Princeton Real Estate Market Presentation March 2017

Princeton Real Estate Market Presentation March 2017
Princeton AreaPrinceton Area Real Estate Market UpdateReal Estate Market Update March 2017March 2017 Josh Wilton Managing Broker Weichert Realtors Princeton Office
“ Dave Ramsey Financial Guru When getting help with money, whether it is insurance, real estate or investments you should always look for someone with the heart of a teacher, not the heart of a salesman.
Agenda The Market: The Big Picture Understanding the Local Market(s) You’re Buying Into or Selling Out Of Process and Strategies for Buyers and Sellers Real Estate Market UpdateReal Estate Market Update Agenda
Real Estate Market UpdateReal Estate Market Update What are you hearing about the market?
The National Picture
6
Economic factors 7 Now 2013 2010 Gas per gallon (NY area) $2.45 $3.81 $2.73 Stock market (Dow Jones) 20,596 14,776 11,578 Avg. 30-year fixed rate 3.99% 4.43% 4.71% Consumer confidence rating 113.7 76.2 63.4 Household income $56,516 $53,046 $49,276 Unemployment rate 4.7% 7.4% 9.3% Foreclosures 848,609 1,369 ,405 2,871,891 2010 to Current Comparisons
Listing Inventory 8 • BIG deal in 2016 • BIGGER deal in 2017 • Existing inventory levels down 11% over a year (nationally)
Sellers Unwilling to Budge 9 • Unwilling to forego existing low mortgage rates • Reduce risk • Median Tenure in Home at All-Time High • The low-hanging fruit will be gone, and there are too many agents in our market who do not know how to consistently find and build business.*
Median Seller Tenure In Home 10
Affordability 11 • Basic Economic Lesson: Thin inventory Higher buyer demand Prices Rise
Snapshot of 2017 NAR Forecasts 12 • Home PricesHome Prices expected to rise 3.9% nationwide • Existing Home SalesExisting Home Sales increase 1.9% to 5.46 Million homes • Mortgage RatesMortgage Rates to reach 4.5% • Homeownership RatesHomeownership Rates stabilize at 63.5% (after bottoming out at 62.9% in 2016) • New Home SalesNew Home Sales increase 10%, new home starts rise 3%
First-Time Homebuyers make up Majority of 2017 Home buyers* 13 • 52% First Time Homebuyers • 61% Millennial Buyers (35 years and under) • Millennials skip over starter homes for move-up properties • NAR reported in 2016 17% of buyers under 25 year saved down payment monies within one year
Millennials 14 Barrier to homeownership •#1 Affordability & Mortgage Qualifying 37% •#2 Finding a home within budget 30%
Millennials 15 Competition for the Suburbs •#1 Preferred Location ~ 50% of respondents •80% of Residential Growth to occur in suburban communities over the next 10 years
Millennials 16 • SURBAN: Blend of Urban and Suburban living provides the best of both worlds  Walk to work  Enjoy pedestrian access to groceries  Near entertainment  Youth & Sport friendly parks  Strong Public Schools
Source: 5 Real Estate Trends That Will Dominate 2016. Realtormag.realtor.org. • Rental costs are skyrocketing, and the costs are likely to only go up in the new year. More than 85 percent of the nation’s markets have rents that exceed 30 percent of the income of renting households. • YTD in Princeton landlords have retained 100% of their asking price. Rents go up even higher
The boom….The New Jersey MarketThe Statewide Picture
The New Jersey MarketThe Statewide Picture Source: NJAR 10K Research Closed Sales 2017
The New Jersey MarketThe Statewide Picture Source: NJAR 10K Research Pending Home Sales YTD
The New Jersey MarketThe Statewide Picture Source: NJAR 10K Research Average Sales Price 2017
The New Jersey MarketThe Statewide Picture Source: NJAR 10K Research Days on Market 2017
The New Jersey MarketThe Statewide Picture Source: NJAR 10K Research List to Sale Price % 2017
The New Jersey MarketThe Statewide Picture Source: NJAR 10K Research
The Local Market Real Estate is Local It’s Local to the County It’s Local to the Town It’s Local to the Price Point It’s Local to the Neighborhood/Development It’s Local to the Street Real Estate is Local
Icando myownlocal researchonline… You’re probably thinking….
Online Estimates If the estimate is accurate within 5% you’re talking about a $50,000 spread on a $500,000 estimate The home value could be anywhere from $475,000 - $525,000 And they’re only that close a third of the time
The boom….The Local MarketThe Local Picture
Mercer County Supply & Demand Price Trends Source: NAR, November 2008 Forecast The Local Picture
Long Term Demand … Source: NAR, November 2008 Forecast http://lwd.dol.state.nj.us/labor/lpa/dmograph/est/est_index.html Long Term Demand for Housing 2008 2009 2010 2011 2012 2013 2014 2015 2016
Long Term Demand … Source: NAR, November 2008 Forecast http://lwd.dol.state.nj.us/labor/lpa/pub/factbook/merfct.pdf Long Term Demand for Housing
Source: NJAR 10K Research Data Mercer/ Middlesex County Market Drivers 1. Trains/Schools/Affordability 2. Schools/Trains/Affordability 3. Convenience/Town Center/Lifestyle 4. Affordability 5. Schools 6. Trains
Source: NJAR 10K Research Data West Windsor Train Schools Lifestyle Affordability
Source: NJAR 10K Research DataSource: https://education.state.nj.us/pr/
West Windsor Market Activity Single Family Homes Average Sale Price 2012 2013 2014 2015 2016
West Windsor Market Activity Single Family Homes Average Days on Market 2012 2013 2014 2015 2016
West Windsor Market Activity Single Family Homes List to Sale Price Ratio 2012 2013 2014 2015 2016
West Windsor Market Activity Condos & Townhouses Average Sale Price 2012 2013 2014 2015 2016
West Windsor Market Activity Condos & Townhouses Average Days on Market 2012 2013 2014 2015 2016
West Windsor Market Activity Condos & Townhouses List to Sale Price Ratio 2012 2013 2014 2015 2016
West Windsor Market Activity Condos & Townhouses – Canal/Colonnade Point Average Sale Price 2012 2013 2014 2015 2016
West Windsor Market Activity Condos & Townhouses – Canal/Colonnade Point Average Days on Market 2012 2013 2014 2015 2016
West Windsor Market Activity Condos & Townhouses – Canal/Colonnade Point Average List to Sale Price Ratio 2012 2013 2014 2015 2016
Open House Report
Source: NJAR 10K Research Data
Source: NJAR 10K Research Data West Windsor Median Sales Price 2006 – YTD 2017
Source: NJAR 10K Research Data Plainsboro Train Schools Lifestyle Affordability
Plainsboro Market Activity Single Family Homes Average Sale Price 2012 2013 2014 2015 Source: Middlesex MLS 2016
Plainsboro Market Activity Single Family Homes Average Days on Market Source: Middlesex MLS 2012 2013 2014 2015 2016
Plainsboro Market Activity Single Family Homes List to Sale Price Ratio Source: Middlesex MLS 2012 2013 2014 2015 2016
Plainsboro Market Activity Condos & Townhouses Average Sale Price Source: Middlesex MLS 2012 2013 2014 2015 2016
Plainsboro Market Activity Condos & Townhouses Average Days on Market Source: Middlesex MLS 2012 2013 2014 2015 2016
Plainsboro Market Activity Condos & Townhouses List to Sale Price Ratio Source: Middlesex MLS 2012 2013 2014 2015 2016
Source: NJAR 10K Research DataSource: NJAR 10K Research East Windsor Train Schools Lifestyle Affordability
East Windsor Market Activity Single Family Homes Average Sale Price 2012 2013 2014 2016 Source: Trend MLS 2015
East Windsor Market Activity Single Family Homes Average Days on Market Source: Trend MLS 2012 2013 2014 20162015
East Windsor Market Activity Single Family Homes List to Sale Price Ratio Source: Trend MLS 2012 2013 2014 20162015
East Windsor Market Activity Condos & Townhouses Average Sale Price Source: Trend MLS 2012 2013 2014 20162015
East Windsor Market Activity Condos & Townhouses Average Days on Market Source: Trend MLS 2012 2013 2014 20162015
East Windsor Market Activity Condos & Townhouses List to Sale Price Ratio Source: Trend MLS 2012 2013 2014 20162015
Source: NJAR 10K Research Data Lawrenceville Train Schools Lifestyle Affordability
Lawrenceville Market Activity Single Family Homes Average Sale Price 2012 2013 2015 Source: TrendMLS 2014 2016
Lawrenceville Market Activity Single Family Homes Average Days on Market Source: TrendMLS 2012 2013 20152014 2016
Lawrenceville Market Activity Single Family Homes List to Sale Price Ratio Source: TrendMLS 2012 2013 20152014 2016
Lawrenceville Market Activity Condos & Townhouses Average Sale Price Source: TrendMLS 2012 2013 20152014 2016
Lawrenceville Market Activity Condos & Townhouses Average Days on Market Source: TrendMLS 2012 2013 20152014 2016
Lawrenceville Market Activity Condos & Townhouses List to Sale Price Ratio Source: TrendMLS 2012 2013 20152014 2016
Source: NJAR 10K Research DataSource: NJAR 10K Research Robbinsville Train Schools Lifestyle Affordability
Source: NJAR 10K Research DataSource: NJAR 10K Research
Robbinsville Market Activity Single Family Homes Average Sale Price 2012 2013 2014 2015 Source: Trend MLS 2016
Robbinsville Market Activity Single Family Homes Average Days on Market Source: Trend MLS 2012 2013 2014 2015 2016
Robbinsville Market Activity Single Family Homes List to Sale Price Ratio Source: Trend MLS 2012 2013 2014 2015 2016
Robbinsville Market Activity Condos & Townhouses Average Sale Price Source: Trend MLS 2012 2013 2014 2015 2016
Robbinsville Market Activity Condos & Townhouses Average Days on Market Source: Trend MLS 2012 2013 2014 2015 2016
Robbinsville Market Activity Condos & Townhouses List to Sale Price Ratio Source: Trend MLS 2012 2013 2014 2015 2016
Source: NJAR 10K Research DataSource: NJAR 10K Research South Brunswick Train Schools Lifestyle Affordability
South Brunswick Market Activity Single Family Homes Average Sale Price Source: Middlesex MLS 2012 2013 2014 2015 2016
South Brunswick Market Activity Single Family Homes Average Days on Market Source: Middlesex MLS 2012 2013 2014 2015 2016
South Brunswick Market Activity Single Family Homes List to Sale Price Ratio Source: Middlesex MLS 2012 2013 2014 2015 2016
South Brunswick Market Activity Condos & Townhouses Average Sale Price Source: Middlesex MLS 2012 2013 2014 2015 2016
South Brunswick Market Activity Condos & Townhouses Average Days on Market Source: Middlesex MLS 2012 2013 2014 2015 2016
South Brunswick Market Activity Condos & Townhouses List to Sale Price Ratio Source: Middlesex MLS 2012 2013 2014 2015 2016
Source: NJAR 10K Research DataSource: NJAR 10K Research Princeton Train Schools Lifestyle Affordability
Source: NJAR 10K Research DataSource: NJAR 10K ResearchSource: TrendMLS
Princeton Market Activity Single Family Homes Average Sale Price 2012 2013 2014 Source: TrendMLS 2015 2016
Princeton Market Activity Single Family Homes Average Days on Market 2012 2013 2014 Source: TrendMLS 2015 2016
Princeton Market Activity Single Family Homes List to Sale Price Ratio 2012 2013 2014 Source: TrendMLS 2015 2016
Princeton Market Activity Condos & Townhouses Average Sale Price 2012 2013 Source: TrendMLS 2014 2015 2016
Princeton Market Activity Condos & Townhouses Average Days on Market Source: TrendMLS 2012 2013 2014 2015 2016
Princeton Market Activity Condos & Townhouses List to Sale Price Ratio Source: TrendMLS 2012 2013 2014 2015 2016
The Local Market Real Estate is Local It’s Local to the Town It’s Local to the Price Point It’s Local to the Neighborhood/Development It’s Local to the Street Real Estate is Local
Strategies for Buying and Selling in Today’s Market
Source: NJAR 10K Research Data When’s the best time to Buy/Sell? Source: Trend MLS
Be Strategic Think Hyper Local
Princeton Market Activity Style Active Listings Under Contract in 30 Days Absorption Rate New Listings in 30 Days Net Inventory Gain/Loss Price Reductions in 30 Days % of Invent. Reduced Closed Sales in 30 days All Styles 102 16 6.4 41 25 12 11.8 24 Single Family 87 13 6.7 32 19 10 11.5 20 Condo/ Townhouse 15 3 5 9 6 2 1.3 4 Princeton SF ($1million) 37 10 3.7 10 0 3 8%
Robbinsville Market Activity Style Active Listings Under Contract in 30 Days Absorption Rate New Listings in 30 Days Net Inventory Gain/Loss Price Reductions in 30 Days % of Invent. Reduced Closed Sales in 30 days All Styles 106 17 6.2 27 10 2 2% 11 Single Family 65 10 6.5 17 7 1 2% 4 Condo/ Townhouse 37 7 5.3 10 3 1 3% 7 Adult Community 4 0 99 0 0 0 0 0
West Windsor Market Activity Style Active Listings Under Contract in 30 Days Absorption Rate New Listings in 30 Days Net Inventory Gain/Loss Price Reductions in 30 Days % of Invent. Reduced Closed Sales in 30 days All Styles 80 23 3.5 42 19 15 18.7 17 Single Family 65 18 3.6 35 17 11 16.9 13 Condo/ Townhouse 15 5 3 6 1 4 26.7 3 Adult Community 5 0 5 1 1 0 0 1 3-15-17
Lawrence Market Activity Style Active Listings Under Contract in 30 Days Absorption Rate New Listings in 30 Days Net Inventory Gain/Loss Price Reductions in 30 Days % of Invent. Reduced Closed Sales in 30 days All Styles 132 28 5 43 15 23 17% 20 Single Family 84 14 6 24 10 14 17% 13 Condo/ Townhouse 43 14 3 17 3 9 21% 5 Adult Community 5 0 999 2 2 0 0% 2
Plainsboro Market Activity Style Active Listings Under Contract in 30 Days Absorption Rate New Listings in 30 Days Net Inventory Gain/Loss Price Reductions in 30 Days % of Invent. Reduced Closed Sales in 30 days All Styles 63 17 4 25 8 20 32 8 Single Family 25 8 3 13 5 9 36 1 Condo/ Townhouse 31 8 4 12 4 9 29 7 Adult Community 7 1 7 0 -1 2 29 0
Hillsborough Market Activity Style Active Listings Under Contract in 30 Days Absorption Rate New Listings in 30 Days Net Inventory Gain/Loss Price Reductions in 30 Days % of Invent. Reduced Closed Sales in 30 days All Styles 121 55 2.2 50 (5) 14 12 25 Single Family 81 38 2.1 32 (6) 8 10 12 Condo/ Townhouse 32 17 1.9 14 (3) 5 16 13 Adult Community 8 0 99 4 4 1 13 0
Montgomery Market Activity Style Active Listings Under Contract in 30 Days Absorption Rate New Listings in 30 Days Net Inventory Gain/Loss Price Reductions in 30 Days % of Invent. Reduced Closed Sales in 30 days All Styles 104 18 5.8 39 21 14 13 32 Single Family 92 12 7.7 31 19 14 15 15 Condo/ Townhouse 12 5 2.4 8 3 0 25 4 Adult Community 0 1 0 0 (1) 0 0 3
Hamilton Market Activity Style Active Listings Under Contract in 30 Days Absorption Rate New Listings in 30 Days Net Inventory Gain/Loss Price Reductions in 30 Days % of Invent. Reduced Closed Sales in 30 days All Styles 356 101 3.5 125 24 90 25 80 Single Family 280 86 3.3 101 15 73 26 66 Condo/ Townhouse 60 13 4.6 19 6 12 20 12 Adult Community 16 2 8 5 3 5 31 2
Monroe Market Activity Style Active Listings Under Contract in 30 Days Absorption Rate New Listings in 30 Days Net Inventory Gain/Loss Price Reductions in 30 Days % of Invent. Reduced Closed Sales in 30 days All Styles 344 57 6 135 78 121 35.1% 52 Single Family 181 20 9.1 65 45 63 34.8% 17 Condo/ Townhouse 13 0 ∞ 3 3 11 84.6% 0 Adult Community 150 37 4.1 67 30 47 31.3% 35
Cranbury Market Activity Style Active Listings Under Contract in 30 Days Absorption Rate New Listings in 30 Days Net Inventory Gain/Loss Price Reductions in 30 Days % of Invent. Reduced Closed Sales in 30 days All Styles 21 6 3.5 11 5 16 76.2% 2
Hopewell Boro Market Activity Style Active Listings Under Contract in 30 Days Absorption Rate New Listings in 30 Days Net Inventory Gain/Loss Price Reductions in 30 Days % of Invent. Reduced Closed Sales in 30 days All Styles 14 6 2.3 3 -3 4 29% 0 Pennington Boro Market Activity Style Active Listings Under Contract in 30 Days Absorption Rate New Listings in 30 Days Net Inventory Gain/Loss Price Reductions in 30 Days % of Invent. Reduced Closed Sales in 30 days All Styles 23 1 23 5 4 4 17% 4
Year over Year Inventory & Ab Rate Week of 3/25 Town 2011 Inventory 2011 Ab Rate 2013 Inventory 2013 Ab Rate 2015 Inventory 2015 Ab Rate 2017 Inventory 2017 Ab Rate Princeton 180 27 120 8.6 88 5.5 102 6.4 West Windsor 102 6.8 64 2.7 86 3.74 80 3.5 Law 209 19 144 12 156 12 132 5 Hamilton 598 32 406 8.8 417 7.4 356 4.6 Ewing 270 15 206 10 201 10 144 4.5 Plainsb 100 11 65 3.8 69 6.9 63 4 Mont 151 10.7 99 5.8 108 6.3 104 5.8
2017 Top Seller Negotiating Strategies… 1.Price it Right 2.Stage it (Pretty it Up) 3.Fix it First 4.Stay in Control
All Negotiations, including real estate, are all about negotiation and control. Home Pricing Who is in control?
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. What is Home Staging?
Clean & In Good Repair
“Wow…. I could live here!”
Buyers Only Know What They See …
Home Staging *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. 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 investment in home staging is always less than your first price reduction!”
All Negotiations, including real estate, are all about negotiation and control. Home Staging Who is in control?
The Impact of Inspection & Repairs on the Salability of Your Home..… A Certified Home Inspector’s report will review: Condition of the home's HVAC, Plumbing and Electrical Systems The roof, attic, and visible insulation Walls, ceilings, floors, windows and doors The foundation, basement, and visible structure It will also advise if any potential environmental hazards were observed
• Why do a Pre-Inspection? – Fix/ Disclose/ Permit EVERYTHING before going on market – Removes buyer objections/ fears – Reduce the risk of going ‘off market’ for a buyer who ends up killing the deal – You stay in control Pre-Inspection
All Negotiations, including real estate, are all about negotiation and control. Pre - Inspection Who is in control?
The Impact of Your Initial List Price
• Promotes a sense of urgency among buyers & agents (fear of loss) • Generates interest and showings • Sets the stage for multiple offers in the first 30 days • Offers tend to be higher in relation to list price • Results in highest price in shortest time Effects of “Right” Pricing
• Buyer excitement diminishes quickly • Extends time house is on the market • Results in price reductions • May attract “bargain hunters” and discounted offers • Results in a lower selling price Effects of Over Pricing:
Negotiations are about leverage, use the listing price as yours… PTA suggested Market Value of $780,000 Listed at $769,000 8 Days on Market 11 Offers Sold for $805,000 The seller had control West Windsor
Princeton 36 Mercer St. The Price Trend Analysis suggested Market Value of $1.250 We recommended listing at $1.1 million
Princeton 36 Mercer St. • Pre-inspection • Staged • Right Pricing Sold for $1.350 million, cash in 7 days. No contingencies.
Negotiations are about leverage, use the listing price as yours… Listed at $544,900 Reduced to $535,000 Reduced to $509,000 Reduced to $499,000 96 Days on Market 1 Offer Sold for $490,000 The buyer had control
2017 Top Buyer Negotiating Strategies… 1.Pay Now or Pay More Later (core market, schools, trains and towns) 2.Don’t Wait to Offer on an Over-Priced Home 3.Use an Escalation Clause in High-Demand Markets & in multiple bid situations
Buyer Negotiation Tips in a Fast Market 1. Understand the process before you start shopping. 2. Have mortgage pre-approval from a local, respected, reliable lender 3. Put a significant amount in escrow if possible 4. Be as flexible as possible with your closing date 5. Remove as many contingencies as possible (inspection, appraisel, etc) 6. Use an Escalation Clause
Real Estate Market UpdateReal Estate Market Update FinancingFinancing What You Need to KnowWhat You Need to Know Carlos A. Machado Gold Services Manager Princeton Office NMLS #4384 Weichert Financial Services 908-307-8317 cmachado@weichertfinancial.com
The Mortgage Market Fed raises interest rates…. For just the third time in a decade, the Federal Reserve has increased short-term interest rates (federal funds rate), by 0.25 percent. That key rate influences many other interest rates such as the prime. And also indirectly influences longer-term rates for mortgages.
Mortgage Rate Projections 3/2017
Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association
We will help you to find out your Purchase Power !
Which Group is Most Sensitive to Interest Rates? Source: First American Real Estate Sentiment Index
Typical Down Payment NAR
Pop Quiz What is the monthly P&I payment on a $200,000 30-year loan? A.$1,146 B.$966 C.$1,278 D.$1,544
Negotiating Your Purchase
The Mortgage Market Now Low Down Payment programs… • Up to 97% financing for home purchase. • 100% VA/USDA available (0% down) • Non-occupant borrower income. • Rental income from accessory units (1-unit property) • Boarder income documentation flexibility.
• Provide you the highest level of Customer Service in the industry. • Make sure you understand your financing options so you make educated decisions. • Ensure your purchase closes on time. My Job…
I look forward to meeting with you Carlos A. Machado Gold Services Manager Princeton Office NMLS #4384 Weichert Financial Services 908-307-8317 cmachado@weichertfinancial.com
Weichert Family of Companies What will a real estate company do for me?
Source: 2012 NAR Profile of Home Buyers and Sellers This is where you win or lose the sale
MakingMaking Your Purchase asPurchase as Smooth as PossibleSmooth 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.
Thank you for your time today
Resource and Website ListResource and Website List www.trendmls.com www.realtor.org www.njar.com www.Otteau.com www.Pre-listing-inspection.com www.Housemaster.com www.Stagingshoppingcenter.com www.realtytrac.com www.njar.com/10k www.keepingcurrentmatters.com https://education.state.nj.us/pr/

Princeton Real Estate Market Presentation March 2017

Check these out next

Princeton Real Estate Market Presentation March 2017

Recommended

More Related Content

Slideshows for you(19)

Similar to Princeton Real Estate Market Presentation March 2017(20)

More from Weichert Realtors(17)

Recently uploaded(20)

Princeton Real Estate Market Presentation March 2017

Editor's Notes