Greater Princeton NJ Real Estate Market Update

The National Association of Realtors reports

total existing-home sales for 2013

were the strongest

in seven years.

Market Confidence Meter

Today’s jobs report reveals the unemployment

rate down to 6.6%

More people working, plus higher home prices,

means fewer foreclosures, a continued housing

recovery and economic strengthening.


Nearly every city in the U.S. is expected to see

economic growth in 2014, according to the U.S.

Conference of Mayors.

Case-Shiller forecasts a 6.8% rise in the median home value for 2014.


In New Jersey, 2013 home sales contracts rose to the highest level since 2006.

Average home prices in the

state rose 4-5% in 2013.

Housing inventory remains at its lowest level since 2005.


The average rate on a 30-year,

fixed-rate mortgage hovers near

4.375%.

Buyers take note: rates are projected to climb

above 5% in 2014.


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 3.75% 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.

12

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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1

2

3

4

5

6

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8

9

10

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No

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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.

1/27/14

TownsActive Listings

Pending 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 46 12 3.83 14 2 5 10.9 7 5 13West Windsor Condo/ T.Houses

7 3 2.33 5 2 0 0 0 2 4

West Windsor55+ 0 0 0 0 0 -- -- 0 1 3

West Windsor Single Family 39 9 4.33 9 0 5 12.8 7 2 6

Lawrence: All Styles 118 11 10.73 18 7 19 16.1 9 10 6Lawrence:Condo/THouses

27 3 9 8 5 8 29.6 4 2 2

Lawrence: 55+ 7 0 999 1 1 -- -- 0 2 0

Lawrence: Single Family 84 8 10.5 9 1 11 13.1 5 6 4

1/27/14

Towns Active Listings







Expired Listings

W/drawn Listings

Closed Listings

PlainsboroAll Styles

33 3 11 10 7 1 3% 7 0 3

PlainsboroCondo/ THouses

11 2 5.5 2 0 0 0 4 0 0

Plainsboro55+

7 1 7 3 2 0 0 0 0 0

PlainsboroSingle Family

15 0 15 5 5 1 6% 3 0 3

Cranbury:All Styles

14 1 14 5 4 4 28% 1 0 0

1/27/14Towns Active

ListingsPending in Last 30 Days






Expired Listings

W/drawn Listings

Closed Listings

Ewing: All Styles

180 13 14 32 19 34 19% 23 6 10

Ewing : Condo/ T.Houses

26 6 4 8 2 3 12% 4 0 2

Ewing 55+:

1 0 999 0 0 --- --- 0 0 2

Ewing:Single Family

153 7 22 24 17 31 20% 19 6 6

East Windsor:All Styles

99 18 6 25 7 7 14% 12 3 16

East Windsor:Condo/ Thouses

48 12 4 13 1 4 8% 7 3 9

East Windsor:55+

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

East Windsor: Single Family

43 5 9 12 7 3 7% 5 0 7

1/27/14








Expired Listings

W/drawn Listings

Closed Listings

Hopewell Twp.All Styles

118 8 14.75 13 5 15 12.7% 5 2 4

Hopewell Twp. Condo/ T.Houses

9 1 9.00 3 2 1 11.1% 0 0 1

Hopewell Twp.:55+

1 1 1.0 0 (1) 0 0 0 0 0

Hopewell Twp Single Family 108 6 18.00 10 4 14 12.9% 5 2 3

Hamilton: All Styles 393 32 12.28 68 36 67 17.1% 36 13 35

Hamilton:Condo/ THouses 81 7 11.57 16 9 13 16.1% 11 4 2

Hamilton:55+ 8 0 0 1 1 0 0 0 0 1

Hamilton: Single Family 304 25 12.16 51 26 54 17.8% 25 9 32

1/27/14








Expired Listings

W/drawn Listings

Closed Listings

RobbinsvilleAll Styles 60 9 7 18 9 9 15% 4 3 12

RobbinsvilleCondo/ T.Houses

26 3 1 9 6 3 12% 3 3 7

Single Family 34 6 6 9 3 6 18% 1 0 5

Hightstown Boro: All Styles

27 5 5 3 (2) 2 7% 2 3 8

Pennington 19 0 999 5 5 1 5% 2 2 2

Hopewell Boro 9 3 3 1 (2) 2 22% 1 2 1

1/27/14








Expired Listings

W/drawn Listings

Closed Listings

Princeton: All Styles 89 7 12.7 14 7 7 7.9% 2 6 14

Princeton:Condo/ Thouses

27 5 5.4 8 3 3 11.1% 0 0 2

Princeton:Single Family

62 2 31 6 4 4 6.5% 2 6 12

2006 - 2008 Core Market Comparison: Week of 1/20/14

Town’12

Inven.

Count

‘12

Pending

Sales

‘12 Absorp.

Rate

‘13

Inven.

Count

‘13 Pending

Sales

‘13 Absorp.

Rate

‘14

Inven.

Count

‘14

Pending Sales

‘14

Absorp.

Rate

Inventory compared

to 2012

Inventory compared to

2013

West Windsor 88 9 9.8 55 6 9.2 45 8 5.63 (48%) (18%)

Plainsboro 61 10 6.1 77 7 11 35 5 5 (42%) (54%)

Lawrence 161 6 26.8 120 6 20 119 7 17 (26%) (0.8%)

East Windsor 184 8 23 143 9 16 99 16 6 (46%) (30%)

Hamilton 534 22 24.3 388 27 14.4 378 23 16.43 (29%) (30%)

Hopewell Twp 122 7 17.4 103 5 20.6 115 7 16.43 (5%) +11%

Robbinsville 106 15 7 61 10 6 51 8 6 (51%) (16%)

Princeton 135 4 33.7 106 7 15.1 87 7 124 (35%) (17%)

South Brunswick 208 10 21 154 6 25 128 5 25 (38%) (16%)