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