Historic Home Prices
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)
Home Prices Now
Now, however, as a result of many economic factors since
2008, the median American home prices have settled back to 2003
levels.
Source: Case Schiller Non-Seasonally Adjusted Composite
20 U.S. Home Price Index as of March 2010
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/ Selling out of…
How do we assess vitality in our real estate markets?
By checking the Absorption Rate. It is the number of homes available in the market 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.
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Market Scale for Supply & DemandMarket Scale for Supply & Demand
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.
12/6/10Towns 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
43 2 21.5 5 3 2 4.7% 2 3 10
Pton -Boro Condo/ Thouses
16 0 99 1 1 1 6.3% 1 1 7
Pton-BoroSingle Family
27 2 13.5 4 2 1 3.7% 1 2 3
Princeton Twp: All Styles
122 11 11.1 14 3 12 9.8% 3 9 12
Pton Twp: Condo/ Thouses
21 1 21 5 4 2 9.5% 1 0 1
Pton Twp:Single Family
101 10 10.1 9 -1 10 9.9% 2 9 11
12/6/10Towns Active
ListingsPending in Last 30 Days
Absorption Rate in Months
New Listings in 30 Days
Net Gain (Loss) to Market
Li1stings Reduced in 30 Days
% of Invent. Reduced
Expired Listings
W/drawn Listings
Closed Listings
West Windsor: All Styles
97 16 6.1 12 -4 25 25.8% 10 6 17
West Windsor Condo/ T.Houses
24 6 4 3 -3 7 29.2% 1 2 5
West Windsor55+
5 1 5 2 1 -- -- 0 1 1
West Windsor Single Family
68 9 7.6 7 -2 18 26.5% 9 3 11
Lawrence: All Styles
189 11 17.2 30 19 27 14.3% 13 14 20
Lawrence:Condo/THouses
65 3 21.7 10 7 14 21.5% 4 5 4
Lawrence: 55+
14 1 14 3 2 -- -- 0 1 2
Lawrence: Single Family
110 7 15.7 17 10 13 11.8% 9 8 14
12/6/10Towns 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
PlainsboroAll Styles
84 4 21 21 17 15 18% 7 0 9
PlainsboroCondo/ THouses
45 1 45 9 8 8 18% 3 0 4
Plainsboro55+
19 1 19 8 7 2 11% 1 0 1
PlainsboroSingle Family
20 2 10 4 2 5 25% 3 0 4
Cranbury:All Styles
21 0 99 3 3 1 4% 2 0 2
Cranbury:55+
4 0 99 0 0 1 25% 0 0 0
Cranbury: Single Family
17 0 99 3 3 0 0 2 0 2
12/6/10Towns 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
272 9 30.2 38 29 25 9.2% 16 12 22
Ewing : Condo/ T.Houses
36 1 36 6 5 15 41.7% 3 3 2
Ewing 55+:
8 0 99 2 2 -- -- 0 0 0
Ewing:Single Family
228 8 28.5 30 22 10 4.4% 13 9 20
East Windsor:All Styles
217 0 99 30 30 71 32.7% 14 3 12
East Windsor:Condo/ THouses
141 0 99 19 19 60 42.5% 9 2 8
East Windsor:55+
17 0 99 3 3 -- -- 2 0 0
East Windsor: Single Family
59 0 99 8 8 11 18.6% 3 1 4
12/6/10Towns 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
Hopewell Twp.All Styles
130 1 130 18 17 25 19% 16 5 4
Hopewell Twp. Condo/ T.Houses
11 0 0 2 2 3 27% 2 1 0
Hopewell Twp.:55+
8 0 0 1 1 -- -- 0 1 0
Hopewell Twp Single Family 111 1 111 15 14 22 20% 14 3 4
Hamilton: All Styles 588 100 6 84 -16 115 19.5% 44 25 39Hamilton:Condo/ THouses
106 20 5 14 -6 24 23% 5 6 2
Hamilton:55+ 38 6 6 3 -3 -- -- 1 2 4Hamilton: Single Family 444 74 6 67 -7 91 20% 38 17 33
12/6/10Towns 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
RobbinsvillAll Styles 144 18 8 29 11 37 26% 13 6 11
RobbinsvillCondo/ T.Houses
64 6 11 14 9 20 31% 7 4 7
RobbinsvillSingle Family
80 12 7 15 3 7 21% 6 2 4
Hightstown Boro: All Styles
65 1 65 10 9 9 14% 8 5 4
Pennington 15 2 7.5 2 0 1 6% 1 2 3
Hopewell Boro 18 2 9 2 0 1 5% 1 2 3
12/6/10Towns 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
Montgomery
All Styles130 22 5.9 26 +4 21 16 16 12 16
Montgomery
Condo/Twnhms
26 5 5.2 10 +5 3 11 2 2 5
Single Family 104 17 6.1 16 -1 18 17 14 10 11
Hillsborough
All Styles259 28 9.2 25 -3 40 15 14 10 14
Hillsborough
Condo/Twnhms
89 9 9.9 14 +5 21 23 5 6 5
Hillsborough
Single Family
170 19 8.9 11 -8 19 11 9 4 9
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