greater princeton nj real estate market update 1 31 13

In 2012 Home Prices

rose 4.6% over 2011.

Forecasters and Economists

predict a 3% rise in 2013.

Market Confidence Meter

The jobs report showed gains in nonfarm payroll

of 1.86M new jobs in 2012.

The household survey showed the

unemployment rate unchanged at 7.8%


Real spending on residential construction rose 13.6% in the four

quarters ending September 2012,

the most rapid rise since 1994.


The Federal Reserve will continue boosting

housing market recovery by keeping

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


In New Jersey, November was the 13th consecutive month of increased sales. State

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

of the housing bubble. With sales up and supply down, laws of supply and demand point to a good

NJ market for 2013.


The average rate on a 30-year, fixed rated mortgage has fallen

as low as 3.4%.

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)

In Mercer County ,home sales

were up 13.6% in 2012 over 2011,

with the averagesale price up 1.5%.*

* source: Trend MLS


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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rpti

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in M

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ths

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3

4

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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.

1/28/13Towns 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 4 16.0 19 15 6 9.4% 4 1 12

West Windsor Condo/ T.Houses

12 2 6.0 6 4 1 8.3% 1 1 5

West Windsor55+

8 0 99 1 1 _ _ 0 0 0

West Windsor Single Family

44 2 22.0 12 10 5 11.4% 3 0 7

Lawrence: All Styles 121 13 9.3 23 10 13 10.7% 11 2 18

Lawrence:Condo/THouses

37 6 6.2 5 (1) 7 18.9% 3 1 0

Lawrence: 55+ 8 3 2.7 1 (2) _ _ 1 0 0Lawrence: Single Family

76 4 19.0 17 13 6 7.9% 7 2 18

1/28/13

Towns Active Listings

Pending in Last 30 Days






Expired Listings

W/drawn Listings

Closed Listings

PlainsboroAll Styles

61 10 6.1 14 4 10 16% 11 0 8

PlainsboroCondo/ THouses

30 5 6 9 4 7 23% 7 0 4

Plainsboro55+

17 3 5.66 2 (1) 2 12% 1 0 1

PlainsboroSingle Family

14 2 7 3 1 1 7% 3 0 3

Cranbury:All Styles

12 1 12 5 4 2 16% 3 0 3

1/28/13Towns Active







Expired Listings

W/drawn Listings

Closed Listings

Ewing: All Styles

198 17 11 33 16 33 17% 16 5 16

Ewing : Condo/ T.Houses

29 3 10 6 3 6 21% 1 3 0

Ewing 55+:

8 1 8 2 1 --- --- 0 0 0

Ewing:Single Family

161 13 12 25 12 27 17% 15 2 16

East Windsor:All Styles

139 12 12 26 14 18 13% 11 2 11

East Windsor:Condo/ Thouses

85 7 12 16 9 13 15% 7 1 8

East Windsor:55+

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

East Windsor: Single Family

46 5 9 9 4 5 11% 4 1 2

1/28/13Towns Active







Expired Listings

W/drawn Listings

Closed Listings

Hopewell Twp.All Styles

101 6 16.8 16 10 12 11.9% 11 8 7

Hopewell Twp. Condo/ T.Houses

2 0 99 1 1 1 50% 2 2 2

Hopewell Twp.:55+

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

Hopewell Twp Single Family 98 6 16.3 15 9 11 11.2% 9 6 4

Hamilton: All Styles 390 26 15 70 44 67 18.6% 25 9 32

Hamilton:Condo/ THouses 79 6 13.2 12 6 16 20.3% 5 2 4

Hamilton:55+ 21 1 21 7 6 -- -- 1 1 2

Hamilton: Single Family 290 19 15.3 51 32 51 17.6% 19 6 26

1/28/13Towns Active







Expired Listings

W/drawn Listings

Closed Listings

RobbinsvilleAll Styles 71 11 6 17 6 13 18% 11 4 13

RobbinsvilleCondo/ T.Houses

35 6 6 7 1 6 17% 6 1 8

Single Family 36 5 7 10 5 7 19% 5 3 5

Hightstown Boro: All Styles

51 6 9 8 2 15 29% 5 0 6

Pennington 14 3 5 3 0 2 14% 1 0 2

Hopewell Boro 6 3 2 1 (2) 5 83% 0 2 1

1/28/13Towns Active







Expired Listings

W/drawn Listings

Closed Listings

Princeton: All Styles 111 9 12.3 18 9 14 12.6% 8 7 20

Princeton:Condo/ Thouses 28 4 7 3 -1 4 14.3% 3 1 4

Princeton:Single Family 83 5 16.6 15 10 10 12% 5 6 16

1/28/13Towns Active







Expired Listings

W/drawn Listings

Closed Listings

South

Brunswick

All Styles

149 9 16 28 19 14 9 32 6 36

South BrunswickCondo/ T.Houses

53 4 13 12 8 8 15 10 1 9

South Brunswick

55+

34 0 99 2 2 4 12 1 2 4

South Brunswick

Single Family

62 5 12 14 9 2 3 21 3 17

Monroe:

All Styles 401 25 16 109 84 17 4 48 8 45

Monroe:

55+ 268 15 18 76 61 9 3 27 4 34

Monroe:

Single Family 143 10 14 33 23 8 6 21 4 11

1/28/13Towns Active







Expired Listings

W/drawn Listings

Closed Listings

Montgomery

All Styles 90 18 5 23 +5 14 15% 14 5 12

Montgomery

Condo/Twnhms 11 3 3.7 6 +3 2 18% 3 2 5

Single Family 79 15 5.3 17 +2 12 15% 11 3 7

Hillsborough

All Styles 174 24 7.2 49 +25 23 13% 18 10 14

Hillsborough

Condo/Twnhms 70 9 7.8 22 +13 11 16% 9 5 8

Hillsborough

Single Family 104 15 6.9 27 +12 12 11% 9 5 6

greater princeton nj real estate market update 1 31 13

Documents

12813townsactive

market confidence

absorption

real estate

rate inlistings

reducedinvent

loss

year