6.30.09

• Weichert, Princeton Market Update

• Prepared exclusively for the Weichert Princeton Associates

every week.• Town by town data available at

www.slideshare.net

• Understanding the Market Change• What is happening in the market • Comparison of 2007 v 2009: Market

Activity• Current Market Data• Price Trend Analysis• A Plan to Move Forward

AgendaAgenda

123 Any street, Princeton, NJ

Listings from the MLS in Weichert Market AreasListings from the MLS in Weichert Market Areas

In our local area (CT/NY/NJ. Lehigh Valley, PA), the number of homes for sale (Weichert and non-Weichert listings) has steadily increased over the past four years.

Increase % 2008 from 2007NY/CT (Ashby) +.09%

Passaic/Hudson/Bergen NJ (Bixon) -2.54%Western Central NJ/Lehigh Valley PA (McDonald) -3.12%

Northern and Central NJ (Prevete) -1.10%Eastern Central/Shore Points NJ (Waters) -3.85%

Southern NJ (Williams) +.78%

2007 thru 2009 Market Activity Comparison: Week of 6/24/09

07

Inven.

Count

07

Pending

Sales

(prev. 30 days)

07

Absorp.

Rate

(months)

07

Active w/

Contr.

(prev.

30 days)

08

Inven.

Count

08

Pending Sales

(prev. 30 days)

08

Absorp. Rate

(months)

08

Active w/ Contr.

(prev.

30 days)

09

Inven.

Count

09

Pending Sales

(prev. 30 days)

09

Absorp.

Rate

(months)

09

Active w/ Contr.

(prev. 30 days)

Pton. Boro 70 3 23.2 - 48 5 9.6 - 48 11 4.3 -Pton Twp 137 15 9.1 - 117 15 7.8 - 151 21 7.19 -

W. Windsor 167 26 6.4 - 144 32 4.5 - 123 45 2.7 -

Lawrence 230 36 6.3 - 207 22 9.4 - 182 38 4.7 -East

Windsor 229 23 9.9 - 216 16 13.5 - 202 31 6.5 -

Ewing 280 26 10.7 - 249 21 11.8 - 230 31 7.4 -Hamilton 561 57 9.8 - 629 48 13.1 - 591 112 5 -Hopewell

Twp. 208 21 9.9 - 161 19 8.4 - 174 21 8 -Cranbury 40 1 40 - 33 3 11 - 91 16 5.6 -Plainsboro 132 15 8.8 - 117 25 4.687 - 91 16 5.6 -

South Brunswick 250 27 9.2 - 209 19 11 - 227 88 3 -Montgom. 178 31 5.7 - 156 25 6.2 - 160 35 4.5 -

Cum. 2482 281 8.8 - 2286 250 9.1 - 2203 451 4.88 -

2007 - 2009 Core Market Comparison: Week of 2/23067

Inven.

Count

07

Pending

Sales

(prev. 30 days)

07

Absorp.

Rate

07 Active

w/

Contr.

(prev.

30 days)

08

Inven.

Count

08

Pending Sales

(prev. 30 days)

08

Absorp.Rate

(months)

08

Active w/ Contr.

(prev.

30 days)

09

Inven.

Count

09

Pending Sales

(prev. 30 days)

09

Absorp.

Rate

(months)

09

Active w/ Contr.

(prev. 30 days)

Pton Boro

Pton.

Twp.

W. Windsor

Plainsboro

Montgom

Lawrence

Hopewell

Twp.

Cum.

6/30/09Towns 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

Princeton Boro:

All Styles 48 11 4.3 7 (4) 8 16% 5 1 10

Pton -Boro Condo/ Thouses 12 2 6 3 1 2 16% 1 1 1

Pton-Boro

Single Family 36 9 4 4 (5) 6 16% 4 0 9

Pton Twp: All Styles 151 21 7.19 36 15 25 17% 5 9 14

Pton Twp: Condo/ Thouses 23 3 7.6 4 1 4 17% 0 1 5

Pton Twp:

Single Family 128 18 7.1 32 14 21 16% 5 8 9

Town by Town Analysis 6/30/09Towns Active







Expired Listings

W/drawn Listings

Closed Listings

West Windsor:

All Styles

123 45 2.7 30 (15) 47 38 6 5 36

West Windsor Condo/ T.Houses

23 15 1.5 9 (6) 11 47 0 2 12

West Windsor

55+

6 0 99 - - - - - -

West Windsor

Single Family

94 30 3.1 21 (9) 36 38 6 3 24

Lawrence: All Styles

182 38 4.7 38 0 59 32 17 2 20

Lawrence:

Condo/

THouses

85 17 5 24 7 24 28 6 2 14

Lawrence:

55+12 0 99 - - - - - - -

Lawrence:

Single Family

85 21 4 14 (7) 35 41 11 0 6








Expired Listings

W/drawn Listings

Closed Listings

Ewing:

All Styles230 31 7.4 61 30 60 26 22 5 23

Ewing : Condo/ T.Houses

44 9 4.8 9 0 15 34 2 2 5

Ewing:

55+1 0 99 0 0 0 0 0 0 0

Ewing:

Single Family

185 22 8.4 52 30 45 24 20 3 18

East Windsor:

All Styles

202 31 6.5 50 19 49 24 19 5 30

East Windsor:

Condo/ THouses

104 17 6.1 34 17 21 20 8 3 18

East Windsor:

55+

19 0 99 0 0 0 0 0 0 0

East Windsor: Single Family

81 14 5.7 16 2 28 34 11 2 12








Expired Listings

W/drawn Listings

Closed Listings

Hopewell Twp.

All Styles 174 21 8 28 7 49 28% 15 5 12

Hopewell Twp. Condo/ T.Houses 24 7 3 10 3 7 29% 2 2 2

Hopewell Twp.:

55+ 4 0 99 - - - - - - -

Hopewell Twp:

Single Family 146 14 10 18 4 42 29% 13 3 10

Hamilton: All Styles 591 112 5 136 24 153 26% 31 25 55

Hamilton:

Condo/ THouses 101 28 4 34 6 35 35% 11 5 10

Hamilton:

Single Family 449 79 6 102 23 118 26% 20 20 45

Hamilton: 55+41 5 8 - - - - - - -

-




=





Expired Listings

W/drawn Listings

Closed Listings

Robbinsville

All Styles 119 19 6 29 10 27 23% 10 3 16

Robbinsville

Condo/ T.Houses

57 10 5.7 19 9 16 28% 4 3 8

Robbinsville

55+ - - - - - - - - - -

Single62 9 7 10 1 11 18% 6 0 8

Hightstown Boro: All Styles 55 6 9 14 8 13 24% 2 2 2

Pennington Boro:

All Styles

29 1 29 8 7 6 23% 0 1 1

Hopewell Boro:

All Styles 14 4 3.5 1 (3) 3 21% 0 0 3

Market Activity: Town by Town Analysis 6/30/09Towns Active







Expired Listings

W/drawn Listings

Closed Listings

PlainsboroAll Styles

91 16 5.6 34 18 20 21% 11 0 29

Plainsboro

Condo/ THouses

54 3 18 24 21 13 24% 4 0 17

Plainsboro

55+10 2 5 2 0 4 4% 0 0 0

Plainsboro

Single Family

27 11 2,4 8 (4) 3 11% 7 0 12

Cranbury:

All Styles24 2 12 4 2 3 8% 0 0 1

Cranbury:

55+4 1 4 0 (1) 0 0 0 0 0

Cranbury: Single Family

20 1 20 4 3 3 15% 0 0 1

Market Activity: Town by Town Analysis 6/24/09Towns Active







Expired Listings

W/drawn Listings

Closed Listings

South

Brunswick

All Styles

227 88 3 51 (37) 79 34% 16 16 29

South BrunswickCondo/ T.Houses

71 29 7 19 (20) 15 21% 5 9 12

South Brunswick

55+

34 5 7 3 (2) 2 5% 0 0 0

South Brunswick

Single Family

122 54 2 29 (25) 16 13% 11 7 17

Monroe:

All Styles 509 89 6 96 7 144 28% 27 12 3Monroe:

55+ 345 46 7 45 (1) 113 33% 16 4 2

Monroe:

Single Family 164 43 4 31 8 31 18% 11 8 1

Town by Town Analysis 6/30/09

Towns Active Listings

Pending in Last 30 Days






Expired Listings

W/drawn Listings

Closed Listings

Montgom.160 35 4.5 47 12 38 24% 9 9 22

Hillsboro260 40 6.5 83 43 57 22% 14 10 36

Rocky Hill413 1 13 0 (1) 1 7.6% 0 0 1

Franklin

Princeton Boro. Active YTD Listings v Pending Analysis

0

10

20

30

40

50

60

70

80

Princeton Boro Active Listings

Princeton Boro Pendings

Princeton Boro Price Reductions

Princeton Twp. Active YTD Listings v Pending Analysis

020406080

100120140160180

Twp. Actives

Twp. Pendings

Twp. Reductions

West Windsor Active YTD Listings v Pending Analysis

0

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100

150

200

250

West Windsor Actives

West Windsor Pendings

West Windsor Reductions

Lawrence Active YTD Listings v Pending Analysis

0

50

100

150

200

250

300

Lawrence Actives

Lawrence Pendings

Lawrence Reductions

Cranbury Active YTD Listings v Pending Analysis

05

1015202530354045

Cranbury Actives

Cranbury Pendings

Cranbury Reductions

Plainsboro Active YTD Listings v Pending Analysis

020406080

100120140160180

Plainsboro Actives

Plainsboro Pendings

Plainsboro Reductions

Ewing Active YTD Listings v Pending Analysis

0

50

100

150

200

250

300

350

Ewing Actives

Ewing Pendings

Ewing Reductions

East Windsor Active YTD Listings v Pending Analysis

0

50

100

150

200

250

East Windsor Actives

East Windsor Pendings

East Windsor Reductions

Montgomery Twp. Active YTD Listings v Pending Analysis

0

50

100

150

200

250

Montgomery Actives

Montgomery Pendings

Montgomery Reductions

Hopewell Twp. Active YTD Listings v Pending Analysis

0

50

100

150

200

250

Hopewell Twp. Actives

Hopewell Twp. Pendings

Hopewell Twp. Reductions

Hamilton Active YTD Listings v Pending Analysis

0

100

200

300

400

500

600

700

Hamilton Actives

Hamilton Pendings

Hamilton Reductions

Myth: If I reduce my price, buyers Myth: If I reduce my price, buyers will wait for another reductions.will wait for another reductions.

Reality: There is a direct relationship Reality: There is a direct relationship between price improvements and between price improvements and

contracts.contracts.

Source: trend mls

Relationship of Price Reductions to ‘Pending Sales’

0

10

20

30

40

50

60

70

Princeton Pendings

Princeton Price Reductions

Source: trend mls


0

20

40

60

80

100

120

West Windsor Pendings

West Windsor Reductions

Source: trend mls


0

10

20

30

40

50

60

70

80

90

100

Lawrence Pendings

Lawrence Reductions

Understand the Market You are Understand the Market You are Selling Out of or Buying In to…Selling Out of or Buying In to…

107 current active listings

4 reported sales in last 30 days=

24.3months

absorptionrate

Anytown., NJ

5-6 Months Market Absorption Rate indicates a normal market.

Market Absorption Rate Market Absorption Rate Comparable PropertiesComparable Properties


0 reported ‘pending’ sales in last 30 days=99 month

absorptionrate

Princeton Twp.$4+ bedroom


Market Absorption Rate Market Absorption Rate Comparable PropertiesComparable Properties


0 reported ‘pending’ sales in last 30 days= 99 months absorption

rate


Princeton Twp.$4+ bedroom colonials

Market Absorption Rate Market Absorption Rate Specific CompsSpecific Comps


2 reported ‘pending’ sales in last 30 days=3.5 months absorption

rate


4+ bedroomJefferson, Moore, Walnut, Harris only

Market Absorption Rate Market Absorption Rate Specific CompsSpecific Comps


1 reported ‘pending’ sales in last 30 days=12 months absorption

rate


Lawrence, NJ$450-550

Colonials Only

Market Scale for Supply & Market Scale for Supply & DemandDemand

High Supply/Low Demand Low Supply/High DemandNormal

Ma

rke

t A

bso

rpti

on

in M

on

ths 1

2

3

4

5

6

7

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9

10

11

12

No

rma

l

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.

Let’s look at your competitionLet’s look at your competition

• Properties currently in competition with yours for buyer attention

• Properties that have caught buyer attention in the last 30 days.

• At this rate, how many months will it take for the current buyer demand to absorb the current listing supply in this sector of the market?

Progress in Marketing Your Home Progress in Marketing Your Home

• Broker open house• Public open houses• Agent showings• Internet activity• Agent feedback• Buyer feedback

Bottom line . . .Bottom line . . .Our experience is that an average of 30 showings on a property, usually brings an offer.

Showing ActivityProspective Buyer Showings

05

1015202530354045

1 2 3 4 5 6 7 8

Weeks on Market

ProspectiveBuyerShowings

A Plan for Moving A Plan for Moving ForwardForward• The market is telling us, by the absence of offers,

to generate fresh interest by repositioning your home

• This will bring a whole new group of buyers• Your home will stand out among all other

properties• Competitively priced homes are selling

400000

410000

420000

430000

440000

450000

460000

470000

480000

490000

500000

1 mos 2 mos 3 mos 4 mos 5 mos 6 mos 7 mos

Price to hit the market not chase itPrice to hit the market not chase it

Your Listing

Your Listing

Market

MarketMarket

Current Market PriceCurrent Market Price

Based on the available data and the increasing inventory combined with falling prices, I would recommend a price of $###,### for your home.

Let’s Respond To & Get Ahead of

the Market.

6.30.09

Real Estate

Transcript of 6.30.09