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Slideshare pres 7 21 15
The document provides market activity data for various towns and cities in New Jersey, including active listings, listings under contract, absorption rates (months of inventory), new listings, price reductions, expired/withdrawn listings, and closed sales for the period. Absorption rates ranged from under 1 month to over 18 months depending on the location. Several areas saw gains in active listings while others saw declines. Price reductions occurred in many markets. Overall the data suggests some markets remain tighter than others.
Slideshare pres 7 21 15
- 1. Market Confidence MeterMarketConfidence Meter Nationwide, May pending home sales reached their highest level in Nine Years! National Association of Realtors’ chief economist Lawrence Yun attributed this to the steady pace of solid job creation for over a year.
- 2. Market Confidence MeterMarketConfidence Meter The national median sales price of an existing home is 7.9% higher than a year ago. Sales increased in all areas of the country.
- 3. Market Confidence MeterMarketConfidence Meter The majority of Americans believe real estate is the best long-term investment, over gold, stocks, savings accounts and bonds, according to a recent Gallup poll. Fannie May’s May 2015 Housing Survey shows 66% of Americans prefer to buy their next house rather than rent.
- 4. Market Confidence MeterMarketConfidence Meter That same Fannie Mae Housing Survey reported 49% of people surveyed said it is a good time to sell a home! Even better news: 28% of consumers saw their household income grow substantially in the past year!
- 5. Market Confidence MeterMarketConfidence Meter In New Jersey, May home sale contracts rose to nearly the highest level since March 2006! 76% of NJ counties have less than 8 months of housing supply, which is a balance point for home prices, according to the Otteau Group.
- 6. Market Confidence MeterMarketConfidence Meter The Mortgage Bankers Association reports that mortgage application volume is up 22% over mid-July last year. This is consistent with a buying market positively affected by employment growth.
- 7. Historic Home Prices Remember, whenadjusted for inflation, American home prices increased by an average of about half a percentage point per year from 1890 through 2008, according to data compiled by Yale University Professor Robert Shiller. (www.USNews.com/money - Luke Mullins, March 4, 2010)
- 8. If you area Buyer, • with today’s low interest rates, still hovering around 4% for 30-year fixed-rate mortgages, AFFORDABILITY is HIGH, but will fall as prices and mortgage rates rise! • consult with an experienced New Jersey mortgage counselor to assess your buying power and position yourself in the market. If you are a Seller, • Accurate pricing is all important. • Professional staging makes the difference in getting a good, negotiable offer. • Pre-inspection, with problems resolved before listing, prevents unwelcome surprises when your buyer has a home inspection. With an eye to Moving This Year!
- 9. Top Five Rulesfor Understanding the Real Estate Market: 1. Real Estate is Local 2. Real Estate is Local 3. Real Estate is Local 4. Real Estate is Local 5. Real Estate is Local
- 10. Real Estate isLOCAL! Understand the Local Market That you are Buying into or Selling out of!
- 11. How do weassess strength and vitality in our real estate markets? By checking the “Absorption Rate,” the number of homes available divided by the number of homes that have gone under contract in the past 30 days. It is our most accurate measure of current market strength.
- 12. Sample Market AbsorptionRateSample Market Absorption Rate 100 current active listings 4 reported sales in last 30 days = 25 Months’ absorption rate Anytow n., NJ 5-6 Months Market Absorption Rate indicates a normal market.
- 13. 13 Market Absorption ScaleMarketAbsorption Scale (Absorption Rate in Months)(Absorption Rate in Months)
- 14. MarketAbsorptioninMonths 1 2 3 4 5 6 7 8 9 10 11 12 Normal Market Scale forSupply & DemandMarket Scale for Supply & Demand Weichert, Realtors has been studying market conditions for more than 3 decades and has found a direct correlation between market absorption rates and property values. As absorption rates increase beyond a normal market level of 5-6 months, property values depreciate annually. As they decrease below 5 months, they increase—inverse proportion. Although different markets may not see the amount of decrease shown here, the pressure on prices will be similar.
- 15. West Windsor MarketActivity 7/21/15 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 Expired Listings in 30 Days W/drawn Listings in 30 days Closed Sales in 30 days All Styles 122 28 4.36 38 10 34 28% 2 5 46 Single Family 100 20 5 29 9 30 30% 2 4 34 Condo/ Townhouse 19 4 4.75 7 3 4 21% 0 1 10 Adult Community 3 4 0.75 2 -2 -- -- 0 0 2
- 16. Princeton Market Activity 7/21/15 Style Active Listings Under Contractin 30 Days Absorption Rate New Listings in 30 Days Net Inventory Gain/Loss Price Reductions in 30 Days % of Invent. Reduced Expired Listings in 30 Days W/drawn Listings in 30 days Closed Sales in 30 days All Styles 158 11 14 29 +18 32 22% 4 8 48 Single Family 131 9 14 22 +13 28 21% 3 5 41 Condo/ Townhouse 27 2 13 7 +5 4 15% 1 3 7
- 17. Plainsboro Market Activity 7/21/15 Style Active Listings Under Contractin 30 Days Absorption Rate New Listings in 30 Days Net Inventory Gain/Loss Price Reductions in 30 Days % of Invent. Reduced Expired Listings in 30 Days W/drawn Listings in 30 days Closed Sales in 30 days All Styles 99 12 8.25 31 19 22 22% 3 0 12 Single Family 29 8 3.6 10 2 11 38% 0 0 0 Condo/ Townhouse 61 3 20.33 18 15 10 16% 3 0 12 Adult Community 9 1 9 3 6 1 11% 0 0 0
- 18. East Windsor MarketActivity 7/21/15 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 Expired Listings in 30 Days W/drawn Listings in 30 days Closed Sales in 30 days All Styles 162 18 9 30 12 35 22% 1 2 34 Single Family 67 7 10 15 8 17 25% 0 1 12 Condo/ Townhouse 83 11 8 13 2 18 22% 1 1 17 Adult Community 12 0 999 2 2 ---- ---- 0 0 5
- 19. Lawrenceville Market Activity 7/21/15 Style Active Listings Under Contractin 30 Days Absorption Rate New Listings in 30 Days Net Inventory Gain/Loss Price Reductions in 30 Days % of Invent. Reduced Expired Listings in 30 Days W/drawn Listings in 30 days Closed Sales in 30 days All Styles 203 17 12 45 28 45 22% 9 6 38 Single Family 126 6 21 23 17 26 21% 7 4 21 Condo/ Townhouse 67 11 6 21 10 19 28% 2 2 12 Adult Community 10 0 999 1 1 -- -- 0 0 5
- 20. Hopewell Twp MarketActivity 7/21/15 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 Expired Listings in 30 Days W/drawn Listings in 30 days Closed Sales in 30 days All Styles 191 12 15.9 30 18 52 27.2% 8 6 52 Single Family 169 10 16.9 22 12 48 28.4% 6 5 36 Condo/ Townhouse 21 0 999 8 8 4 19.0% 2 1 14 Adult Community 1 2 0.5 0 (2) 0 0.0% 0 0 2
- 21. Robbinsville Market Activity 7/21/15 Style Active Listings Under Contractin 30 Days Absorption Rate New Listings in 30 Days Net Inventory Gain/Loss Price Reductions in 30 Days % of Invent. Reduced Expired Listings in 30 Days W/drawn Listings in 30 days Closed Sales in 30 days All Styles 125 15 8.3 21 6 30 24% 4 4 29 Single Family 50 5 10 13 8 16 32% 2 2 9 Condo/ Townhouse 75 10 7.5 8 -2 14 18.7% 2 2 20
- 22. Hamilton Market Activity 7/21/15 Style Active Listings Under Contractin 30 Days Absorption Rate New Listings in 30 Days Net Inventory Gain/Loss Price Reductions in 30 Days % of Invent. Reduced Expired Listings in 30 Days W/drawn Listings in 30 days Closed Sales in 30 days All Styles 539 69 7.8 117 48 159 29.5% 27 14 75 Single Family 439 58 7.6 96 38 136 31.0% 19 11 56 Condo/ Townhouse 86 10 8.6 19 9 23 26.7% 7 2 14 Adult Community 14 1 14.0 2 1 0 0.0% 1 1 5
- 23. Ewing Market Activity 7/21/15 Style Active Listings Under Contractin 30 Days Absorption Rate New Listings in 30 Days Net Inventory Gain/Loss Price Reductions in 30 Days % of Invent. Reduced Expired Listings in 30 Days W/drawn Listings in 30 days Closed Sales in 30 days All Styles 229 26 9 49 23 47 21% 10 9 26 Single Family 186 19 10 36 17 40 22% 9 7 25 Condo/ Townhouse 43 7 6 13 6 7 16% 1 2 1 Adult Community 0 0 N.A. 0 0 ---- ---- 0 0 0
- 24. Montgomery Market Activity 7/21/15 Style Active Listings Under Contractin 30 Days Absorption Rate New Listings in 30 Days Net Inventory Gain/Loss Price Reductions in 30 Days % of Invent. Reduced Expired Listings in 30 Days W/drawn Listings in 30 days Closed Sales in 30 days All Styles 150 40 3.75 61 +21 34 23% 6 4 41 Single Family 133 27 4.9 47 +20 31 23% 4 4 30 Condo/ Townhouse 17 13 1.3 14 +1 3 18% 2 0 11
- 25. Hillsborough Market Activity 7/21/15 Style Active Listings Under Contractin 30 Days Absorption Rate New Listings in 30 Days Net Inventory Gain/Loss Price Reductions in 30 Days % of Invent. Reduced Expired Listings in 30 Days W/drawn Listings in 30 days Closed Sales in 30 days All Styles 201 66 3.0 49 -17 47 23% 3 6 60 Single Family 131 35 3.7 31 -4 26 20% 1 4 34 Condo/ Townhouse 70 31 2.2 18 -13 21 30% 2 2 26
- 26. Hopewell Boro MarketActivity 7/21/15 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 Expired Listings in 30 Days W/drawn Listings in 30 days Closed Sales in 30 days All Styles 6 1 6 3 2 1 17% 0 1 3
- 27. Hightstown Market Activity 7/21/15 Style Active Listings Under Contractin 30 Days Absorption Rate New Listings in 30 Days Net Inventory Gain/Loss Price Reductions in 30 Days % of Invent. Reduced Expired Listings in 30 Days W/drawn Listings in 30 days Closed Sales in 30 days All Styles 46 2 23 11 9 13 28.3% 1 1 7
- 28. Cranbury Market Activity 7/21/15 Style Active Listings Under Contractin 30 Days Absorption Rate New Listings in 30 Days Net Inventory Gain/Loss Price Reductions in 30 Days % of Invent. Reduced Expired Listings in 30 Days W/drawn Listings in 30 days Closed Sales in 30 days All Styles 37 2 18.5 8 6 1 2% 0 0 3
- 29. Pennington Boro MarketActivity 7/21/15 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 Expired Listings in 30 Days W/drawn Listings in 30 days Closed Sales in 30 days All Styles 28 2 14 3 1 10 35.7% 0 1 6
Editor's Notes
- #16 Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
- #17 Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
- #18 Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
- #19 Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
- #20 Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
- #21 Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
- #22 Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
- #23 Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
- #24 Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
- #25 Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
- #26 Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
- #27 Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
- #28 Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
- #29 Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.
- #30 Populate this table to show the local absorption rate in the various price ranges that are appropriate for your market area. Please add or delete rows as necessary to adequately reflect local conditions.