Princeton NJ – President Obama’s, TARP and Bailout Plans – Effect on Princeton Homes For Sale

Could TARP and the plans proposed by the president Obama and the Congress effect Princeton Homes For Sale?
President Obama’s plans could help Princeton homes for sale; TARP has already had impact on the Princeton real estate including first-time homes buyersPrinceton home sellers and many homeowners
Princeton real estate homes for sale remained relatively immune to the devastating affects of the economy meltdown with median prices of Princeton homes for sale up and the foreclosures levels are relatively low. This may not continue if further fiscal interventions are not made.

The conditions in Princeton and neighboring towns of Hopewell homes for sale, or for Montgomery Township real estate, where the median prices have already declined.

Even with the median prices of Princeton real estate being up, many homeowners who bought their Princeton homes in the last several years and had to sell now, did so for prices equal or less to what they paid.

This week I discussed with a Princeton economist the impact on the Princeton homes for sale of the President Obama’s plans and the Proposals in the Senate. These ideas would apply to Hopewell real estate and to homes for sale in Montgomery Township. Here are the highlights of this discussion along with my interpretations:

  • Many residents of Princeton, Hopewell, West Windsor and Montgomery Township are employed in the financial and related businesses in New York. That’s why Princeton is a great place for people relocating and moving from other areas. It is also why stabilizing financial institutions has critical impact on the Princeton real estate.
  • TARP has already helped by infusing money into financial institutions and preventing many local residents from loosing their jobs.
  • Had the financial sector on New York been not helped by TARP, Princeton would have not been the relative oasis of housing stability compared to other areas in the country. Employees in the financial sector loosing employment would drive up the foreclosures which so far have been few in the area.
  • Various assistance parts of the bailout provisions could help first time Princeton home buyers and as well as many homeowners.
  • The Federal program to buy mortgages to drive the mortgage rates to the 4.5% could help first time buyers to be able to afford Princeton homes for sale. It could also help those who’s income has been effected by the pay cuts to refinance and hold on to their homes, preventing rise in foreclosures and further declines in the real estate prices.
  • The plan to use TARP to establish a special bank to buy toxic assets would shore up the banks’ balance sheets so they could start lending. Available credit could help both first time Princeton home buyers and those who need to refinance.
  • Senate’s idea discussed now to offer 4% fixed 30 year mortgage rates could provide a big boost to Princeton home buyers. As proposed, it would reward those who have good credit history and saved for the down payment on their home in Princeton, Hopewell or Montgomery Township.
  • Princeton is not an inexpensive choice for many home buyers. Lowering the mortgage interest rates and the idea of $7500 to $15,000 credit for first time home buyers could make more buyers to come able to afford Princeton homes for sale.
  • Assisting first time home buyers could do a lot for the whole spectrum of Princeton homes for sale. When first time home buyers come into the market it has a trickle up affect and triggers more transactions in the higher price ranges.

Thinking of buying or selling your house In Princeton NJ area –  We can help
If you are considering buying or selling a home in the Princeton NJ Hopewell Princeton Junction Montgomery  area

Princeton NJ Luxury Real Estate Market Overview 2008

Princeton NJ Luxury Homes For Sale Overview of Real Estate Market In 2008

How’s Princeton NJ real estate? The answer depends on your specific part of the Princeton real estate marketPrinceton luxury homes for sale over $2,000,000 are not doing as well as the overall Princeton real estate market. Interestingly the conditions are different for Princeton Township and Princeton Borough. In the Princeton Borough four times as many homes were sold in this price range in 2008 then in 2007.

Princeton Township Luxury Homes For Sale

This is a relatively small market segment, representing less then 10% of all the Princeton homes for sale listed in 2008.

  • There is an interesting difference between the luxury homes and the market in general.
  • Of the Princeton homes for sale listed over $2,000,000 only 21% sold, compared to 53% for the overall market. Luxury Princeton homes took 190 days to get under contract, almost twice as long as for all Princeton homes for sale.
  • Homes over $3,000,000 have not fared well in terms of the numbers sold. Only one of them sold (out of 16 listed) and none sold over $4,000,000. The same number sold in 2007, but the number of listed homes then was only 6.
  • When the supply greatly outweighs the demand it creates downward pressure on the sale prices.

Princeton Borough Luxury Homes For Sale

The Princeton Borough luxury homes are doing better then in the homes in this market segment in the Princeton Township.

  • 40% of the 20 Princeton Borough homes listed over $2,000,000 sold.
  • The category of homes sold over $3,000,000 was most popular.  Of the 5 houses listed 4 sold, almost twice as many as in 2007.
  • Princeton homes for sale, especially in the Borough continue to generate home buyer demand.

The Bottom Line

  • The conditions for the luxury Princeton real estate are different for the Princeton Borough and the Princeton Township.
  • In the Township and the Borough the supply outweighs the demand with more homes being listed then in 2007, which could bring further downward pressure on the prices.

The good news is that the Princeton Borough continues to be attractive for the luxury home buyers, resulting in 4 times the number of sales as in 2007.

Here are all

Princeton luxury homes for sale over $2,000,000

Princeton Township Real Estate Tax Revaluation

If you are Princeton real estate home buyer you may want to know about the upcoming tax assessment. Thinking of selling your Princeton property?  You may want to think about the implications of this on you sale. If live in Princeton Township you most likely know already that the tax assessments will take place in 2010.

The first step in the revaluation would be the inspection by Appraisal Systems, a company hired by the Princeton Township. The Appraisal Systems will visit each Princeton Twp. property and conduct an exterior and interior inspection.

According to the Princeton Township they will measure the exterior and all improvements and photograph the front and rear of buildings.

The interior inspection would be conducted either on the first visit, or if no one is home at a subsequent date. Princeton township says to “not allow anyone to enter your home without proper identification”.

If you as a Princeton Township homeowner consider your Princeton property to have a “unique condition that influences value” , you could send documentation to  Appraisal Systems Inc,. * Catano Avenue, Morristown, NJ 07960.

Because of the declining home values for some Princeton homes for sale, you could benefit  from having a sense of your property market value (which is not the same as appraised value) before the appraisal. The market value information I provided helped some homeowners to reduce their property tax.

Princeton NJ Real Estate Market Report

Princeton NJ Townhouses and Condominiums Market Report

Princeton NJ Townhouses and Condos Market Report 2004- 2008

Princeton Real Estate Homes blog is a resource for Princeton condos and townhouse home buyers and sellers in Princeton NJ.  We publish regular reports on the condition of the Princeton NJ real estate.

Read: Princeton Real Estate Market Report 2004-2008

This report offers results for the Princeton condominiums homes for sale  sold  in 2004-2008. Here are the key points resulting from our analysis.

Princeton Township Condos For Sale

1. Median prices for Princeton condos in 2008 was $450,000 -decline of 18% compared to 2007.

2. The decline in 2008 is second largest decrease in the last five years. The largest decrease was in 2006, when the median price fell 30%.

3. Median prices have decreased in three years out of the last five.

4. Largest increase in the median price has occurred in 2007, when the median price increased 54%, following the dramatic decline in 2006.

5. In the last five years the median price has decreased 2%.

Princeton Borough Condos For Sale

1. Median price in 2008 was $560,000 and has increased 15% compared to the previous year.

2. Median prices have declined only once in the last five years. It happened in 2006, when the price dropped 17%.

3. Price decline in 2006 is understandable, given the high increases of 49%  in 2005.

4. Princeton Boro condos had a 60% cumulative increase in median prices in the last five years.

Looking  to buy a townhouse or condo in Princeton? Here are the Princeton townhouses and condos for sale available in the MLS now.

Princeton NJ Homes For Sale – Strategies For Sellers

To Sell Princeton Homes – Sellers need to understand Buyers

If  you planning to sell your Princeton home, you need to understand home buyers profile or, in other words, how home buyers behave and their mind set when they are looking to buy a home in the Princeton area.  This is the basic concept for marketing any product and it applies to home selling as well.  If you as a Princeton home seller understand the behavior of the buyers’ you could tune your marketing to meet the buyers’ way of thinking. Unfortunately many home sellers in and around Princeton don’t have the information to understand the how home buyers look for their new homes.

New Jersey Buyers’ Profile

National Association of Realtors has just released the Buyer and Seller profile report for New Jersey. This report has some interesting things about the buyers Princeton home sellers should keep in mind.

  • 89% of home buyers used Internet to search for homes;
  • 89% used a real estate professional during the search
  • 42% of home buyers first learned about the home they purchased from a real estate professional;  30% learned form the Internet.
  • 50% of the buyers used social networking sites such as FaceBook and MySpace during their search.
  • Typical Internet searcher was 35 years old and visited a median 15 homes.
  • Typical non-Internet home buyer was 52 years old and saw a median 7 homes.
  • The typical home buyer searched for a home for a median 12 weeks.

Sellers’ Marketing Strategies

It is easy to see that Internet is one of the most important tools the buyers use in their search. This means you as a seller have to have the kind of Internet presence that beats ll the other competing Princeton homes for sale.

  • Being on the is just simply not enough.
  • There are a lot of young buyers which means your marketing strategy has to be targeting this demographic.
  • Your marketing plan has to include exposure to the social networking sites.
  • Buyers expect to find their dream home within 12 weeks, which leaves only a short window of opportunity to impress them before a competing property does.

New Jersey Real Estate Buyers’ Profile

Princeton Real Estate blog primarily focuses on the local real estate markets in and around Princeton NJ because real estate is super local and there isn’t much published to help Princeton NJ real estate buyers. What is reported on a national and state levels usually has little relevance to what’s going on in Princeton real estate, but may provide an interesting inside for Princeton real estate buyers and sellers.

I follow these reports to understand if and how they could effect out local Princeton real estate markets and ways in which our market is different. National Association of Realtors has released it’s annual profile of home buyers and sellers which has some interesting information.

They site Interesting statistics regarding the timing of the purchase.

  • 46% reported it was the right time for them to buy
  • 18% reported they had to purchase when they did
  • 22% reported buying because of affordability and availability of homes for sale
  • Only 4% stated they wished they had waited to buy.

These numbers most likely confirm the psychology of the buyer
s – those who bought would be unlikely to say it was the wrong decision. More interestingly would have been to know, what percentage of the home buyers who were in the market ended up buying. But these statistics are not in the report.

Another interesting point demonstrates the changing mind set of the buyers
. 50% of the buyers used social networking sites such as MYSpace, Facebook and others in their search. Among the younger buyers age 18 to 14, 38% used these sites daily, or nearly daily.

Here are a few other highlights from the report:

  • The median 2007 household income of home buyers in New Jersey was $90,000, compared to $74,900 nationally.
  • First -time home buyers accounted for 49% of recent home purchases.
  • 65% of the first time home buyers were between  25 and 34 years old.
  • The median price o homes purchased was $306,000 compared to $204, nationally.
  • Typical buyer purchase a home that was 1,740 square feet in size.

These numbers are probably different for Princeton area real estate because our median prices are much higher which lowers affordability for many first time home buyers. I don’t have the exact numbers, but I see certain similarities – many young buyers with a different approach to finding their home.

Princeton NJ Townhouses And Condominiums Guide

Princeton Townhouses And Condos Homes For Sale -2009

Princeton NJ is an attractive choice for many home buyers because it offers not only single family homes but also a wide choice of condos and townhouses. Princeton townhouses could be found in many neighborhoods and many price ranges.

The first time home buyers often seek these Princeton NJ homes for sale, because they represent the entry point for real estate in Princeton.  There are other buyers who are interested in these homes because they are looking to minimize home maintenance, or because they are downsizing.

There are luxury townhouses such as in Governor’s Lane, with prices in the over $700,000 range. Homes in Princeton Ridge on the Stonewall Circle present an interesting option because of their design- they are semi-attached, not multiply attached as the townhouses usually are. They sell in the $700,000 -$800,000 range. Buyers could also find Princeton condos and townhouses for sale in the mid-range of over $500,000, for example in neighborhoods such as Campbell Woods. There are many other possible neighborhoods, such as Washington Oaks, Queenston Common in the Princeton Borough and Fieldwood Manors development in Princeton Township.

There are several such Princeton townhouses and condos for sale available in the MLS.

See the live feed od all Pinceton MLS listings for

Princeton NJ Townhouses and Condos

20 Bogart Court, Princeton, New Jersey, 08540

20 Bogart Court, Princeton NJ 08540 – Luxury New Jersey Princeton Homes For Sale

Sorry, this property has been sold.

Princeton, New Jersey is a town known world wide for it’s long and significant history and it’s acclaimed present. It is a vibrant community that attracts discriminating international and domestic luxury home buyers.

20 Bogart Court, Princeton NJ is one home that should be on every luxury home buyer’s must see list.

Located on the picturesque 6.5 acres this estate Princeton home was built by the present owners to be their dream home. Now is a chance for another family to make it their dream home.

There is nothing this house lacks for easy and gracious living. From the dramatic foyer to the gourmet kitchen, to lavish bath for each of the 5 bedrooms, to the conservatory and the view to the natural beauty outside – this home offers it all in high class.

The lower level can be best described as “unbelievable”. The movie theater, the gym, the billiard room and an incredible second kitchen would make you never want to go upstairs.

Princeton home of this stature makes it easy to entertain guests. Those who are compelled to stay, from party guests to visiting relatives, could do so in a style possible only in a five star hotel. A separate guest apartment is located near the main house and features the same high-end amenities as the main house.

Good stories are best told in pictures and bellow are some of the highlights of this distinguished Princeton estate home for sale. This home is located in the neighborhood of other stately homes -you can see the location on the map below.

This Princeton home is offered at $3,675,000. We speak many languages and work with international buyers.

Princeton NJ luxury homes for sale in this price range.

Princeton Real Estate In The New York Times

If you like reading New York Times, read today’s Sunday edition article Battling for Bidding Wars. Here is a

shameless plug – I am in it:) I mean some the information from the hour long interview is there.

I received a call form the New York Times last week. They wanted to get my opinion on multiple offers in the buyers market.  They called me because of the articles I wrote on the Princeton Real Estate blog.

Back in late summer I wrote a post on Multiple offers in the buyers market, describing why such a phenomena was possible in Princeton. Fast forward to the New York Times call.  The time is now post  September 2008 market crash and it was an interesting question for them to revisit.

I was on my way to meet with people at the national real estate bloggers conference in NYC, so I couldn’t talk with the reporter for long. We agreed to pick up the conversation the next day. I spend a few hours researching the topic to come up with a broader view then just my personal experience with multiple offers. I found a few interesting things which are described in this follow up post Multiple offers in buyers market now.

Interestingly enough, awhile back I wrote an article “ Who else wants to be in the New York Times” to bring attention to real estate blogs as a way for the press to learn what’s really going on in the local real estate from people who practice it every day. I never thought the NYT would call me:)

I am energized to continue covering local real Princeton real estate to educate real estate buyers and sellers, and perhaps press. My 2 second of fame feels good:)

Princeton NJ Homes For Sale – Buyers Market And Multiple Offers

Princeton NJ Homes for sale are the main focus of this blog. NJ, Princeton real estate sellers and buyers often ask if multiple offers happen in the Buyers market. The answer is “yes” and this article looks at the reason why.

Back at the end of the summer 2008, I wrote an article “Princeton Buyers Market and Multiple Offers” about

princeton houses multiple-offers

Princeton houses multiple offers

multiple offers happening at that time. Last week New York Times reporter Antoinette Martin to ask if this is still the case. My answer was that it is still possible -some Princeton properties for sale still have multiple offers. I wanted to to take a broader look at the issue, not limited to my experience only.  I examined all the home sales in Princeton New Jersey in the last 6 months to see how many Princeton NJ homes sold over asking price. Princeton property sale over asking price is usually a good indication of several buyers competing for the specific Princeton house.

This is what I found.

1. In the period of June – September 2008 out of 103 Princeton houses sold, 18 (17%) were sold over the asking price. Thirteen houses out of these 18 – were sold for less then $1,000,000.

2. In the period September -December 2008 the situation changed. There were only 51 houses sold in NJ Princeton. Of them 2 (4%) were sold over asking price.

3. There were homes that sold over asking price multiple times. What made these homes special? I found several common threads:

– desirable location combined with amenities, such as 134 Moore Street, and 229 Moore Street, NJ Princeton.

– pricing the homes at the pre- 2005 prices.

4. The increase over asking price for many of these Princeton homes was nominal. The ones that had significant increases had either superior location, such 21 Vernon Circle, NJ Princeton or had lowered the price to the level that attracted multiple buyers.

5. Multiple resales. Five Princeton houses sold over asking price were sold in the last 5 years. Three out of these five, were priced below the sale price in 2005 and 2006.

6. Of the Princeton houses sold over asking price only 2 lowered the price after the initial listing price. This is very important information for home sellers in NJ Princeton. If the home is priced right from the beginning it could attract multiple offers even in the weak market.

7. The situation was different for Montgomery Township homes for sale. During the period June -December 2008 there were 132 homes sold in Montgomery Township. Only 8 (6%) were sold over the asking price.

8. For Hopewell homes for sale there were 103 sold during this period, with four (5%) over the asking price.

Data is based on TREND MLS -1/8/2009 considered accurate, but is not guaranteed.