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

1. Real Estate is Local

Top Five Rules for Understanding the Real

Estate Market:

2. Real Estate is Local

3. Real Estate is Local

4. Real Estate is Local5. 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.

Market Absorption Scale(Absorption Rate in Months)

5-6 months absorption rate indicates a normal market.

Market Scale for Supply & Market Scale for Supply & DemandDemand

High Supply/Low Demand Low Supply/High DemandNormal

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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.

8/9/10Towns 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 61 1 61 10 9 13 21.3% 1 0 5

Pton -Boro Condo/ Thouses 27 1 27 8 7 7 25.9% 1 0 2

Pton-BoroSingle Family 34 0 99 3 3 6 17.6% 0 0 3

Pton Twp: All Styles 131 11 11.9 15 4 28 21.4% 4 7 13

Pton Twp: Condo/ Thouses 12 2 6 3 1 1 8.3% 1 1 3

Pton Twp:Single Family 119 9 13.2 12 3 27 22.7% 3 6 10

8/9/10Towns 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

West Windsor: All Styles

139 22 6.3 27 5 37 26.6% 7 7 30

West Windsor Condo/ T.Houses

22 6 3.7 5 -1 2 9% 1 0 8

West Windsor55+

9 1 9 2 1 -- -- 0 5 1

West Windsor Single Family

108 15 7.2 20 5 35 32.4% 6 2 21

Lawrence: All Styles

235 13 18.1 34 21 53 22.6% 7 16 26

Lawrence:Condo/THouses

72 5 14.4 14 9 23 32% 3 8 7

Lawrence: 55+

21 1 21 3 2 -- -- 1 1 5

Lawrence: Single Family

142 7 20.3 17 10 30 21.1% 3 7 14

8/9/10Towns 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

298 12 24.8 50 38 74 24.8% 15 10 13

Ewing : Condo/ T.Houses

47 2 23.5 8 6 12 25.5% 4 2 1

Ewing 55+:

6 2 3 0 -2 -- -- 1 0 0

Ewing:Single Family

245 8 30.6 42 34 62 25.3% 10 8 12

East Windsor:All Styles

228 8 28.5 42 34 43 18.8% 14 5 10

East Windsor:Condo/ THouses

128 5 25.6 23 18 17 13.3% 7 1 4

East Windsor:55+

21 0 99 2 2 -- -- 2 0 2

East Windsor: Single Family

79 3 26.3 17 14 26 32.9% 5 4 4

8/9/10Towns 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

168 17 10 33 16 30 18% 14 17 24

Hopewell Twp. Condo/ T.Houses

13 2 6.5 4 2 3 23% 1 3 5

Hopewell Twp.:55+

11 0 99 - - - - - - -

Hopewell Twp Single Family 144 15 10 29 14 27 19% 13 14 19

Hamilton: All Styles 635 51 12 116 65 166 26% 51 22 49

Hamilton:Condo/ THouses 114 9 13 29 20 28 25% 11 4 12

Hamilton:Single Family 474 42 11 87 45 138 29% 40 18 37

Hamilton: 55+47 0 99 - - - - - - -

8/9/10Towns 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

RobbinsvilleAll Styles 153 14 11 28 14 36 24% 16 4 14

RobbinsvilleCondo/ T.Houses

73 10 7.3 10 0 18 25% 9 2 8

Single Family80 4 20 18 14 18 23% 17 2 6

Hightstown Boro: All Styles

73 1 73 12 11 15 21% 4 5 2

Pennington17 4 4 2 (2) 2 12% 0 3 1

Hopewell Boro18 4 5 0 (4) 3 17% 0 1 3

8/9/10Towns 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

South

Brunswick

All Styles

239 13 18 43 30 43 18% 26 3 18

South BrunswickCondo/ T.Houses

76 3 25 18 15 17 22% 4 7 9

South Brunswick

55+

29 5 6 3 -2 2 6% 4 3 0

South Brunswick

Single Family

134 5 27 23 18 24 18% 18 19 9

Monroe:

All Styles 480 31 13 83 52 90 19% 21 51 43

Monroe:

55+ 294 22 4 44 22 65 22% 3 30 27

Monroe:

Single Family 186 9 21 39 30 25 13% 18 21 16

8/9/10Towns 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 Styles 162 12 13.5 27 -14 51 31% 8 8 25

Montgomery

Condo/Twnhms 23 4 6 6 3 4 17% 2 1 0

Single Family139 8 17 21 -17 47 34% 6 7 25

Hillsborough

All Styles 265 27 10 66 21 67 25% 15 9 21

Hillsborough

Condo/Twnhms 92 14 6.5 19 5 22 24% 3 4 7

Hillsborough

Single Family 173 13 13 47 16 45 26% 12 5 14

Incredibly Low Interest Incredibly Low Interest RatesRates

Source: Weichert, Realtors Financial Services

Over the past few weeks, interest rates have hit

the lowest point since official tracking began—

hitting 4 3/8 %

for 30-year fixed rate mortgages

with no points.

What happens now?What happens now?

These historically low mortgage interest rates, lower home prices, and a good number of

homes to choose from, should revive sales and housing starts once the recent dip owing to the

expiration of the Federal homebuyer tax credit is behind us.

Strategies to Buy:

Understand the complete financial picture—the mortgage-interest tax deduction,

the real estate tax deduction, appreciating home value over time—

when buying a home.