The Real Estate Market recovery will be a bottom up trend. This means that the entire real estate market's health is determined by the first time home buyer. As the first time home buyer enters the market it will help the lowest priced homes recover first. The top tier homes in any towns will take the longest to come back. This report shows the Absorption Rate, Inventory and Contracts in Princeton and surrounding towns. The picture is clear and the recovery is occuring from the bottom up.

1. 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.

2. Market Absorption Scale
(Absorption Rate in Months)
5-6 months absorption rate indicates a normal market.

3. Sample Market Absorption Rate
Anytown., NJ
107 current active listings 24.3
= months
4 reported sales in last 30 days
absorption
rate
5-6 Months Market Absorption Rate indicates a normal market.

4. Market Scale for Supply & Demand
High Supply/Low Demand Normal Low Supply/High Demand
Weichert has been
1
studying market
Market Absorption in Months
2
conditions for more than 3
3
decades and has found a
4
l
direct correlation between
Norma
5 market absorption and
6
property values.
7
As absorption rates
8
increase beyond a normal
9
market level of 5-6
10
months, property values

5. Princeton Borough Absorption Rate By Price
Towns Active Listings Pending in Last Absorption Rate in
30 Days Months
8 1 8
0-$500
$500-750k 8 3 2.6
$750-999 7 2 3.5
$999-$1.5 11 0 99
million
$1.5 million + 13 1 13

6. Princeton Township Absorption Rate By Price
Towns Active Listings Pending in Last Absorption Rate in
30 Days Months
12 1 12
0-$500
$500-999k 54 4 13.5
$999-1.5 29 1 29
$1.5-2.5 34 1 34
$2.5 + 21 1 21

7. West Windsor Absorption Rate By Price
Towns Active Listings Pending in Last Absorption Rate in
30 Days Months
46 12 3.83
0-$500
$500-750k 36 11 3.27
$750-999 20 3 6.6
$999 + 6 0 99

8. Lawrence Absorption Rate By Price
Towns Active Listings Pending in Last Absorption Rate in
30 Days Months
134 16 8.3
0-$400
$400-650 44 7 6.2
$650-999 11 1 11
$999 + 8 0 99

9. Ewing Absorption Rate By Price
Towns Active Listings Pending in Last Absorption Rate in
30 Days Months
30 3 10
0-$150
$150-250 126 12 10.5
$250-450 80 4 20
450+ 9 0 99

10. Hopewell Absorption Rate By Price
Towns Active Listings Pending in Last Absorption Rate in
30 Days Months
63 4 15.7
0-$400
$400-$650 46 1 46
$650-999 39 1 39
$999+ 33 0 99