Greater Princeton Area Real Estate Trends March 14 2013

The National Association of Realtors reports

that

prices for single-family homes rose in 88%

of U.S. cities

in the fourth quarter of 2012.

Market Confidence Meter

Nationally, we have recovered about 66% of

the jobs lost in the 63-month recession.

More people working = fewer foreclosures, a

better housing recovery and a better economy.


NJ Housing Affordability is at 133%.

This means you can buy a third more house for the same monthly payment,

a $400,000 house for the same monthly

payment as a $300,000 house!


The Federal Reserve will continue boosting

housing market recovery by keeping

downward pressure on interest rates, now at or nearhistoric lows.


In New Jersey, January was the 16th

consecutive month of increased sales. Housing

inventory is down to its lowest levels since 2005, the last year

of the housing bubble. With sales up and supply

down, everything points to a strong, breakout NJ

real estate market this Spring!


The average rate on a 30-year, fixed-rate mortgage is

still below 4%.

At these rates, and with rising rents,

Homeownership is now cheaper than Renting

in all 100 of the largest U.S. metros by a wide margin,

reported Trulia!


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)

The Federal Reserve Bank of Philadelphia

forecasts the New Jersey economy

growing at more than 4.5% over the next six

months.


If you are a Buyer,

• with today’s low interest rates, hovering around 3.4% 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!

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

Understand the Local Market That

You are Buying into or Selling out of!

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.

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.

14

Market Absorption ScaleMarket Absorption Scale(Absorption Rate in Months)(Absorption Rate in Months)

Ma

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t A

bso

rpti

on

in M

on

ths

1

2

3

4

5

6

7

8

9

10

11

12

No

rma

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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.

3/4/13Towns 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

West Windsor: All Styles

64 24 2.7 22 (2) 12 18.8% 1 2 16

West Windsor Condo/ T.Houses

9 9 1.0 5 (4) 1 11.1% 1 1 4

West Windsor55+

8 2 4.0 2 0 _ _ 0 0 3

West Windsor Single Family

47 13 3.6 15 2 11 23.4% 0 1 9

Lawrence: All Styles 144 12 12.0 48 36 18 12.5% 10 1 20

Lawrence:Condo/THouses

41 5 8.2 17 12 7 17.1% 5 0 8

Lawrence: 55+ 9 0 99 1 1 _ _ 1 1 4Lawrence: Single Family

94 7 13.4 30 23 11 11.7% 4 0 8

3/4/13

Towns Active Listings

Pending in Last 30 Days






Expired Listings

W/drawn Listings

Closed Listings

PlainsboroAll Styles

65 17 3.8 25 8 7 11% 6 0 15

PlainsboroCondo/ THouses

28 7 4 8 1 4 14% 4 0 8

Plainsboro55+

12 5 2.4 3 (2) 1 8% 1 0 3

PlainsboroSingle Family

25 5 5 14 9 2 8% 1 0 4

Cranbury:All Styles

14 2 7 6 4 1 7% 2 0 0

3/4/13Towns Active







Expired Listings

W/drawn Listings

Closed Listings

Ewing: All Styles

206 20 10 47 27 37 18% 10 4 14

Ewing : Condo/ T.Houses

29 5 6 11 6 5 17% 1 1 4

Ewing 55+:

6 2 3 0 2 --- --- 2 0 1

Ewing:Single Family

171 13 13 36 23 32 19% 7 3 9

East Windsor:All Styles

141 22 6 38 16 19 13% 7 3 10

East Windsor:Condo/ Thouses

71 15 5 13 -2 12 17% 7 3 3

East Windsor:55+

8 0 999 1 1 --- --- 0 0 1

East Windsor: Single Family

62 7 9 24 17 7 11% 0 0 6

3/4/13Towns Active







Expired Listings

W/drawn Listings

Closed Listings

Hopewell Twp.All Styles

137 14 9.8 46 32 16 11.7% 1 4 6

Hopewell Twp. Condo/ T.Houses

6 4 1.5 5 1 1 16.7% 0 1 0

Hopewell Twp.:55+

2 0 99 1 1 -- -- 0 0 0

Hopewell Twp Single Family 129 10 12.9 40 30 15 11.6% 1 3 6

Hamilton: All Styles 406 46 8.8 113 67 64 15.8% 17 13 50

Hamilton:Condo/ THouses 76 9 8.4 17 8 9 11.8% 4 3 14

Hamilton:55+ 26 3 8.7 6 3 -- -- 0 0 3

Hamilton: Single Family 304 34 8.9 90 56 55 18.1% 13 10 33

3/4/13Towns Active







Expired Listings

W/drawn Listings

Closed Listings

RobbinsvilleAll Styles 76 17 4 27 10 15 20% 8 2 4

RobbinsvilleCondo/ T.Houses

31 10 3 10 0 7 23% 3 1 4

Single Family 45 7 6 17 10 8 18% 5 1 0

Hightstown Boro: All Styles

53 4 13 7 3 16 30% 2 3 1

Pennington 20 0 999 7 7 3 15% 3 1 0

Hopewell Boro 8 1 8 3 2 2 25% 0 0 3

3/4/13

Towns Active Listings

Pending in Last 30 Days






Expired Listings

W/drawn Listings

Closed Listings

Princeton: All Styles 120 14 8.6 33 19 16 13.3% 3 2 6

Princeton:Condo/ Thouses 27 3 9 4 1 3 11.1% 1 1 3

Princeton:Single Family 93 11 8.5 29 18 13 14% 2 1 3

3/4/13Towns Active







Expired Listings

W/drawn Listings

Closed Listings

South

Brunswick

All Styles

159 17 9 41 24 12 8 21 3 20

South BrunswickCondo/ T.Houses

55 9 6 18 9 1 2 4 1 9

South Brunswick

55+

31 1 31 4 3 1 3 3 1 1

South Brunswick

Single Family

73 7 10 19 12 10 14 14 1 10

Monroe:

All Styles 428 33 13 110 67 34 8 2 1 3

Monroe:

55+ 271 28 10 73 45 19 7 1 1 2

Monroe:

Single Family 157 5 30 37 32 15 10 1 0 1

3/4/13Towns Active







Expired Listings

W/drawn Listings

Closed Listings

Montgomery

All Styles 99 17 5.8 31 +14 12 12% 6 0 16

Montgomery

Condo/Twnhms 15 6 2.5 6 0 1 6% 0 1 1

Single Family 84 11 7.6 25 +14 11 13% 6 0 15

Hillsborough

All Styles 174 46 3.8 52 +6 24 14% 7 4 27

Hillsborough

Condo/Twnhms 61 19 3.2 16 -3 13 21% 2 1 12

Hillsborough

Single Family 113 27 4.2 36 +9 11 10% 5 3 15

Greater Princeton Area Real Estate Trends March 14 2013

Real Estate

Transcript of Greater Princeton Area Real Estate Trends March 14 2013