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Market Confidence Market Confidence Meter Meter Nationwide, May pending home sales reached their highest level in Nine Years! National Association of Realtors’ chief economist Lawrence Yun attributed this to the steady pace of solid job creation for over a year.
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Transcript of Slideshare pres 7 21 15
Market Confidence MeterMarket Confidence Meter
Nationwide, May pending home sales reached their
highest level in Nine Years!
National Association of Realtors’ chief economist
Lawrence Yun attributed this to
the steady pace of solid job creation for over a year.
Market Confidence MeterMarket Confidence Meter
The national median sales price of an existing home is 7.9% higher than a year ago. Sales increased in all
areas of the country.
Market Confidence MeterMarket Confidence Meter
The majority of Americans believe real estate is the best long-term investment, over
gold, stocks, savings accounts and bonds, according to a
recent Gallup poll.
Fannie May’s May 2015 Housing Survey shows 66% of Americans prefer to buy
their next house rather than rent.
Market Confidence MeterMarket Confidence Meter
That same Fannie Mae Housing Survey reported 49% of people surveyed
said it is a good time to sell a home!
Even better news: 28% of consumers saw their household income
grow substantially in the past year!
Market Confidence MeterMarket Confidence Meter
In New Jersey, May home sale contracts rose to nearly
the highest level since March 2006!
76% of NJ counties have less than 8 months of
housing supply, which is a balance point for home prices, according to the
Otteau Group.
Market Confidence MeterMarket Confidence Meter
The Mortgage Bankers Association reports that
mortgage application volume is up 22% over
mid-July last year.
This is consistent with a buying market positively
affected by employment growth.
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, still hovering around 4% for 30-year fixed-rate mortgages, AFFORDABILITY is HIGH, but will fall as prices and mortgage rates rise!
• consult with an experienced New Jersey mortgage counselor to assess your buying power and position yourself in the market.
If you are a Seller,
• Accurate pricing is all important.
• Professional staging makes the difference in getting a good, negotiable offer.
• Pre-inspection, with problems resolved before listing, prevents unwelcome surprises when your buyer has a home inspection.
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 Local4. Real Estate is Local5. Real Estate is Local
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,” 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 Ab
sorp
tion
in M
onth
s
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3
4
5
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9
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No
rma
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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.
West Windsor Market Activity7/21/15
StyleActive
Listings Under
Contract in
30 Days Absorption
Rate
New Listings
in 30 Days Net
Inventory
Gain/Loss
Price Reductions in
30 Days % of Invent.
Reduced Expired
Listings in
30 Days
W/drawn Listings in
30 days Closed Sales in 30 days
All Styles 122 28 4.36 38 10 34 28% 2 5 46
Single Family 100 20 5 29 9 30 30% 2 4 34
Condo/ Townhouse 19 4 4.75 7 3 4 21% 0 1 10
Adult Community 3 4 0.75 2 -2 -- -- 0 0 2
Princeton Market Activity 7/21/15
StyleActive
Listings Under
Contract in
30 Days Absorption
Rate
New Listings
in 30 Days Net
Inventory
Gain/Loss
Price Reductions in
30 Days % of Invent.
Reduced Expired
Listings in
30 Days
W/drawn Listings in
30 days Closed Sales in 30 days
All Styles 158 11 14 29 +18 32 22% 4 8 48
Single Family 131 9 14 22 +13 28 21% 3 5 41
Condo/ Townhouse 27 2 13 7 +5 4 15% 1 3 7
Plainsboro Market Activity 7/21/15
StyleActive
Listings Under
Contract in
30 Days Absorption
Rate
New Listings
in 30 Days Net
Inventory
Gain/Loss
Price Reductions in
30 Days % of Invent.
Reduced Expired
Listings in
30 Days
W/drawn Listings in
30 days Closed Sales in 30 days
All Styles 99 12 8.25 31 19 22 22% 3 0 12
Single Family 29 8 3.6 10 2 11 38% 0 0 0
Condo/ Townhouse 61 3 20.33 18 15 10 16% 3 0 12
Adult Community 9 1 9 3 6 1 11% 0 0 0
East Windsor Market Activity 7/21/15
StyleActive
Listings Under
Contract in
30 Days Absorption
Rate
New Listings
in 30 Days Net
Inventory
Gain/Loss
Price Reductions in
30 Days % of Invent.
Reduced Expired
Listings in
30 Days
W/drawn Listings in
30 days Closed Sales in 30 days
All Styles 162 18 9 30 12 35 22% 1 2 34
Single Family 67 7 10 15 8 17 25% 0 1 12
Condo/ Townhouse 83 11 8 13 2 18 22% 1 1 17
Adult Community 12 0 999 2 2 ---- ---- 0 0 5
Lawrenceville Market Activity 7/21/15
StyleActive
Listings Under
Contract in
30 Days Absorption
Rate
New Listings
in 30 Days Net
Inventory
Gain/Loss
Price Reductions in
30 Days % of Invent.
Reduced Expired
Listings in
30 Days
W/drawn Listings in
30 days Closed Sales in 30 days
All Styles 203 17 12 45 28 45 22% 9 6 38
Single Family 126 6 21 23 17 26 21% 7 4 21
Condo/ Townhouse 67 11 6 21 10 19 28% 2 2 12
Adult Community 10 0 999 1 1 -- -- 0 0 5
Hopewell Twp Market Activity 7/21/15
StyleActive
Listings Under
Contract in
30 Days Absorption
Rate
New Listings
in 30 Days Net
Inventory
Gain/Loss
Price Reductions in
30 Days % of Invent.
Reduced Expired
Listings in
30 Days
W/drawn Listings in
30 days Closed Sales in 30 days
All Styles 191 12 15.9 30 18 52 27.2% 8 6 52
Single Family 169 10 16.9 22 12 48 28.4% 6 5 36
Condo/ Townhouse 21 0 999 8 8 4 19.0% 2 1 14
Adult Community 1 2 0.5 0 (2) 0 0.0% 0 0 2
Robbinsville Market Activity 7/21/15
StyleActive
Listings Under
Contract in
30 Days Absorption
Rate
New Listings
in 30 Days Net
Inventory
Gain/Loss
Price Reductions in
30 Days % of Invent.
Reduced Expired
Listings in
30 Days
W/drawn Listings in
30 days Closed Sales in 30 days
All Styles 125 15 8.3 21 6 30 24% 4 4 29
Single Family 50 5 10 13 8 16 32% 2 2 9
Condo/ Townhouse 75 10 7.5 8 -2 14 18.7% 2 2 20
Hamilton Market Activity 7/21/15
StyleActive
Listings Under
Contract in
30 Days Absorption
Rate
New Listings
in 30 Days Net
Inventory
Gain/Loss
Price Reductions in
30 Days % of Invent.
Reduced Expired
Listings in
30 Days
W/drawn Listings in
30 days Closed Sales in 30 days
All Styles 539 69 7.8 117 48 159 29.5% 27 14 75
Single Family 439 58 7.6 96 38 136 31.0% 19 11 56
Condo/ Townhouse 86 10 8.6 19 9 23 26.7% 7 2 14
Adult Community 14 1 14.0 2 1 0 0.0% 1 1 5
Ewing Market Activity 7/21/15
StyleActive
Listings Under
Contract in
30 Days Absorption
Rate
New Listings
in 30 Days Net
Inventory
Gain/Loss
Price Reductions in
30 Days % of Invent.
Reduced Expired
Listings in
30 Days
W/drawn Listings in
30 days Closed Sales in 30 days
All Styles 229 26 9 49 23 47 21% 10 9 26
Single Family 186 19 10 36 17 40 22% 9 7 25
Condo/ Townhouse 43 7 6 13 6 7 16% 1 2 1
Adult Community 0 0 N.A. 0 0 ---- ---- 0 0 0
Montgomery Market Activity 7/21/15
StyleActive
Listings Under
Contract in
30 Days Absorption
Rate
New Listings
in 30 Days Net
Inventory
Gain/Loss
Price Reductions in
30 Days % of Invent.
Reduced Expired
Listings in
30 Days
W/drawn Listings in
30 days Closed Sales in 30 days
All Styles 150 40 3.75 61 +21 34 23% 6 4 41
Single Family 133 27 4.9 47 +20 31 23% 4 4 30
Condo/ Townhouse 17 13 1.3 14 +1 3 18% 2 0 11
Hillsborough Market Activity 7/21/15
StyleActive
Listings Under
Contract in
30 Days Absorption
Rate
New Listings
in 30 Days Net
Inventory
Gain/Loss
Price Reductions in
30 Days % of Invent.
Reduced Expired
Listings in
30 Days
W/drawn Listings in
30 days Closed Sales in 30 days
All Styles 201 66 3.0 49 -17 47 23% 3 6 60
Single Family 131 35 3.7 31 -4 26 20% 1 4 34
Condo/ Townhouse 70 31 2.2 18 -13 21 30% 2 2 26
Hopewell Boro Market Activity 7/21/15
StyleActive
Listings Under
Contract in
30 Days Absorption
Rate
New Listings
in 30 Days Net
Inventory
Gain/Loss
Price Reductions in
30 Days % of Invent.
Reduced Expired
Listings in
30 Days
W/drawn Listings in
30 days Closed Sales in 30 days
All Styles 6 1 6 3 2 1 17% 0 1 3
Hightstown Market Activity 7/21/15
StyleActive
Listings Under
Contract in
30 Days Absorption
Rate
New Listings
in 30 Days Net
Inventory
Gain/Loss
Price Reductions in
30 Days % of Invent.
Reduced Expired
Listings in
30 Days
W/drawn Listings in
30 days Closed Sales in 30 days
All Styles 46 2 23 11 9 13 28.3% 1 1 7
Cranbury Market Activity 7/21/15
StyleActive
Listings Under
Contract in
30 Days Absorption
Rate
New Listings
in 30 Days Net
Inventory
Gain/Loss
Price Reductions in
30 Days % of Invent.
Reduced Expired
Listings in
30 Days
W/drawn Listings in
30 days Closed Sales in 30 days
All Styles 37 2 18.5 8 6 1 2% 0 0 3
Pennington Boro Market Activity 7/21/15
StyleActive
Listings Under
Contract in
30 Days Absorption
Rate
New Listings
in 30 Days Net
Inventory
Gain/Loss
Price Reductions in
30 Days % of Invent.
Reduced Expired
Listings in
30 Days
W/drawn Listings in
30 days Closed Sales in 30 days
All Styles 28 2 14 3 1 10 35.7% 0 1 6
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