By the end of July, housing prices in all 20 cities of the S&P/Case Shiller index showed increases over the prior month. New home sales are up 27.7% from 2011 with prices showing the largest monthly increase since 1963. Market Confidence Meter
Greater Princeton NJ Real Estate Update
Oct 19, 2014
Greater Princeton NJ Real Estate Data and Trends for October 2012
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By the end of July, housing prices in all 20 cities of the S&P/Case Shiller index showed
increases over the prior month.
New home sales are up 27.7% from 2011 with prices showing the largest monthly
increase since 1963.
Market Confidence Meter
The National Association of Realtors is now
forecasting overall home sales up 8% for 2012.
The inventory of existing homes for sale is at 6.1
months supply, indicating a balanced market for
both buyers and sellers,.
Market Confidence Meter
“Housing is no longer a negative. It is turning
positive, and we see the data reflecting that,”
said Ivy Zelman, chief executive at the research
firm Zelman & Associates.
Market Confidence Meter
The Federal Reserve will continue boosting
housing market recovery by purchasing
$40 Billion/month of mortgage-backed
securities and keeping downward pressure on
interest rates.
Market Confidence Meter
In New Jersey, home purchases were up 24% in July, the 10th
consecutive month of increases, accompanied by a 17% drop in inventory, according to Jeffrey Otteau of the Otteau Valuation Group. Median prices are up,
suggesting statewide increases for the second quarter of 2012,
reported Otteau.
Market Confidence Meter
The average rate on a 30-year, fixed rated mortgage fell to
3.4% by late September, according to Freddie Mac.
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!
Market Confidence Meter
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)
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.
13
Market Absorption ScaleMarket Absorption Scale(Absorption Rate in Months)(Absorption Rate in Months)
Ma
rke
t A
bso
rpti
on
in M
on
ths
1
2
3
4
5
6
7
8
9
10
11
12
No
rma
l
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.
10/2/12Towns 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
113 16 7.1 24 8 30 26.5% 1 10 31
West Windsor Condo/ T.Houses
23 4 5.8 6 2 7 30.4% 0 2 10
West Windsor55+
14 1 14 3 2 _ _ 0 0 2
West Windsor Single Family
76 11 6.9 15 4 23 30.3% 1 8 19
Lawrence: All Styles 170 7 24.3 28 21 40 23.5% 15 7 19
Lawrence:Condo/THouses
50 4 12.5 6 2 20 40.0% 4 2 7
Lawrence: 55+ 12 1 12 4 3 _ _ 2 0 0Lawrence: Single Family
108 2 54 18 16 20 18.5% 9 5 12
10/2/12Towns 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
246 14 18 49 35 41 17% 20 9 17
Ewing : Condo/ T.Houses
28 4 7 8 4 4 14% 6 1 2
Ewing 55+:
5 1 5 2 1 --- --- 0 0 1
Ewing:Single Family
213 9 24 39 30 37 17% 14 8 14
East Windsor:All Styles
175 20 9 28 8 43 25% 7 7 24
East Windsor:Condo/ Thouses
98 10 10 13 3 27 28% 4 3 12
East Windsor:55+
14 0 999 3 3 --- --- 0 0 5
East Windsor: Single Family
63 10 6 12 2 16 25% 3 4 7
10/2/12Towns 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
139 14 9.9 28 14 29 20.1% 13 10 25
Hopewell Twp. Condo/ T.Houses
14 5 2.8 4 -1 2 14.3% 0 1 6
Hopewell Twp.:55+
4 0 00 0 0 -- -- 0 0 3
Hopewell Twp Single Family 121 9 13.4 24 15 27 22.3% 13 9 16
Hamilton: All Styles 482 51 9.5 83 32 116 24.1% 24 27 66
Hamilton:Condo/ THouses 81 10 8.1 10 0 19 23.5% 5 6 8
Hamilton:55+ 19 6 3.2 4 -2 -- -- 2 0 4
Hamilton: Single Family 382 35 10.9 69 34 97 25.4% 17 21 54
10/2/12Towns 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
RobbinsvilleAll Styles 90 18 5 21 3 25 28% 5 10 25
RobbinsvilleCondo/ T.Houses
45 11 4 11 0 11 24% 5 8 16
Single Family 45 7 6 10 3 14 31% 0 7 9
Hightstown Boro: All Styles
55 4 14 10 6 3 5% 4 1 4
Pennington 23 3 8 3 0 4 17% 1 1 6
Hopewell Boro 10 7 1.4 4 (3) 1 10% 0 1 2
10/2/12Towns 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
35 4 8.8 10 6 5 14.3% 1 2 7
Princeton -Boro Condo/ Thouses
13 2 6.5 1 -1 3 23% 0 2 6
Princeton-BoroSingle Family
22 2 11 9 7 2 9.1% 1 0 1
Princeton Twp: All Styles
132 1 132 21 20 24 18.2% 2 6 20
Princeton Twp: Condo/ Thouses
18 1 18 6 5 4 22.2% 0 1 5
Pton Twp:Single Family 114 0 99 15 15 20 17.5% 2 5 15
10/2/12Towns 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
South
Brunswick
All Styles
215 22 16 24 2 73 34 16 3 46
South BrunswickCondo/ T.Houses
71 6 12 9 3 38 52 10 1 17
South Brunswick
55+
30 1 30 2 1 2 7 0 0 3
South Brunswick
Single Family
114 15 8 13 -2 33 29 6 2 26
Monroe:
All Styles 452 24 19 97 73 104 23 25 6 80
Monroe:
55+ 284 16 20 65 49 78 13 14 1 15
Monroe:
Single Family 168 8 21 32 24 24 14 29 5 15
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