LLCAre You Thinking About Buying a Home | KM Realty Group LLC
Are You Thinking About Buying a Home | KM Realty Group LLC
 
Investing-In-Commercial-Real-Estate-2024
Investing-In-Commercial-Real-Estate-2024Investing-In-Commercial-Real-Estate-2024
Investing-In-Commercial-Real-Estate-2024
 
Investing in Dubai's Real Estate in 2024
Investing in Dubai's Real Estate in 2024Investing in Dubai's Real Estate in 2024
Investing in Dubai's Real Estate in 2024
 
Mtp kit Available in Kuwait City +919101817206)) Get Mifty kit in Kuwait City
Mtp kit Available in Kuwait City +919101817206)) Get Mifty kit in Kuwait CityMtp kit Available in Kuwait City +919101817206)) Get Mifty kit in Kuwait City
Mtp kit Available in Kuwait City +919101817206)) Get Mifty kit in Kuwait City
 
Kalpataru Exquisite Wakad Pune E-Brochure.pdf
Kalpataru Exquisite Wakad Pune  E-Brochure.pdfKalpataru Exquisite Wakad Pune  E-Brochure.pdf
Kalpataru Exquisite Wakad Pune E-Brochure.pdf
 
Land as a Resource for urban finanace- 24-1-23.ppt
Land as a Resource  for urban finanace- 24-1-23.pptLand as a Resource  for urban finanace- 24-1-23.ppt
Land as a Resource for urban finanace- 24-1-23.ppt
 
M3M Sector 72 Noida E-Brochure.pdf NEW.
M3M Sector 72 Noida  E-Brochure.pdf NEW.M3M Sector 72 Noida  E-Brochure.pdf NEW.
M3M Sector 72 Noida E-Brochure.pdf NEW.
 
Rohan Harita Tathawade Pune Brochure.pdf
Rohan Harita Tathawade Pune Brochure.pdfRohan Harita Tathawade Pune Brochure.pdf
Rohan Harita Tathawade Pune Brochure.pdf
 
Lodha Baner Flat In Pune E-Brochure.pdf
Lodha Baner  Flat In Pune  E-Brochure.pdfLodha Baner  Flat In Pune  E-Brochure.pdf
Lodha Baner Flat In Pune E-Brochure.pdf
 
San Francisco Market Update -February 2024
San Francisco Market Update -February 2024San Francisco Market Update -February 2024
San Francisco Market Update -February 2024
 
Diego Marynberg: Mastering the Real Estate and Finance Landscape
Diego Marynberg: Mastering the Real Estate and Finance LandscapeDiego Marynberg: Mastering the Real Estate and Finance Landscape
Diego Marynberg: Mastering the Real Estate and Finance Landscape
 
Madhugiri Boucher Managed Farmland (knx)
Madhugiri Boucher Managed Farmland (knx)Madhugiri Boucher Managed Farmland (knx)
Madhugiri Boucher Managed Farmland (knx)
 
Improvise, Adapt, Overcome - Sales Meeting, May '24
Improvise, Adapt, Overcome - Sales Meeting, May '24Improvise, Adapt, Overcome - Sales Meeting, May '24
Improvise, Adapt, Overcome - Sales Meeting, May '24
 
MI NOVA 6+6 LED SURGICAL LIGHTS Morbros India
MI NOVA 6+6 LED SURGICAL LIGHTS Morbros IndiaMI NOVA 6+6 LED SURGICAL LIGHTS Morbros India
MI NOVA 6+6 LED SURGICAL LIGHTS Morbros India
 
M3M Sector 128 at Noida Expressway Noida.pdf
M3M Sector 128 at Noida Expressway Noida.pdfM3M Sector 128 at Noida Expressway Noida.pdf
M3M Sector 128 at Noida Expressway Noida.pdf
 
Nyati Elite NIBM Road Pune E Brochure.pdf
Nyati Elite NIBM Road Pune E Brochure.pdfNyati Elite NIBM Road Pune E Brochure.pdf
Nyati Elite NIBM Road Pune E Brochure.pdf
 
Listing Turkey - 2024 - May Featured Portfolio
Listing Turkey - 2024 - May Featured PortfolioListing Turkey - 2024 - May Featured Portfolio
Listing Turkey - 2024 - May Featured Portfolio
 
construction material procurement in India
construction material procurement in Indiaconstruction material procurement in India
construction material procurement in India
 
Kohinoor Greentastic At Kharadi, Pune - PDF.pdf
Kohinoor Greentastic At Kharadi, Pune - PDF.pdfKohinoor Greentastic At Kharadi, Pune - PDF.pdf
Kohinoor Greentastic At Kharadi, Pune - PDF.pdf
 

February 2010 Princeton Market Seminar

  • 1. Weichert, Princeton Office February 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 www.weichert-princeton.com www.facebook.com/weichertprinceton
  • 3. The presentation will be posted on the following site immediately after today’s session to the following site. Will be available for downloads thru Monday. www.weichert-princeton.com www.facebook.com/weichertprinceton
  • 4.
  • 5.
  • 6. WSJ estimates over $8.4 trillion lost in the stock market crash. Source: wsj
  • 7. From the end of 2006 through March 31, it says, the total market value of U.S. household real estate fell from $21.9 trillion to $17.9 trillion. That's about 18%. (The lost wealth works out at just over $13,000 for every person in the country.) Source: wsj
  • 8. The consequences nationally… http://data.bls.gov/PDQ/servlet/SurveyOutputServlet?data_tool=latest_numbers&series_id=LASST34000003
  • 9. The consequences for NJ… http://data.bls.gov/PDQ/servlet/SurveyOutputServlet?data_tool=latest_numbers&series_id=LASST34000003
  • 11. What about the Real Estate Markets….?
  • 12. A real estate market correction was taking shape the summer of 2001… Inventory was growing… Rates were edging up… Contracts were slowing…
  • 13. 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. Variance % 2009 from 2008 NY (Ashby) -9.26% CT (Doepper) +1.44% Passaic/Hudson/Bergen NJ (Bixon) +.32% Western Central NJ/Lehigh Valley PA (McDonald) +.32% Northern and Central NJ (Prevete) +.28% Eastern Central/Shore Points NJ (Waters) +.08% Southern NJ (Williams) -.03%
  • 14.
  • 15.
  • 16. Forecast for 2010 (mid-Atlantic region) Source: NAR, November 2008 Forecast
  • 17.
  • 18. 2010: More Balanced Market Absorption Rates Jan 2009 vs January 2010 Region 2009 2010 Var % Chappell 3.7 1.6 -56.8% Green 3.4 3.5 2.9% Minsky 11.1 8.1 -27.0% McDonald 21.6 8.9 -58.8% Williams 18.5 9.1 -50.8% Waters 22.5 11.7 -48.0% Prevete 23.5 12.5 -46.8% Bixon 18.8 14.0 -25.5% Doepper 31.2 19.6 -37.2% Ashby 33.5 21.3 -36.4% Total 18.78 11.03 -41.3%
  • 19.
  • 20.
  • 21.
  • 22.
  • 23. Title Theory vs. Lien Theory Generally, foreclosure in Title States occurs through a non-judicial proceeding, while Lien States are conducted via judicial methods; however it varies with each state. This can greatly effect the timing of the foreclosure process. Information obtained from www.realtytrac.com
  • 24.
  • 25. A long term outlook in NJ & Mercer County Source: NAR, November 2008 Forecast
  • 26. NJ Housing Permits Source: Census RESIDENTIAL BUILDING PERMITS AUTHORIZED 2000-2008 COUNTY 2000 2001 2002 2003 2004 2005 2006 2007 2008 Total Atlantic County 1,625 1,685 2,020 2,285 2,075 2,002 1,893 1,136 794 15,515 Bergen County 2,847 1,784 1,771 1,289 2,142 2,972 2,164 2,957 1,311 19,237 Burlington County 2,775 2,184 2,359 1,805 1,516 1,475 2,784 1,037 976 16,911 Camden County 796 757 1,160 1,934 1,413 1,706 1,183 1,191 895 11,035 Cape May County 1,242 1,403 1,422 1,693 2,149 2,433 1,580 1,081 485 13,488 Cumberland County 255 256 310 374 566 630 737 683 336 4,147 Essex County 1,491 1,548 1,588 2,235 2,343 3,128 3,284 1,854 1,314 18,785 Gloucester County 1,337 1,635 1,802 1,859 2,050 2,075 1,141 920 788 13,607 Hudson County 1,338 1,116 1,534 2,116 3,808 4,498 4,275 3,081 3,229 24,995 Hunterdon County 616 685 602 814 648 506 350 316 206 4,743 Mercer County 1,283 1,355 1,428 1,188 1,641 1,296 847 700 625 10,363 Middlesex County 2,460 1,884 1,999 2,306 2,622 3,206 2,567 1,597 1,020 19,661 Monmouth County 2,912 2,194 2,372 2,756 2,628 2,584 2,820 2,060 1,526 21,852 Morris County 2,684 1,577 1,914 1,555 1,427 2,503 1,670 1,052 795 15,177 Ocean County 5,633 3,830 3,534 4,009 3,818 2,904 2,114 2,160 1,527 29,529 Passaic County 457 631 689 829 763 647 850 760 432 6,058 Salem County 161 180 170 307 334 297 298 148 198 2,093 Somerset County 2,282 1,439 1,530 1,260 1,362 1,220 1,058 926 791 11,868 Sussex County 719 808 679 587 612 668 603 360 302 5,338 Union County 776 551 681 1,198 1,399 1,278 1,593 1,123 673 9,272 Warren County 896 765 877 585 620 560 512 258 146 5,219 New Jersey 34,585 28,267 30,441 32,984 35,936 38,588 34,323 25,400 18,369 278,893
  • 27. NJ Housing Permits Source: Census In thousand units
  • 28. Long Term Supply … Source: NAR, November 2008 Forecast Richardson Commercial
  • 29. Long Term Demand in Mercer County … Source: NAR, November 2008 Forecast Source: https://edis.commerce.state.nc.us/docs/countyProfile/NJ/34021.pdf (Mercer County) Population & Growth Population Annual Growth Rate 2013 Total Population 383,677 0.6% 2008 Total Population 371,963 0.7% 2000 Total Population 350,761
  • 30. Long Term Demand in Mercer County … Source: NAR, November 2008 Forecast Source: https://edis.commerce.state.nc.us/docs/countyProfile/NJ/34021.pdf Estimated Pop. by Age Pop by Age, % Est. 2013 Median Age 39 2008 Median Age 38 2000 Median Age 36 2008 Total Pop 0-19 98,816 26.6% 2008 Total Pop 20-29 49,307 13.3% 2008 Total Pop 30-39 49,497 13.3% 2008 Total Pop 40-49 58,288 15.7% 2008 Total Pop 50-59 51,605 13.9% 2008 Total Pop 60+ 64,450 17.3%
  • 31. Fast Forward to today… Have we hit the bottom of the market yet…?!?!?!? Source: NAR, November 2008 Forecast
  • 32. 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)
  • 33. ‘ Real Estate is a Bottom up market…’ “ 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
  • 35. Statistically speaking, there are grounds for modest optimism that prices will trend upward in the near future, said the market analyst Jeffrey Otteau, whose  Otteau Valuation Group continuously tracks sales data in 21 counties for real estate companies. Mr. Otteau cited one recent report indicating that  New Jersey  was one of a half dozen “breakout” states in which prices had already begun to creep up in the second half of 2009. That report came from the Federal Housing Finance Agency, which indexes purchase prices of homes with mortgages guaranteed by Freddie Mac and Fannie Mae. Looking at data from the entire period of the slide — the start of 2006 through the third quarter of 2009 — Mr. Otteau concluded that the state’s residential market “didn’t get hammered all that bad” compared with the nation at large, and was likely to recover faster. Optimism About the New Year… -nytimes.com
  • 36. Local Inventory Trends. Economics 101: As supply goes up, prices go ___. Source: NAR, November 2008 Forecast
  • 37. Listings from TREND MLS in Mercer County
  • 38. Princeton Boro Inventory Trends: 3 Year Snapshot
  • 39. Princeton Twp Inventory Trends: 3 Year Snapshot
  • 42. Ewing Inventory Trends: 4 year View
  • 43. West Windsor Inventory Trends: 4 Year View
  • 45. Closed Homes Snapshot: 2007 2008 2009 Princeton Boro 87 72 61 Princeton Twp. 211 163 157 West Windsor 371 299 303 Lawrence 383 285 305 Hopewell 226 191 153 Plainsboro 273 214 231
  • 46. Town 2007 Inven Count 2007 Pending Sales (prev 30 days) 2007 Absorb Rate 2008 Inven. Count 2008 Pending Sales (prev. 30 days) 2008 Absorp. Rate 2009 Inven. Count 2009 Pending Sales (prev. 30 days) 2009 Absorp. Rate (months) 2010 Inven. Count 2010 Pending Sales (prev. 30 days) 2010 Absorp. Rate (months) Pton. Boro 38 4 9.5 51 0 99 41 0 9 25 7 3.5 Pton. Twp. 105 2 52.5 108 9 11 100 3 33 80 8 10 W. Windsor 137 25 5.4 119 12 7.9 113 15 7.5 96 8 12 Lawrence 172 26 6.6 183 14 13.07 155 13 11.9 201 17 11.8 East Windsor 179 19 9.4 177 21 8.4 176 10 17.6 162 12 13.5 Ewing 189 19 18.6 235 17 13.8 192 10 19.2 227 9 25.5 Hopewell Twp. 163 12 13.5 139 8 17.3 115 12 9.5 127 9 14 Cranbury 13 2 11.5 31 2 15.5 25 1 25 18 1 18 Plainsb. 125 11 11.3 100 14 6.92 70 8 8.75 56 10 5.6 S. Bruns. 197 27 7.3 172 17 10.7 205 10 21 151 18 9 Montgom 132 16 8.2 116 14 8.2 100 9 11.1 104 20 5.2 Hamilton 445 58 13.5 532 46 11.5 524 77 6.6 499 58 9 Cum. 1895 221 8.57 1963 174 11.2 1816 168 10.8 1746 177 9.8
  • 47. 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
  • 48. 1. Understand the Local Market That You are Buying into…
  • 49. Market Absorption Scale (Absorption Rate in Months) 5-6 months absorption rate indicates a normal market.
  • 50. 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 .
  • 51. 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.
  • 52. Town 2007 Inven Count 2007 Pending Sales (prev 30 days) 2007 Absorb Rate 2008 Inven. Count 2008 Pending Sales (prev. 30 days) 2008 Absorp. Rate 2009 Inven. Count 2009 Pending Sales (prev. 30 days) 2009 Absorp. Rate (months) 2010 Inven. Count 2010 Pending Sales (prev. 30 days) 2010 Absorp. Rate (months) Pton. Boro 38 4 9.5 51 0 99 41 0 9 25 7 3.5 Pton. Twp. 105 2 52.5 108 9 11 100 3 33 80 8 10 W. Windsor 137 25 5.4 119 12 7.9 113 15 7.5 96 8 12 Lawrence 172 26 6.6 183 14 13.07 155 13 11.9 201 17 11.8 East Windsor 179 19 9.4 177 21 8.4 176 10 17.6 162 12 13.5 Ewing 189 19 18.6 235 17 13.8 192 10 19.2 227 9 25.5 Hopewell Twp. 163 12 13.5 139 8 17.3 115 12 9.5 127 9 14 Cranbury 13 2 11.5 31 2 15.5 25 1 25 18 1 18 Plainsb. 125 11 11.3 100 14 6.92 70 8 8.75 56 10 5.6 S. Bruns. 197 27 7.3 172 17 10.7 205 10 21 151 18 9 Montgom 132 16 8.2 116 14 8.2 100 9 11.1 104 20 5.2 Hamilton 445 58 13.5 532 46 11.5 524 77 6.6 499 58 9 Cum. 1895 221 8.57 1963 174 11.2 1816 168 10.8 1746 177 9.8
  • 53. 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 25 7 3.5 5 (2) 3 12% 1 0 2 Pton -Boro Condo/ Thouses 9 1 9 1 0 1 11% 0 0 1 Pton-Boro Single Family 16 6 2.6 4 (2) 2 13% 1 0 1 Pton Twp: All Styles 80 8 10 18 10 17 22% 2 4 4 Pton Twp: Condo/ Thouses 12 5 2.4 7 2 3 25% 0 2 2 Pton Twp: Single Family 68 3 22.6 11 8 14 21% 2 2 2
  • 54. 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 98 8 12 32 24 13 14% 1 9 11 West Windsor Condo/ T.Houses 19 2 9.5 5 3 3 16% 1 2 3 West Windsor 55+ 14 0 99 1 1 0 0 0 0 0 West Windsor Single Family 63 6 10.5 26 20 10 15% 0 7 8 Lawrence: All Styles 210 17 11.8 43 26 27 13% 10 6 7 Lawrence: Condo/ THouses 61 6 10.1 10 4 15 24% 4 0 2 Lawrence: 55+ 26 0 99 6 6 0 0 3 2 1 Lawrence: Single Family 114 11 10.3 27 16 12 11% 3 4 4
  • 55. 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 227 9 25.2 58 49 39 17% 10 4 16 Ewing : Condo/ T.Houses 41 2 20.5 14 121 3 8% 3 1 4 Ewing 55+: 4 0 99 0 0 0 0 0 0 0 Ewing: Single Family 182 7 26 44 37 36 20% 7 3 12 East Windsor: All Styles 162 12 13.5 42 30 24 15% 7 0 10 East Windsor: Condo/ THouses 84 11 7.6 16 5 11 13% 5 0 6 East Windsor: 55+ 21 0 99 11 11 0 0 1 0 1 East Windsor: Single Family 57 1 57 15 14 13 23% 1 0 3
  • 56. 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 127 9 14 28 19 23 18% 9 7 11 Hopewell Twp. Condo/ T.Houses 7 1 7 1 0 1 14% 1 0 2 Hopewell Twp.: 55+ 3 0 99 - - - - - - - Hopewell Twp Single Family 117 8 15 27 19 22 19% 8 7 9 Hamilton: All Styles 499 58 9 139 81 87 17% 30 30 38 Hamilton: Condo/ THouses 98 14 7 34 20 16 16% 9 3 0 Hamilton: Single Family 368 38 10 105 67 71 19% 21 27 38 Hamilton: 55+ 33 6 5.5 - - - - - - -
  • 57. 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 89 18 5 29 11 17 19% 5 5 3 Robbinsville Condo/ T.Houses 48 12 4 21 9 10 21% 3 3 3 Robbinsville 55+ - - - - - - - - - - Single Family 41 6 7 8 2 7 17% 2 2 0 Hightstown Boro: All Styles 56 4 14 14 10 6 11% 2 0 4 Pennington 21 2 10.5 6 4 3 14% 1 1 1 Hopewell Boro: All Styles 16 0 99 3 3 2 13% 2 0 1
  • 58. 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 56 10 5.6 20 10 9 16% 5 0 1 Plainsboro Condo/ THouses 31 4 7.7 12 8 3 9% 3 0 0 Plainsboro 55+ 8 0 99 1 1 4 50% 1 0 0 Plainsboro Single Family 17 6 2.8 7 1 2 11% 1 0 1 Cranbury: All Styles 18 1 18 3 2 1 5% 4 0 0 Cranbury: 55+ 1 0 99 0 0 0 0 0 0 0 Cranbury: Single Family 17 1 17 3 2 1 5% 4 0 0
  • 59. 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 151 18 9 52 34 12 8% 12 4 20 South Brunswick Condo/ T.Houses 28 6 5 17 11 1 6% 1 0 8 South Brunswick 55+ 33 1 33 11 10 1 30% 2 2 1 South Brunswick Single Family 90 7 13 24 17 10 11% 9 2 11 Monroe: All Styles 388 24 16 100 76 45 12% 38 4 27 Monroe: 55+ 237 21 13 52 31 31 13% 24 2 18 Monroe: Single Family 151 3 50 48 45 14 9% 14 2 9
  • 60. 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. 104 20 5.2 44 24 20 20% 5 4 6 Hillsboro 178 32 5.5 52 20 32 18% 15 12 15 Rocky Hill 4 0 99 2 2 - - - - - Franklin 384 45 8.5 134 89 63 16% 37 13 25
  • 61. Open House Guest Comparison
  • 62. Months Supply of Lower Priced Single Family Homes Falling (national) Source: NAR (Unpublished data) Price Category August 2008 August 2009 $99,999 or less 6.8 4.3 $100,000 to 249,999 7.8 4.9 $250,000 to $499,999 10.2 6.4 $500,000 to $749,999 14.0 10.0 $750,000 to $999,999 16.5 10.5 $1,000,000 to $1,999,999 19.8 15.2 $2,000,000 or greater 32.0 31.7 All Single-family 10.0 8.2
  • 63. Source: otteau.com, 4 th quarter 2009
  • 64. 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. Note: This Market Scale is valid only for absorption rates between 1 and 12 months. Market Absorption in Months 1 2 3 4 5 6 7 8 9 10 11 12 Normal
  • 65. Princeton Boro Absorption Rate By Price Towns Active Listings Pending in Last 30 Days Absorption Rate in Months 0-$500 8 2 4 $500-750k 6 0 99 $750-999 1 2 (.5) $999 + 11 1 11
  • 66. West Windsor Absorption Rate By Price Towns Active Listings Pending in Last 30 Days Absorption Rate in Months 0-$350 27 3 9 $350-750 31 5 6.2 $750-999 13 2 6.5 $999 + 6 0 99
  • 67. Hopewell Absorption Rate By Price Towns Active Listings Pending in Last 30 Days Absorption Rate in Months 0-$350 58 6 9.6 $350-750 25 1 25 $750-999 21 0 99 $999 + 33 0 99
  • 68. Ewing Absorption Rate By Price Towns Active Listings Pending in Last 30 Days Absorption Rate in Months $0-100 12 0 99 $100-200 80 4 20 $200-350 122 10 12.2 350-450 12 2 6 450+ 1 0 99
  • 69. Understand the Market That You are Buying/ Selling in… I want to live/ sell in Princeton…..
  • 70. Market Absorption Scale (Absorption Rate in Months) 5-6 months absorption rate indicates a normal market.
  • 71. Princeton Twp. 84 current active listings 6 reported sales in last 30 days = 14 months absorption rate 5-6 Months Market Absorption Rate indicates a normal market. All Prices: All Styles
  • 72. Princeton Twp. 14 current active listings 2 reported sales in last 30 days = 7 months absorption rate 5-6 Months Market Absorption Rate indicates a normal market. 0-$600, All Styles
  • 73. Princeton Twp. 6 current active listings 3 reported sales in last 30 days = 3 months absorption rate 5-6 Months Market Absorption Rate indicates a normal market. 0-$600k Townhouses
  • 74. Princeton Twp. 44 current active listings 0 reported sales in last 30 days = 99 months absorption rate 5-6 Months Market Absorption Rate indicates a normal market. 999+ Single Family
  • 75. 2. ‘I am going to time the Market and buy/ sell at the time when inventory & buyer count is in my favor…’ Source: MLS
  • 76. Weekly Guests Thru the Weichert Princeton Open Houses, 2009
  • 77. Source: MLS Inventory Levels, Princeton Twp. New Jersey, 2009
  • 78. 3. ‘I am going to wait until the price comes down further and then make an offer/ if I lower my price I will get lower bids… Source: MLS
  • 79. Source: trend mls Relationship of Price Reductions to ‘Pending Sales’
  • 80. Town by Town Analysis 9/21/09 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 21 9 54 3 22 11% 21 18 36 South Brunswick Condo/ T.Houses 61 10 6 27 17 8 13% 6 8 16 South Brunswick 55+ 30 1 30 2 1 3 1% 2 3 3 South Brunswick Single Family 105 11 9.5 25 14 11 10% 13 7 21
  • 81. Source: trend mls Relationship of Price Reductions to ‘Pending Sales’
  • 82. Source: trend mls Relationship of Price Reductions to ‘Pending Sales’
  • 83. Source: trend mls Relationship of Price Reductions to ‘Pending Sales’
  • 85.
  • 86.
  • 87. Kevin Reilly, Vice President Weichert Financial Services Financial Benefits and Process of Home-Ownership.
  • 88. ‘ I don’t want to buy a house and then watch it drop in value!’
  • 89.   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
  • 90.   Purchase Price $329,000 Loan Amount $317400 Down Payment $11,515 Monthly P&I $1802 Appreciation/Depreciation Home Value 1st Year 5 $319,130 2nd Year 3% $319,130 3rd Year 2% $322,321 4th Year 2% $331,990 5th Year 2% $348,590 5 Year Appreciation/Depreciation $48,590 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 $73,529 Create Equity v Pay Rent
  • 91. + The Amortization Schedule 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
  • 92. Appreciation (conservitive): $19,500 + Amortization: $20,109 + Tax Benefit of Home Ownership $25,000 + Tax Credit: $8000 + Low Interest Rates: $5000 ___________________ total 5 year gain = $77,609
  • 93.
  • 94.
  • 95. The NEW First-Time Buyer Tax Credit Amount 10 percent of the cost of the home, not to exceed $8,000 Property Any home that will be used as a principal residence including single-family homes, condos, townhomes and co-ops; not to exceed $800,000 Refundable Reduces income tax liability for the year of purchase Income Limit Adjusted gross income of $125,000 for single or $225,000 for joint tax returns INCREASED (Effective Nov. 7, 2009) ! First-Time Must not have owned a principal residence in three years prior to purchase Limitation If home is sold within three years of purchase, entire amount of credit is recaptured Effective Date Purchases with closing/settlement between Nov. 7, 2009, and June 30, 2010 EXTENDED ! Deadline Written binding contract on or before April 30, 2010, with closing/settlement by June 30, 2010 EXTENDED !
  • 96. The NEW Current Homeowner Tax Credit Amount Up to $6,500 Eligibility Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years Purchased Home Any home that will be used as a principal residence including single-family homes, condos, townhomes and co-ops; not to exceed $800,000 Refundable Reduces income tax liability for the year of purchase Income Limit Adjusted gross income of $125,000 for single or $225,000 for joint tax returns Recapture If home is sold within three years of purchase, entire amount of credit is recaptured Effective Date Purchases with closing/settlement between Nov. 7, 2009, and June 30, 2010 Deadline Written binding contract on or before April 30, 2010, with closing/settlement by June 30, 2010
  • 98.
  • 99.
  • 100.
  • 101.
  • 103. How much house can I really afford?
  • 104.
  • 105. Factors to consider when buying and selling… Source: MLS 1. Inventory(supply and demand) 2. Interest Rates
  • 106. Interest Rates Remain Low Source: Freddie Mac
  • 107. The Impact of Pricing on the Salability of Your Home..…
  • 108. ‘ Great speech but does it really work?
  • 109.
  • 110.
  • 111. 2 . The Effect of Staging on the Value of a Home .
  • 112. 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 .
  • 113. Non-Staged The Way You Live In Your Home…
  • 114. … And The Way We Market And Sell A House Are Two Different Things. Staged
  • 115. “ The Investment in Home Staging is Always Less than Your First Price Reduction!”
  • 116. Non-Staged Buyers Only Know What They See …
  • 117. … Not The Way It Is Going To Be. Staged
  • 118. 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.
  • 119. 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.
  • 120. The average marketing time of an ASP Staged vs. non-Staged home is 80% less . Why Promote Home Staging ?
  • 121. 3. The Effect of ‘ Pre-Inspection’ on the Sale of Your Home.
  • 122. What is ‘ Pre-Inspection?’
  • 123. 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.  
  • 124. PRE-LISTING Home Inspection DOESN’T THE BUYER DO THE HOME INSPECTION?
  • 125. 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..
  • 126. 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% .
  • 127. 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.
  • 128.  
  • 129.  
  • 130. 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.
  • 131. Weichert Family of Companies What will a real estate company do for me?
  • 132. 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.
  • 133.
  • 134.
  • 135.
  • 136. Become a Fan! www.facbook.com/weichertprinceton www.slideshare.net/jdwilton Presentation available at all 3 sites, download file through Monday.
  • 137.
  • 138.
  • 139.
  • 140.

Editor's Notes

  1. 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.
  2. (elicit responses)
  3. (elicit responses)
  4. 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.
  5. 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.
  6. 28
  7. 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.
  8. 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.
  9. 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.
  10. 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.
  11. 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.
  12. 28
  13. 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.
  14. 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.
  15. New Stats Pulled Off StagedHomes.com
  16. 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.
  17. 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.
  18. 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.
  19. 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.
  20. 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.