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I am working with first time home buyers who are considering making an offer on a townhouse in Society Hill, Basking Ridge. So I spent this evening working on a market analysis to determine if the list price on the unit they like is within the boundaries of reality. The unit has been on the market for quite some time and is not in the best condition. The agent shared with me the seller’s bottom line. Knowing that certainly helped – and I actually think that their bottom line reflects a nice deal, even with the elbow grease that the unit needs.
I had to go back beyond 12 months to find another sale to compare to the large three bedroom unit that is on the market on Baldwin Court; but for the two bedroom units there was a lot to go by – that seems to be the most popular model recently. Most likely because they account for a larger percentage of the types of units and since they are small, the turn over more frequently. Interestingly enough – there have been three sales in the last 30 days of the two bedroom model - that leaves only my listing and one other still available, could my clients be the next lucky sellers?
I thought I would share the Society Hill Market Analysis that I put together – please let me know if you have any questions. I am happy to send you information about other properties available here in town, or click here to search available town houses in Basking Ridge. (Please forgive my spacing issues – my webmaster is on vacation!!)
|
Sts |
Address |
Bed |
Style |
List Date |
LP/SP |
DOM |
UC Date |
|
|
A |
261 |
PENNS WAY |
3 |
Interior/back kitchen |
7/29/2009 |
$325,000 |
6 |
|
|
A |
6 |
BALDWIN CT* |
3 |
Interior/sunroom |
4/1/2009 |
$344,900 |
125 |
|
|
A |
406 |
Penns Way |
3 |
Interior/sunroom |
3/23/2009 |
$365,900 |
134 |
|
|
A |
309 |
ENGLISH PL |
2 |
Interior |
7/6/2009 |
$289,000 |
29 |
|
|
A |
287 |
PENNS WAY* |
2 |
End Unit |
9/18/2008 |
$298,900 |
320 |
|
|
A |
37 |
WOODWARD LN* |
2 |
Interior |
7/6/2009 |
$304,900 |
29 |
|
|
|
|
|
|
|
|
|
|
|
|
UC |
191 |
IRVING PL* |
2 |
End Unit |
5/2/2009 |
$305,000 |
93 |
8/3/2009 |
|
UC |
430 |
PENNS WAY |
2 |
Interior |
4/25/2009 |
$290,000 |
76 |
7/10/2009 |
|
UC |
286 |
PENNS WAY* |
2 |
Interior |
5/7/2009 |
$299,900 |
81 |
7/27/2009 |
|
UC |
269 |
Penns Way |
2 |
Interior |
5/13/2009 |
$295,000 |
36 |
6/18/2009 |
|
|
|
|
|
|
|
|
|
|
|
S |
444 |
Penns Way |
3 |
Interior |
2/9/2009 |
$340,000 |
87 |
5/7/2009 |
|
S |
192 |
IRVING PL* |
2 |
Interior |
3/15/2009 |
$285,000 |
23 |
4/7/2009 |
|
S |
195 |
Irving Place |
2 |
Interior |
2/27/2009 |
$280,000 |
18 |
3/17/2009 |
|
S |
355 |
PENNS WAY* |
2 |
Interior |
2/3/2009 |
$242,000 |
31 |
3/6/2009 |
|
S |
62 |
Woodward Lane |
2 |
Interior |
6/14/2008 |
$270,000 |
249 |
2/18/2009 |
|
S |
392 |
PENNS WAY* |
2 |
Interior/sunroom |
7/21/2008 |
$300,000 |
184 |
1/21/2009 |
|
S |
64 |
WOODWARD LN* |
2 |
End Unit/sunroom |
7/28/2008 |
$330,000 |
22 |
8/19/2008 |
|
S |
295 |
PENNS WAY* |
2 |
End Unit |
6/5/2008 |
$300,000 |
42 |
7/17/2008 |
|
S |
158 |
WOODWARD LN* |
2 |
Interior |
3/6/2008 |
$275,000 |
127 |
7/11/2008 |
Remember, these units make great first homes! Take advantage of the first time home buyer credit if you qualify – time runs out at the end of November!
The market in Basking Ridge is currently at an inventory level of 7 months (246 available properties, 35 sales in the last 30 days). This is a very healthy market – especially given the negative press that the real estate market is getting!
There have been 10 sales in Basking Ridge so far in July – at various price points as follows:
- under $300,000: 4 sales
- $300,000 and $500,000: 1 sale
- $500,000 and $800,000: 2 sales
- $800,000 and $1,000,000: 1 sale
- over $1,000,000: 2 sales
Breakdown of absorption rate by price range:
- under $300,000 there are 33 available properties, 8 sales in the last 30 days, absorption rate: 4.1
- $300,000-$500,000 there are 49 available properties, 5 sales in the last 30 days, absorption rate: 9.8
- $500,000 and $800,000 there are 81 available properties, 8 sales in the last 30 days, absorption rate: 10.1
- $800,000 and $1,000,000 there are 24 available properties, 3 sales in the last 30 days, absorption rate: 8
- over $1,000,000 there are 61 available properties, 11 sales in the last 30 days, absorption rate: 10.1
Weichert has been studying market conditions for more than three decades and has found a direct correlation btween market absorption and property values. As absorption rates increase over the normal rate of 5-6 months, property values decline annually. I emphasize annually because as I have mentioned before, looking at absorption rates too frequently is like getting on the scale every day when you are trying to lose weight! They tend to fluctuate regularly, so it is important to look at them as they trend in one direction or the other. Compare today’s absorption rate to the last time I reported it in June. The theme I continue to notice is that the rates are decreasing in the lower price ranges first! I believe that the real estate market recovery will be a bottom up trend driven by the first time home buyer. Once again, fueled by the first time home buyer tax credit!
Are you interested in what is available in Basking Ridge – or any of the surrounding areas? You can search for listings on my website. As always: no obligation, just information!
This 326-acre complex is bordered by over 100 acres of undisturbed open space. Spring Ridge is a community is comprised mostly of two and three bedroom condos, but there are a handful of duplexes as well as single family homes. The condo buildings are typically three stories – ground, first and
second floor units. The ground floor units are the one bedroom models and these don’t typically feature basement storage though they do have a large pantry in the kitchen. The second floor units often feature cathedral ceilings and sometimes have sky lights. There are at least eight different models:
- The Ardsley (one bedroom, one bath)
- The Baxter (one large bedroom, one bath)
- The Chesterfield (one bedroom, a den and one bath). The one bedroom units are listing and selling between $199,000 and $250,000.
- The Drexel I and the Drexel II (two floor plans, both featuring two bedrooms and one bath). The Drexel models are listing and selling between $200,000 and $270,000.
- The Essex I and the Essex II (two floor plans, both featuring two bedrooms and two baths). The Essex models are listing and selling between $240,000 and $290,000.
- The Fairfax (two bedrooms, a den and two baths). These models are listing and selling between $320,000 and $325,000.
- The Greenbriar (1/2 duplex with three bedrooms including a first floor master, attached garage and a basement) The duplexes are listing and selling between $450,000 and $550,000 and they rent for approximately $2500/month.
- The Hamilton (1/2 duplex with three bedrooms including a first floor master, attached garage and a basement)
- Single family homes (Three bedrooms, two and a half baths, one car garage and basements – very similar to he 1/2 duplexes, but are detached, fee simple homes) These homes are listing and selling in the low to mid $500,000′s)
The kitchens in most of the models are a decent size and all are considered to be eat-in. All but a few of the models boast a large basement storage area as well as a detached garage.
This Basking Ridge community features a swimming pool, a club house, tennis courts and a playground. There are no dogs allowed in the complex. Believe it or not, even in today’s real estate market, we are seeing multiple offers in this development. Prices (and sellers’ expectations) have already adjusted!
Search the townhouse market on my website, or keep up to date with notification of new listings. Check back regularly to see what has sold in Basking Ridge. This development offers a perfect opportunity for buyers who are eligible for the first time home buyer tax credit!
Please call me for more information on this new Basking Ridge town house listing in Society Hill:
309 English Place
This home will be hosted open this weekend on Sunday from 1:00-5:00. The first time home buyer tax credit expires on November 30, 2009; there is plenty of time to purchase this town house and still qualify for the credit! Contact me for more information!
More photos – check out the updates!!
One of the primary reasons that I work for Weichert, Realtors is that I believe that Jim Weichert is a very smart man. I love that there are only two levels of management between my broker and Jim; I have found that when Jim predicts the market, he is never wrong! He is 100% involved in what is going on – in the market, in our regions, and to some degree at the local level. For more information on what is going on in Basking Ridge in particular, please visit www.Basking-Ridge-Real-Estate.com; for a prediction of what’s to come for the real estate market in general, read on – a promising article from Jim Weichert.
The following press release was distributed today on behalf of Jim Weichert, who expresses his conviction that the housing market is in recovery mode:
HOUSING RECOVERY UNDER WAY ACCORDING TO INDUSTRY PIONEER
Weichert, Realtors president and founder sees increases in sales and Web traffic as evidence of a stabilizing housing market
MORRIS PLAINS, N.J., July 1, 2009 — For the past few months, economists have been studying facts and figures to determine when the struggling real estate market will finally begin to recover. Based on his review of the current market, and in particular, the leads and sales figures for his company in June, Weichert, Realtors president and founder James M. Weichert is convinced the housing sector has entered the recovery mode.
“Each week, additional signs emerge that point to a stronger housing market. Our recent company performance is particularly encouraging,” said Weichert in an internal message to his company’s 18,000 sales associates. “I am optimistic that we have seen the worst. From here on out, we are in recovery mode.”
Weichert reported that June was the company’s best month in terms of revenue units in 22 months. In the month of June, Weichert.com also attracted more than 1.5 million unique visitors, its highest total ever. The previous high was set in August of 2005. The Top 25 real estate Web site also saw its highest daily average of visits in June, generating more than 116,000 visits per day.
The company also reported that the average attendance at its open houses was up more than 18 percent in June from the previous year. In fact, average attendance has been outpacing the previous year every week since the beginning of May.
“The strong increase in sales we saw in June is a positive sign that the market is moving in the right direction. More importantly, the interest that we are seeing at our open houses, through our Web site and in our sales offices tells me the pipeline is there for a slow but steady recovery,” added Weichert.
While Weichert has a positive outlook, he still believes additional measures are needed to ensure a return to a healthy and balanced real estate market.
Said Weichert, “Right now, the market is being fueled by an increase in sales of popularly priced homes as a result of the tax credit for first-time buyers. But to keep the housing recovery going and to also stimulate the overall economy, I still believe the best approach is for the government to take similar action to get the repeat buyer market moving again.”
Last week, Weichert released the results of a survey of more than 500 visitors to Weichert.com that found that expanding the current $8,000 tax credit to repeat buyers would provide additional motivation to buy for 80 percent of current homeowners. If the tax credit was increased to $15,000, as proposed in one bill, the number of existing homeowners motivated to buy would grow to 94 percent.
June, 2009 sales summary will be posted soon on the home page over at www.Basking-Ridge-Real-Estate.com.
In looking at closed sales in Basking Ridge for the month of June there are several remarkable points to make. We heard this morning that this past June was the best month for Weichert, Realtors in the last 22 months – that’s pretty incredible. In Basking Ridge, we can definitely see that the number of closed sales was way up from May (25 in May, 36 in June); however, in June of 2008, there were 52 sales in Basking Ridge compared to only 36 this year – that is a significant difference, and I’m surprised to see that last June was stronger than this June for Basking Ridge. Interestingly enough – and not surprising, is the fact that the average sale price as significantly lower than it was during this month last year, $638k this year (based on 36 sales) and $750k last year (based on 52 sales).
The segment of the market that remained the same is in The Hills – there were 14 closed sales in The Hills this past month and 15 this time last year. Where I do see a significant increase in the number of sales is of single family homes NOT in The Hills – last year this time saw only 15 sales of homes not in The Hills, while there were 25 closed sales last month of single family homes that are not in The Hills.
Given the current economic climate and the national attention that has been focused on the real estate market, I think it is more notable to comment on the difference between last month and this month, instead of the difference between last year and this year for a single month. Please check out my July 2nd blog entry for Jim Weichert’s perspective on the recovery of the housing market.
This month has seen much press about the $8,000 tax credit for first time home buyers – you are actually eligible if you have not had an ownership interest in any property in the last three years! An improvement to this credit has been proposed: stay tuned for information on whether the credit will be increased to $15,000 and the income limits removed. Now THAT would be exciting!!
Contact me for more information on what’s going on in the Basking Ridge Real Estate Market!
Join me at my office for a terrific seminar! Have an opportunity to meet my broker, a mortgage rep and a real estate attorney. Remember, as always: No Obligation, Just Information!
Homeownership has many advantages, including tax benefits and the ability to build equity. And now, current market conditions make purchasing a home an even more attractive option than ever before.
In fact, a report earlier this month showed that the National Association of Realtors’ Housing Affordability Index rose in April to the second highest monthly reading on record. That means homes are more affordable now than at almost any other time. What’s more, the limited-time $8,000 first-time buyer tax credit makes purchasing a home an even better deal.
Those considering a move from renter to homeowner should keep these factors in mind:
- Length of ownership: How long do you plan to own your new home? Because of the costs associated with a home purchase, buying now could be a great choice if you plan to own the home for at least five years.
- Cost: How much should you spend? Contact a mortgage professional to find out your price range, and then crunch the numbers so you don’t buy a home that is more than you can afford.
- Quality of life: In addition to greater median wealth compared to renters with comparable incomes, research shows that homeowners have better physical and psychological health, as well as higher life satisfaction and self esteem.
Are you ready to start looking at listings? I can send them to you via email each day, once a week – whatever works for you – until you are really ready. Click here to let me know what might be looking for and I can start sending you listing alerts.
Don’t forget that the $8,000 tax credit is available only if you close before December 1, 2009 – that might be sooner than you think given that you should allow enough time to find the perfect home and then 60-90 days for everything that needs to happen between contract and close.
This $8,000 tax credit does not need to be repaid. Combined with historically low interest rates and more affordable home prices, the tax credit has made the decision to purchase real estate an easy choice for many buyers.
Review the following information to see if you are eligible to take advantage of the tax credit:
- The home purchase closed/will close on or after Jan. 1, 2009, and before Dec. 1, 2009.
- The home is being used as a principal residence.
- You have either never owned a home, or have not owned a home in the last three years.
- Your modified gross income is less than $95,000 for single tax payers or $170,000 for married filers.
An additional bonus: you can now take advantage of a Federal Housing Administration program to allow qualified home buyers to apply the credit as a downpayment when purchasing a home. This is possible through a short-term bridge loan that will let qualified home buyers use the tax credit to either make a larger downpayment above the FHA required 3.5 percent, cover closing costs, or buy down their interest rate.
Contact me at www.Basking-Ridge-Real-Estate.com for additional information.
This nicely priced 3-bedroom ranch should be viewed as a great opportunity to take advantage of the first time home buyer tax credit. Why buy a condo when you can own a house?
http://www.160mountairyroad.com/
160 Mt. Airy Road
This solidly built home – lived in always by the original owners – features hard wood floors, a full basement, a bluestone patio and newer windows. Close to the center of town as well as to public transportation. Contact me today to make an appointment to see it.
With the passing of an $8,000 tax credit for first-time buyers, much has been made about the great opportunity available to those who have never owned a home. Yet, the reality is that today’s market offers just as many advantages for existing homeowners wishing to move-up to a larger home.
“Many current homeowners mistakenly don’t think it is good time to buy because they are focused on what they might have sold their home for in the past,” said James W. Weichert, president and founder of Weichert, Realtors. “Once they realize how beneficial it can be to trade-up now, both financially and personally, they often have a change of heart.”
The Financial Benefits
Given the recent decline in home prices, some homeowners are understandably hesitant to sell their home. However, when you factor in the cost-savings on the home also being purchased, trading up now can produce a very positive financial outcome.
Take for example a homeowner who paid $200,000 for a home several years ago. If prices in their market declined by 10 percent, they would experience a $20,000 loss upon the sale of their home. However, if they are also buying a larger home that had cost $400,000; they would now benefit from a $40,000 savings on their purchase. This is a $20,000 gain in overall equity as a result of moving up. In addition, when prices begin to rise, this trade-up buyer will see greater appreciation in their new home than their previous one.
More House for Your Buck
With home affordability at a record-high and interest rates at a record-low, those looking to move-up can get more for their dollar today than at any time in recent memory. For some this historic buying opportunity can translate in to a home with more bedrooms for the kids or a bigger yard where the dog can play. For others it might mean a larger dinning room for entertaining family and friends.
Whatever the reason, today’s market makes it possible for many trade-up buyers to afford a home they couldn’t just a few years ago and might not be able in a few years to come.
In the Middle of the Action
Perhaps the biggest advantage for trade-up buyers is the fact that they are in the middle of the real estate action – literally. In most cases, the home they own is in the best-selling segment of today’s market, while the home they wish to buy is in a price range that is seeing far less activity.
According to the National Association of Realtors, for the first-time ever, more than half of all buyers are now first-time homebuyers. More often than not, the properties these first-time buyers want and can afford are the homes currently owned by move-up buyers. As a result, trade-up buyers who own starter homes that would be attractive to a first-time buyer may have a much easier time selling than they expected.
On the flip side, those looking to move up benefit from the reality that there are less people looking to buy larger, higher-priced homes. This lack of activity at the higher end of the housing market offers move-up buyers more negotiating power and affords the opportunity to be more selective. It also provides the very real possibility of even greater savings on the buy side during the trade-up process.
What remains unclear is just how long this opportunity to move-up to a larger home at an affordable price will last. After several years of price declines, many financial experts are predicting the market is close to a bottom. In addition, the government’s continued involvement shows that it is committed to stabilizing the housing market to stimulate the economy. At the same time, there is much speculation that interest rates may begin to rise in the near future after remaining stagnant within the same range for several months.
“Today’s affordable prices and low interest rates have opened a great window of opportunity for all buyers, not just first-time home buyers. The big question is how long the window will stay open before it slams shut,” added Weichert.
To search for available Basking Ridge Real Estate visit my website: www.Basking-Ridge-Real-Estate.com.
Originally printed: 6/2/2009 by Weichert, Realtors (Press Realease)