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Today is the grand opening of the new Princeton Pool! The old pool holds many memories of long, fun filled summers for many princeton residents. The new pool should double that fun. The article below contains more information about the new pool.
http://princeton.patch.com/articles/pool-opens-today-free-admission-noon-to-3-p-m#c
Enjoy!
The spring real estate market in the Princeton area this year has been a busy one. Tim Mclaughlin of Weichert Financial services describes it as follows, “Demand for new U.S. homes rose more than forecast in April, indicating residential real estate may contribute to economic growth for the first time in seven years. Purchases rose to a 343,000 annual rate, up 3.3 percent from a revised 332,000 in March, the Commerce Department reported Thursday in Washington. The median forecast in a Bloomberg News survey of 72 economists was 335,000. Data yesterday showed April sales of previously owned homes rose in every region.”It’s very clear now that the housing market has turned a corner,” said Richard DeKaser, deputy chief economist at Parthenon Group LLC, who projected sales would increase to a 339,000 pace. “The only question is how strong the rebound is going to be. It bodes well for the broader economy.”Job growth, improving affordability and record-low interest rates are helping propel sales of both existing and new homes”
The chart above reinforces this data. It shows the year over year data for the New Jersey real estate market. If you want to test out the waters in the Princeton area real estate market click on the links below and start searching. Give me a call for more details.
Click here to search Homes For Sale in Princeton
Housing Affordability at an All Time High
Tim Mclaughlin, VP Weichert Financial Services
Housing affordability conditions for all buyers reached a milestone in the first quarter, according to the National Association of Realtors.
NAR’s composite quarterly Housing Affordability Index rose to a record high of 205.9 in the first quarter based on the relationship between median home price, median family income and average mortgage interest rate. This is the first time the quarterly index broke the 200 mark since NAR record keeping began in 1970.
Furthermore, NAR’s index shows the median income family , earning just under $61,000, could afford a home costing $325,000 in the first quarter, which is more than double the national median existing single-family home price of $158,000. The median monthly mortgage principal and interest payment for a median priced home would take only 13.5% of gross income, given the level of where historically low interest rates are.
A companion NAR index measuring the ability of first time home buyers to purchase a home also set a record, with the first time buyer index reaching 135.8 in the first quarter.
“For those with good credit, we’ve never seen better housing affordability conditions or market opportunities than we see at present,” says NAR President Moe Veissi.
Today’s interest rate for a 30 year fixed conforming loan is 3.625%. And for a 15 year fixed conforming loan it is 2.875%. To search for homes for sale in Princeton click on the links below.
Click on this link to search for Homes for Sale in Princeton
Click this link for Homes for rent in Princeton
The real estate market in the Princeton Area is at the point where owning a home is a better choice than renting. The chart below illustrates that using the rates of appreciation/depreciation that are being predicted for the next 5 years, homes in this area will see a net appreciation of 6%. That means in 5 years, a home with a market value today of $329,000 will see $19,740 worth of appreciation. Couple that appreciation with a tax benefit of $5,000 a year and in 5 years you have a net gain of $44,740. This net gain versus an outlay of $96,000 over 5 years makes home ownership a better choice. Rents are expected to rise 10% in the next year according to CNN Money. Click on this link if you would like to see the current Princeton homes for sale. Feel free to call me for details on any of these homes.
| Cost of Renting Vs. Owning | |||||||
| Purchase Price | $329,000 | Loan Amt. | $317,485 | ||||
| Downpayment | $11,515 | Monthly P&I | $1,802 | ||||
| Appreciation/Depreciation | Home Value | ||||||
| Yr. 1 | -3% | $319,130 | |||||
| Yr. 2 | 0% | 319,130 | |||||
| Yr. 3 | 1% | 322,321 | |||||
| Yr. 4 | 3% | 331,990 | |||||
| Yr. 5 | 5% | 348,590 | |||||
| 5 Yr. Appreciation/ Depreciation | $19,740.00 | ||||||
| Tax Benefit | Vs. Paying Rent | $ 1,600 | |||||
| Yr. 1 | $5,000 | $19,200 | |||||
| Yr. 2 | 5,000 | 19,200 | |||||
| Yr. 3 | 5,000 | 19,200 | |||||
| Yr. 4 | 5,000 | 19,200 | |||||
| Yr. 5 | 5,000 | 19,200 | |||||
| 5 Yr. Total | $ 25,000 | $96,000 | |||||
| Total Gain | $44,740 | ||||||
The chart above is a snapshot of the inventory of homes on the market as of May 7th 2012 in Princeton. The absorption rate is 8.3 months. This means it would take 8.3 months to sell all the inventory on the market right now if no new inventory were to be put on the market. A normal market has 6 months of inventory. So we are heading towards a normalized market in Princeton. This concept is illustrated below.
Click here to search houses for sale in Princeton.
Click here to search houses for rent in Princeton
Below is a chart summarizing the activity in the Princeton Township real estate market for the year 2011. There were 180 housing units sold for a total dollar volume of $168,987,810. The average sales price was $938,821. The houses sold on average for 89.7% of listing price. As of 4/17/2012, there was a 10 month absorption rate in Princeton Township. This means that as of that date if no more homes were to come on the market it would take 10months to sell the homes that are on the market. This absorption rate means it is still a buyers market. However the sales activity has been picking up in recent weeks. there are 58 listings in Princeton Township either under contract or pending ranging from $339K to $2,995,000. Under contract means they have accepted offers and pending means they are getting ready to close. That is a healthy number and a sign of a busy spring buying season and a good time to sell.
Princeton Township Sold Homes 2011
|
Date |
Units Listed |
Listed Volume |
Listed Average |
Pended |
Units Sold |
Sold Volume |
Sold Average |
Average DOM |
|
Dec 2011 |
9 |
5,914,000 |
657,111 |
10 |
19 |
17,765,566 |
935,029 |
148 |
|
Nov 2011 |
12 |
12,852,970 |
1,071,080 |
7 |
14 |
13,615,375 |
972,526 |
121 |
|
Oct 2011 |
19 |
29,742,400 |
1,565,389 |
18 |
8 |
4,701,870 |
587,733 |
125 |
|
Sep 2011 |
27 |
30,512,368 |
1,130,087 |
14 |
18 |
19,890,800 |
1,105,044 |
91 |
|
Aug 2011 |
16 |
12,246,400 |
765,400 |
9 |
28 |
26,741,650 |
955,058 |
89 |
|
July 2011 |
19 |
14,553,900 |
765,994 |
16 |
20 |
27,159,000 |
1,357,950 |
68 |
|
June 2011 |
40 |
41,650,788 |
1,041,269 |
20 |
22 |
16,601,499 |
754,613 |
116 |
|
May 2011 |
52 |
65,343,093 |
1,256,597 |
35 |
15 |
13,484,100 |
898,940 |
72 |
|
Apr 2011 |
41 |
41,783,063 |
1,019,099 |
13 |
8 |
6,756,950 |
844,618 |
133 |
|
Mar 2011 |
51 |
68,070,088 |
1,334,707 |
22 |
14 |
12,117,000 |
865,500 |
128 |
|
Feb 2011 |
32 |
23,159,909 |
723,747 |
8 |
6 |
4,103,000 |
683,833 |
128 |
|
Jan 2011 |
20 |
24,856,387 |
1,242,819 |
6 |
8 |
6,051,000 |
756,375 |
99 |
|
Totals: |
338 |
370,685,366 |
1,096,702 |
178 |
180 |
168,987,810 |
938,821 |
106 |
|
|
|
|
|
|
|
|
|
|
|
Minimum Prices |
Maximum Prices |
Average Prices |
|
Original List Price : $200,000 |
Original List Price: $8,500,000 |
Original List Price: $1,046,663 |
|
Sold Price : $200,000 |
Sold Price: $7,750,000 |
Sold Price: $938,821 |
Click on this link to search Homes for Sale in Princeton
Click here to contact me for a market analysis of your home
Inventory Princeton Boro and Township as of April 9, 2012
The slide above shows the number of homes as of April 9, 2012 that are active or went pending in the last 30 days. Also how many are new on the market, expired, were withdrawn or closed in the last 30 days. And percentage that had a price reduction.
There were 13 homes sold in Princeton Township in March 2012. 3 were condos at an average sales price of $555,300 at 94% of original asking price, and 10 were free standing homes which sold at an average price of $704,740 at 83% of asking price.
The number of free standing homes sold in Princeton Boro in March 2012 was zero. One condo sold for $462,500 at 84% of asking price.
The summary of March sales activity in Princeton Boro and Princeton Township is below.
| Average sales price: | Percentage of Orig Sales Price | |||||||
| Princeton Twp. | ||||||||
| Free Standing Homes | $704,740 | 83% | ||||||
| Condos | $555,300 | 94% | ||||||
| Princeton Boro | ||||||||
| Free Standing Homes | None Sold | N/A | ||||||
| Condos | $462,500 | 84% | ||||||
Visit this link to see a current list of homes for sale in Princeton.
Market Scale for Supply and Demand
This chart shows the percentage of appreciation or depreciation a property will see at certain inventory levels. It shows the relationship between appreciation/depreciation and months of inventory. When there is 6 months worth of inventory on the market it is a completely even market, nether the buyer or seller are in a better position. When there is greater than 6 months of inventory on the market it is a buyers market and when there is less than 6 months worth of inventory on the market it is a sellers market.
To see the latest absorption rates click here
To search Princeton rentals click here
To search Princeton Townhomes click here
To search Princeton Single Family Homes click here
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