New Jersey Real Estate Agent

Princeton Township Real Estate Housing Prices - 2003-2008

Princeton Township Real Estate Prices - 2003-2008
This article, part of the continued Princeton Real Estate Market Reports series, examines Princeton real estate homes for sale from the perspective of the price changes in Princeton Township in 2003- 2008 (up to and including September 2008). In the previous article I looked at Princeton real estate housing demand for a persective of the trend in the number of Princeton homes sales.

The results are different for Princeton houses and Princeton condominiums and so I looked at them separately. I looked at both the average and the median prices since they could be different and even misleading.
Read: Princeton real estate prices

Interestingly, many home buyers and sellers and real estate agents do not understand the differences and what these numbers mean.

Princeton Township real estate home prices (excluding condominiums)

The median prices have decreased compared to the prior year only in 2006. The average prices have decreased inly in 2007. Median prices of houses sold in Princeton Township increased by 36% since 2003, while the average sales prices have increased 31%. In 2008 the median price has increased by 6% and the average has increased by 8%.

This is by no means an indication that if you are a home seller in Princeton you could expect your home to sell for 6-8% more compared to last year. For example, average price in Princeton Ridge, one of the Princeton neighborhoods of stately houses, has declined by 22%. You have to work with an expert who can interpret the data as it relates to your specific home.
Here are the details*.
Years    House Prices $ % Change   House Prices $ % Change
             Median                               Average
2003    650,000                               810,380
2004    665,000    2%                      865,580              7%
2005    815,000    23%                    944,240              9%
2006    770,000    -6%                  1,118,340             18%
2007    850,000    10%                   987,780              -12%
2008    900,000    6%                   1,066,020              8%
Total                    36%                                             31%

Princeton Township real estate home prices - condominiums

The Princeton Township condos median sales prices have increased 61% since 2003, and the average prices have increased 69%. Both median and average prices have declined In 2008 (up through the end of September) 18% and 8% respectively.

Here are the details*.

Years    House Prices $ % Change   House Prices $ % Change
             Median                               Average

2003    320,000                                320,000
2004    460,000                44%         460,000                   44%
2005    510,000                11%         556,170                   21%
2006    356,000               -30%         506,450                   -9%
2007    550,000                54%          611,380                  21%
2008    450,000               -18%         564,330                  -8%
Total                              61%                                       69%

*Data is based on Trend MLS ( 10/22/2008) and is not guarnteed

To understand the affect of the Princeton real estate on price of a home in Princeton please call 609- 553-4175. Not ready for a discussion yet? You could learn a lot on your own by reading:

Princeton Real Estate - Everything You Wanted To Know
Princeton New Jersey Real Estate Homes For Sale Housing Market Reports

Or click here to search for New Jersey Homes For Sale.

Princeton New Jersey Real Estate Prices

Princeton real estate home prices, as reported by national press and media, could mean very little for home sellers and buyers. The basic question/concern Princeton real estate home sellers have is what is their home worth. Could you as a home seller assume that if the average prices are down/up nationally, or in New Jersey, or in Princeton, that your home is respectively worth less/more by the same percentage? And what about the median home prices? What is difference and which is a better indicator of what is going on in the Princeton real estate market?

The simple answer is that neither of these statistics could provide a reliable indicator of the price trends. Let’s look at the reasons why.

I. Real estate is “micro local”
You can’t apply the national or even New Jersey state real estate statistics to Princeton. Even more so, the aggregate Princeton sales prices may not apply to your home. The condition of real estate varies not just from town to town, but also in different price ranges, in different Princeton neighborhoods and developments, and in single homes vs. condominiums.

II. What are Median and Average Home Sales Prices
Let’s start by looking at the difference between the median and the average prices and what it means when it comes to real estate. Many buyers and sellers ask me about this difference. Interestingly, many real estate agents ask me to explain the difference to them as well. Let’s refresh the definitions. Here is an example given by Dr. Math .

“The MEAN is the arithmetic average, the average you are probably used
to finding for a set of numbers - add up the numbers and divide by how
many there are: (80 + 90 + 90 + 100 + 85 + 90) / 6 = 89 1/6.

The MEDIAN is the number in the middle. In order to find the median,
you have to put the values in order from lowest to highest, then find
the number that is exactly in the middle:

        80   85   90   90   90   100
                     ^
     since there is an even number of values, the MEDIAN is
     between these two, or it is 90. Notice that there is
     exactly the same number of values ABOVE the median as
     BELOW it!”

For real estate this means median prices and average prices could be different. For towns, neighborhoods, and housing developments where homes are priced within a small range, these differences could be insignificant. For example, if you have 5 Princeton homes similarly priced $1,000,000; $1,100,000;$1,050,000; $1,025,000; $1,090,000 the average price is $1,053,000. Median Price would be $1,050,000 ( with two homes below this price and two homes above this price) which is very close to the average.

When the prices for homes for sale vary greatly, as is the case in Princeton and many surrounding towns, there would be a significant difference between the homes median and average sales price. For example, if you had 5 Princeton homes priced $500,000; $700,000; $1,300,000;$1,500,000; $3,000,000 -the average price is $1,400,000 and the median price is $1,300,000.

III. Problems with Princeton real estate average and median home prices
1. Median and average prices could be different, as explained above.
Median home price in Princeton Township (excluding condos) in 2006 was up 23%, while the average price was up was up only 9% compared to 2005.

2. Median and average prices could be moving in opposite directions. Princeton median home price (excluding condos) in 2006 was down 6%, while the average price was up 18% compared to 2005. In 2007 the situation reversed. The median price was up 10% and the average price down 12%.

3. How to male sense of the numbers

The only way to understand this phenomena is to know the underlying series, ie. individual transactions that went into calculating average and median. The reason the average and median prices are not reliable indi

IV. Reporting of real estate homes sales prices
1. The available data may not be meaningful.
For Princeton real estate buyers and sellers it’s important to understand what is being reported. The most meaningful way to understand real estate prices is based on the Case-Shiller index, because it tracks sales of the same properties over the years. This index is not updated as often as home sales prices, so real estate reports in the press are often based on the average and median prices, which could often be meaningless, as shown in the example above. Unfortunately, the Case-Shiller index does not cover many areas in the country and does not cover Princeton. Applying real estate trends and statistics reported by the national press, to Princeton homes for sale could produce very misleading results. Even when local statistics are available, they have to be understood on a deep level by those offering them, so they could offer approppriate guidance to the home sellers and buyers who rely on them for making decisions regarding their homes.

2.Tracking statistics on a deep level is a complicated and time consuming.

Many real estate agents simply use reports provided by MLS which are based either on median or average prices for a municipality. These prices are not enough to understand the “micro local” trends. To truly understand the trends in the Princeton real estate prices the agents need to know and understand the individual transactions that go into the aggregate statistics reported by the MLS.

V. Who is doing the reporting
1. Press and media reporting.
If the goal of the press is to generate sales for their reporting -the more dramatic the headlines, the better are the chances for the story to generate interest. If I was reporting on the condition of the Princeton real estate in 2006 I could choose either of these headlines: “Median prices are in decline after 2005 highs” or “Average home prices in Princeton rise dramatically while falling everywhere else". Both of the statements would communicate the factual data while delivering the opposite messages. This could be totally misleading for the general public and to the agents who do not do independent research.

2. Real estate agents’ reporting
If the real estate agents’ motivation is to sell homes, the statistics could be used to further this goal. While the agents are supposed to provide factual data, the example above shows how easy it would be to spin the story based on one’s motivation.

To discuss the affect of the Princeton real estate market on the value of your home, please call 609-553-4175. Not ready to discuss your plans with a real estate agent yet? You could learn a lot on your own, by reading:

Princeton Real Estate - Everything You Wanted To Know
Princeton New Jersey Real Estate Homes For Sale Housing Market Reports

Or click here to search for New Jersey Homes For Sale.

Princeton Township Real Estate Sales -2003-2008

Princeton Township Homes Sold 2003-2008

This article, part of a continual series on Princeton real estate housing, examines the Princeton real estate from the perspective of the number of homes for sale sold in Princeton Township from 2003 to 2008. The number of homes sold is an important statistics as an indication of the demand for Princeton real estate. I looked at the home prices in various price ranges over $700,000 and the total number of homes sold in Princeton during the last 5 years.

Summary

The 2008 drop in demand has been seen in all price ranges (except over $3 million dollar price range, which dropped earlier in 2005 and has remained the same since).The highest total number of homes sold was in 2004. As the signs of the weakening market appeared in 2006, the numbers dropped by 29%. After a bit of recovery in 2007, the number of homes sold dropped again in 2008, so far by 27%. The changes in the demand for houses was not the same in all price categories. In 2007 the decline from the previous year was only evident in the top of the luxury price range. Number of homes sold in the $2 million - $3 million price range drooped by 46%. The decline in the price $3+ million price range occurred earlier in 2005, and has not changed since: one property per year has been sold in this price range.

Number of Homes Sold By Price Range 2003-2008

Years    $700K -$1,000K    % Change    $1mln- $2.mln    % Change    $2mln - $3mln    % Change    $3mln+     Total *    % Change
2003    36          41       4       3         195
2004    59                       64%            44                7%               9              125%          3         244        25%
2005    65                       10%            63               43%             10               11%          1         237        -3%
2006    41                      -37%            48              -24%             13               30%          1         176       -26%
2007    51                       24%            63               31%              7               -46%          1         186         6%
2008    42                      -18%            49      -22%              6               -14%          1         136       -27%

If you would like understand what is happenning in Princeton real estate, please read:

Princeton Real Estate - Everything You Wanted To Know

Princeton New Jersey Real Estate Homes For Sale Housing Market Reports

To discuss if now is the right time to buy or sell your home in Princeton area, please call 609-553-4175 -New Jersey Real estate agent, specializing in the greater Princeton area real estate.

Not ready for a personal discussion yet? You could search for New Jersey homes for sale on your own, just click on the link below.
Princeton Home Search

Princeton New Jersey - Halloween And Other Things To Do

Princeton New Jersey is known nationally for a its university town ambiance and a variety of cultural and outdoor recreational opportunities. Many of my clients who bought homes in the Princeton area find this to be one of the big attractions and benefits of Princeton as a place to live. Here is a small sample of what is happening in the area for Halloween.

Annual Hometown Halloween Parade - Organized by the Arts Council Of Princeton
102 Witherspoon Street
Princeton, NJ, 08542
609-924-8777
http://www.artscouncilofprinceton.org/

Spooky Saturday - Arts Counsil Of Princeton

Princeton University Art Museum
Saturday, October 25, 2-4
Sign up early, as spaces fill up fast.

Corner of Chaos Haunted Maze
299 Princeton-Hightstown Road
East Windsor, NJ, 08520
609-426-8884
http://www.cornerofchaos.com/

There are a number of haunted houses and other events if you are willing to travel a bit further. Click here for a list.
If you are not a fan of Halloween action, you could always find something interesting happening at the Princeton Library. Fro example, yesterday I saw a great Italian movie Sedotta e Abbandonata (Seduced and Abandoned). Director Pietro Germi, not as known as Fellini, made this movie in the 60’s and it is still funny and is a wonderful work of satirical farce and tongue-in-cheek humor. After the movie there was an opportunity to have an Italian dinner at Midetera, where the wines were selected to match the theme of the movie.

Hopewell New Jersey Real Estate - Luxury Homes For Sale Prices And Sales 2003- 2008

Luxury New Jersey real estate in Hopewell is very much of interest to my clients and readers who live there or are considering purchasing a home in the Hopewell Borough and Hopewell Township. This article provides details on the condition of the Hopewell real estate for houses sold in Hopewell in the price range of $1.5 million - $2 million. If you are considering selling your luxury home in Hopewell understanding this information could help you make intelligent and informed decisions.

Luxury Hopewell Real Estate - Summary

My the recent article “Hopewell luxury real estate 2003- 2008″ provided a summary of what happened to the the market in the $1.5million - $2million price range. “The largest number of Hopewell homes sold in the $1.5 -$2.5 million range, was in 2005. So far in 2008 there were 3 homes sold in this price range and only 1 of then was over $2 million. The biggest decline is in the $1,700,000 - $1,999,999 price range with no houses sold in 2008 compared to 4 houses sold in 2007 and 2006. At the top of the range- $2.Million- $2.5 Million there was 1 house sold in Hopewell in each of the last three years.”

This article examines in detail the history of the price declines of luxury real estate in Hopewell over the last 5 years and provides the breakdown for the number of houses sold in various luxury price ranges.*

Luxury Hopewell Real Estate - Price History 2003-2008

The unfortunate news is that the prices for luxury Hopewell homes for sale have declined approximately 26% since the high in 2004. Here are the details for the prices of luxury homes sold in Hopewell ($1.5mm-$2.5mm).

Year    Median Price     % Change        Houses Sold

2003    1,847,500                                    6
2004    2,100,000            14%               5
2005    1,995,000            -5%                 9
2006    1,870,399            -6%                 6
2007    1,772,500            -5%                 6
2008    1,550,000            -13%               3

Luxury Hopewell Real Estate - Number Of Houses Sold
The biggest decline in the number of houses sold was in the price range of $2 million - $2.5 million -with only one house sold a year in the last three years, compared to 4 in 2004. Here are the details of the number of luxury houses sold in Hopewell broken down by price range.

Year    $1.5mm - $1.699mm $1.7mm - $1.999mm     $2mm - $2.5mm
2003        2                                         3                                   1
2004        1                                         1                                   3
2005        2                                         3                                   4
2006        1           4                                   1
2007        1                                         4                                   1
2008        2                                         -                                    1

Hopewell Luxury Homes For Sale - Conclusion
If you are seller considering selling your home in this market in Hopewell you have to be prepared to face the hard truth - this is a slow market. I work with clients to understand their situation and give them facts to decide if this is the right time to sell for them. Be cautions of people saying “now is the right time to sell". There is no one answer that fits all, but understanding reality is critical for everyone.
What is especially important for prospective home sellers is to understand why the homes that were on the market didn’t sell. For those who have to sell this history could be the key to success.

Call me 609-553-4175 or e-mail fsechzer@yahoo.com if you would like to receive the details on the unsold properties, have questions about this article or would like to understand what is the best course for you now.

P.S. As a follow up to this article I was asked if the decline in Hopewell homes sales in the $2million- $2.5 million price range is due to fewer house being on the market or lack of buyers. Here are the statistics to help answer this question:

2005 -Homes Listed- 7 Homes Sold - 4

2006 Homes Listed - 7 Homes Sold - 1

2007 Homes Listed -8 Homes Sold - 1

2008 Homes Listed -3 Homes Sold - 1

After 2005, the number of luxury homes sold in Hopewell has declined, even though the number of the houses listed remained the same. By 2008 the number of homes listed has declined as well. This could be the response of the home sellers of the sellers who do not think they could sell in this market.

To check what Hopewell homes for sale are on the market now (in the MLS), click on the link below:

Luxury Hopewell Homes For Sale -$1,500,000 - $2,500,000 - Princeton Area Luxury Real Estate

* Data is based on Trend MLS 09/28/2008 is considered accurate but not guaranteed.