Greater Princeton NJ Real Estate Market Update
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Transcript of Greater Princeton NJ Real Estate Market Update
![Page 1: Greater Princeton NJ Real Estate Market Update](https://reader033.fdocuments.us/reader033/viewer/2022061111/54555101af795974408b8632/html5/thumbnails/1.jpg)
The National Association of Realtors reports
total existing-home sales for 2013
were the strongest
in seven years.
Market Confidence Meter
![Page 2: Greater Princeton NJ Real Estate Market Update](https://reader033.fdocuments.us/reader033/viewer/2022061111/54555101af795974408b8632/html5/thumbnails/2.jpg)
Today’s jobs report reveals the unemployment
rate down to 6.6%
More people working, plus higher home prices,
means fewer foreclosures, a continued housing
recovery and economic strengthening.
Market Confidence Meter
![Page 3: Greater Princeton NJ Real Estate Market Update](https://reader033.fdocuments.us/reader033/viewer/2022061111/54555101af795974408b8632/html5/thumbnails/3.jpg)
Nearly every city in the U.S. is expected to see
economic growth in 2014, according to the U.S.
Conference of Mayors.
Case-Shiller forecasts a 6.8% rise in the median home value for 2014.
Market Confidence Meter
![Page 4: Greater Princeton NJ Real Estate Market Update](https://reader033.fdocuments.us/reader033/viewer/2022061111/54555101af795974408b8632/html5/thumbnails/4.jpg)
In New Jersey, 2013 home sales contracts rose to the highest level since 2006.
Average home prices in the
state rose 4-5% in 2013.
Housing inventory remains at its lowest level since 2005.
Market Confidence Meter
![Page 5: Greater Princeton NJ Real Estate Market Update](https://reader033.fdocuments.us/reader033/viewer/2022061111/54555101af795974408b8632/html5/thumbnails/5.jpg)
The average rate on a 30-year,
fixed-rate mortgage hovers near
4.375%.
Buyers take note: rates are projected to climb
above 5% in 2014.
Market Confidence Meter
![Page 6: Greater Princeton NJ Real Estate Market Update](https://reader033.fdocuments.us/reader033/viewer/2022061111/54555101af795974408b8632/html5/thumbnails/6.jpg)
Historic Home PricesRemember, 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)
![Page 7: Greater Princeton NJ Real Estate Market Update](https://reader033.fdocuments.us/reader033/viewer/2022061111/54555101af795974408b8632/html5/thumbnails/7.jpg)
If you are a Buyer,
• with today’s low interest rates, hovering around 3.75% for 30-year fixed-rate mortgages, AFFORDABILITY is HIGH !
• consult with an experienced New Jersey mortgage counselor to assess your buying power and position yourself in the market.
If you are a Seller,
• Pinpoint pricing is all important in this challenging market.
• Professional staging can make all the difference in getting a good, negotiable offer.
• Pre-inspections prevent later fall-throughs once you have a contract for sale!
• Marketing for today’s buyers and the way they search for homes–on the INTERNET, makes all the difference.
With an eye to Moving This Year!
![Page 8: Greater Princeton NJ Real Estate Market Update](https://reader033.fdocuments.us/reader033/viewer/2022061111/54555101af795974408b8632/html5/thumbnails/8.jpg)
Top Five Rules for Understanding the Real
Estate Market:1. Real Estate is Local2. Real Estate is Local3. Real Estate is Local
4. Real Estate is Local.5. Real Estate is Local
![Page 9: Greater Princeton NJ Real Estate Market Update](https://reader033.fdocuments.us/reader033/viewer/2022061111/54555101af795974408b8632/html5/thumbnails/9.jpg)
Understand the Local Market That
You are Buying into or Selling out of!
![Page 10: Greater Princeton NJ Real Estate Market Update](https://reader033.fdocuments.us/reader033/viewer/2022061111/54555101af795974408b8632/html5/thumbnails/10.jpg)
How do we assess strength and vitality in our real estate markets?
By checking the “Absorption Rate.” This is 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.
![Page 11: Greater Princeton NJ Real Estate Market Update](https://reader033.fdocuments.us/reader033/viewer/2022061111/54555101af795974408b8632/html5/thumbnails/11.jpg)
Sample Market Absorption RateSample Market Absorption Rate
100 current active listings
4 reported sales in last 30 days=
25Months’
absorptionrate
Anytown., NJ
5-6 Months Market Absorption Rate indicates a normal market.
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12
Market Absorption ScaleMarket Absorption Scale(Absorption Rate in Months)(Absorption Rate in Months)
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Ma
rke
t A
bso
rpti
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in M
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ths
1
2
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No
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Market Scale for Supply & DemandMarket Scale for Supply & DemandWeichert, 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.
![Page 14: Greater Princeton NJ Real Estate Market Update](https://reader033.fdocuments.us/reader033/viewer/2022061111/54555101af795974408b8632/html5/thumbnails/14.jpg)
1/27/14
TownsActive 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 46 12 3.83 14 2 5 10.9 7 5 13West Windsor Condo/ T.Houses
7 3 2.33 5 2 0 0 0 2 4
West Windsor55+ 0 0 0 0 0 -- -- 0 1 3
West Windsor Single Family 39 9 4.33 9 0 5 12.8 7 2 6
Lawrence: All Styles 118 11 10.73 18 7 19 16.1 9 10 6Lawrence:Condo/THouses
27 3 9 8 5 8 29.6 4 2 2
Lawrence: 55+ 7 0 999 1 1 -- -- 0 2 0
Lawrence: Single Family 84 8 10.5 9 1 11 13.1 5 6 4
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1/27/14
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
33 3 11 10 7 1 3% 7 0 3
PlainsboroCondo/ THouses
11 2 5.5 2 0 0 0 4 0 0
Plainsboro55+
7 1 7 3 2 0 0 0 0 0
PlainsboroSingle Family
15 0 15 5 5 1 6% 3 0 3
Cranbury:All Styles
14 1 14 5 4 4 28% 1 0 0
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1/27/14Towns Active
ListingsPending 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
180 13 14 32 19 34 19% 23 6 10
Ewing : Condo/ T.Houses
26 6 4 8 2 3 12% 4 0 2
Ewing 55+:
1 0 999 0 0 --- --- 0 0 2
Ewing:Single Family
153 7 22 24 17 31 20% 19 6 6
East Windsor:All Styles
99 18 6 25 7 7 14% 12 3 16
East Windsor:Condo/ Thouses
48 12 4 13 1 4 8% 7 3 9
East Windsor:55+
8 1 8 0 -1 --- --- 0 0 0
East Windsor: Single Family
43 5 9 12 7 3 7% 5 0 7
![Page 17: Greater Princeton NJ Real Estate Market Update](https://reader033.fdocuments.us/reader033/viewer/2022061111/54555101af795974408b8632/html5/thumbnails/17.jpg)
1/27/14
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
118 8 14.75 13 5 15 12.7% 5 2 4
Hopewell Twp. Condo/ T.Houses
9 1 9.00 3 2 1 11.1% 0 0 1
Hopewell Twp.:55+
1 1 1.0 0 (1) 0 0 0 0 0
Hopewell Twp Single Family 108 6 18.00 10 4 14 12.9% 5 2 3
Hamilton: All Styles 393 32 12.28 68 36 67 17.1% 36 13 35
Hamilton:Condo/ THouses 81 7 11.57 16 9 13 16.1% 11 4 2
Hamilton:55+ 8 0 0 1 1 0 0 0 0 1
Hamilton: Single Family 304 25 12.16 51 26 54 17.8% 25 9 32
![Page 18: Greater Princeton NJ Real Estate Market Update](https://reader033.fdocuments.us/reader033/viewer/2022061111/54555101af795974408b8632/html5/thumbnails/18.jpg)
1/27/14
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
RobbinsvilleAll Styles 60 9 7 18 9 9 15% 4 3 12
RobbinsvilleCondo/ T.Houses
26 3 1 9 6 3 12% 3 3 7
Single Family 34 6 6 9 3 6 18% 1 0 5
Hightstown Boro: All Styles
27 5 5 3 (2) 2 7% 2 3 8
Pennington 19 0 999 5 5 1 5% 2 2 2
Hopewell Boro 9 3 3 1 (2) 2 22% 1 2 1
![Page 19: Greater Princeton NJ Real Estate Market Update](https://reader033.fdocuments.us/reader033/viewer/2022061111/54555101af795974408b8632/html5/thumbnails/19.jpg)
1/27/14
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: All Styles 89 7 12.7 14 7 7 7.9% 2 6 14
Princeton:Condo/ Thouses
27 5 5.4 8 3 3 11.1% 0 0 2
Princeton:Single Family
62 2 31 6 4 4 6.5% 2 6 12
![Page 20: Greater Princeton NJ Real Estate Market Update](https://reader033.fdocuments.us/reader033/viewer/2022061111/54555101af795974408b8632/html5/thumbnails/20.jpg)
2006 - 2008 Core Market Comparison: Week of 1/20/14
Town’12
Inven.
Count
‘12
Pending
Sales
‘12 Absorp.
Rate
‘13
Inven.
Count
‘13 Pending
Sales
‘13 Absorp.
Rate
‘14
Inven.
Count
‘14
Pending Sales
‘14
Absorp.
Rate
Inventory compared
to 2012
Inventory compared to
2013
West Windsor 88 9 9.8 55 6 9.2 45 8 5.63 (48%) (18%)
Plainsboro 61 10 6.1 77 7 11 35 5 5 (42%) (54%)
Lawrence 161 6 26.8 120 6 20 119 7 17 (26%) (0.8%)
East Windsor 184 8 23 143 9 16 99 16 6 (46%) (30%)
Hamilton 534 22 24.3 388 27 14.4 378 23 16.43 (29%) (30%)
Hopewell Twp 122 7 17.4 103 5 20.6 115 7 16.43 (5%) +11%
Robbinsville 106 15 7 61 10 6 51 8 6 (51%) (16%)
Princeton 135 4 33.7 106 7 15.1 87 7 124 (35%) (17%)
South Brunswick 208 10 21 154 6 25 128 5 25 (38%) (16%)