Greater Princeton NJ Real Estate Market Update

1. Market Confidence MeterMarket Confidence 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 MeterMarket Confidence 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 MeterMarket Confidence 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 MeterMarket Confidence 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 MeterMarket Confidence 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 MeterMarket Confidence 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,
when adjusted 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 are a 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 Rules for 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 is LOCAL!
Understand the Local Market
That you are Buying into
or
Selling out of!

11. How do we assess 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 Absorption RateSample 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 ScaleMarket Absorption 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 for Supply & 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 Market Activity
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
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 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
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 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 Market Activity
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
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 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 Market Activity
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
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 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
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 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
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 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
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 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
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 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 Market Activity
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
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 46 2 23 11 9 13 28.3% 1 1 7

28. Cranbury Market Activity
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 37 2 18.5 8 6 1 2% 0 0 3

29. Pennington Boro Market Activity
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