Whether you are considering buying or selling Hopewell real estate, it is important to consider how the market here compares to the surrounding communities.
Here are few comparisons.
Interested in learning what your Hopewell house is worth in today’s market? Call us at 609-553-4175 for a confidential assessment or submit your information at What is my home worth?
Want to look for your Hopewell home? Click on the link below.
New Jersey Real Estate Housing Report For Princeton 2003-2008
Princeton Real Estate Homes presents the market report for the 2008. We analyzed the Princeton real estate market statistics results and compared them to previous years. Princeton real estate, unlike many places in the country, has good news to report. Thinking of selling your Princeton home soon? Looking to buy real estate in Princeton? This post is for you. Here are a the highlights.
indication that if bought your home last year, you can sell it for 10% more. Read: Understanding Princeton real estate prices.Categories 2005 2006 2007 2008
Units Listed 596 604 559 458
Listed Average 1,008,281 1,024,678 1,074,490 1,082,194
Pended 378 297 308 230
Units Sold 395 295 305 237
Average Sold Price 889,084 893,013 911,172 1,006,832
Average List Price 945,893 970,094 991,983 1,122,563
Max. Sold Price 4,080,195 3,340,000 3,700,000 4,125,000
Average DOM 76 94 97 101
*Data is based on Trend MLS ( 01/05/2009) and is not guaranteed
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 real estate home prices, as reported by national press and media, could mean very little for home 
sellers and buyers. The basic question/concern many Princeton real estate home sellers have is what is their home worth. As a home seller, when you read reports that the average prices are down/up nationally, or in New Jersey, or in Princeton, could you assume 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. Let's go back to the math 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%.
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.
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 and the reasons for prices being what they are. 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. The agents should be in a position to explain, for example, why median price was up while the average price was down. Without such deep understanding, quoting statistics could be misleading and potentially harmful to buyers and sellers who use these statistics to make important decisions.
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.
Luxury New Jersey real estate in Hopewell is something many of my clients and readers are interested in, especially given the recent financial crisis. This article provides the 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 an extremely 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.
Please call me at 609-553-4175 if you have questions about this article or would like to understand what is the best course for you now.
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.
Why some Princeton homes sell quickly while others languish? Worst yet, why some of the Princeton homes for sale don't sell at all? These are the frequently asked questions by those selling or contemplating a sale of their Princeton real estate. This year-to date in Princeton Township and Borough there were 327 Princeton homes for sale listed and 186 homes sold. This means approximately 43% of Princeton real estate did not sell and the homes were either withdrawn or expired. So, how as a home seller you could be part of the successful 57% ? One thing you could do is to examine some of the Princeton real estate success stories.
Read: Why Some Princeton Homes Sell Quickly?
Here is a case of the home I marketed recently - under contract within one week. The home was on the market 2 years ago. After several price reductions the offers were low. I found for these sellers an exceptionally profitable rental opportunity and the home was taken off the market and rented out.
Fast forward two years. The homes goes on the market and is under contract within a week for more then the offer two years ago. What has changed? Did Princeton real estate drastically improve over the last two years, or was there something else? How did we do it?
My seller clients know the secret word to make it happen and now I am going to share it with you. The word is "Wow". This is what a potential buyer has to say when they see your Princeton home for sale. It is as simple as that. This is what the "Wow" covers:
Price. Nothing trumps this in importance. The reaction you are looking from a buyer interested in a Princeton home like yours, is something like this: "Wow, all of this (meaning your home's amenities) for this $(meaning a realistic market price). Another way to look at it, your home has to beat all equal competing Princeton homes for sale on price. Often sellers are concerned they would end up selling for less then similar, but higher priced properties. Usually it's not the case. We have seen bidding wars for Princeton properties priced right.
Two years ago this home was priced the same or a bit higher then competition and didn't sell quickly. This time priced right it did, while many competing properties priced higher didn't sell at all.
Photography. You have to Wow buyers with photos. The goal is to make the buyers put your Princeton home for sale on the list of must see homes. You have to Wow the agents as well for them to want to come the Brokers Open House. It's only when they have seen how wonderful your home is in reality would they call their clients to say "Wow, I just saw a house you can't miss seeing".
This is exactly what happened with this Princeton home for sale. Pictures taken by a professional photographer - generated a lot of interest among other agents. Several agents said this could be perfect for their clients. There were many showings right after the house went on the market. One of these agents had a client who fell in love with the house and made an offer.
Bling. Professional photos could draw buyers and agents in and make your home look more appealing. They can't make up what it doesn't have. When the buyers visit the Wow factor has to continue. It doesn't mean the house has to be brand new or have gold plated faucets. Rather, buyers want to see the property was well taken care of and has been updated.
My clients' home was in good condition, it was well maintained, but it was vintage 80's. Reflecting on their first selling experience, my clients asked what updates could make a big difference. They replaced Formica counters with gorgeous granite in the kitchen and bathrooms. It wasn't cheap but it changed the look of the kitchen and bathrooms, the most important items buyers look at.
Visual appeal is very important. New home builders understood this, building elaborate model homes, long time before the concept of staging came to residential real estate resale. Buyers know they are not buying a home with furniture, yet this is how they see the home in their mind.
My client's furniture and presentation was OK, but the change was remarkable with the renter's furniture (at the time of the home being marketed). This furniture made the house look better and gave the rooms the needed extra punch.
There is a lot that goes into selling your Princeton home quickly and for the highest possible price in addition to the three factors above. One important consideration is what other properties are on the market at the same time. What do these houses for sale have that yours doesn't and visa verse. Pricing and marketing strategy have to take this into consideration. Timing is very important as well. For example, a home could have sold for X in June, but this opportunity could be gone for various reasons in July.
I see an opportunity now for Princeton home sellers in certain market segments because the inventory is low and there are buyers who wanted to buy this summer and are still looking. Your Princeton real estate success story could be the next to be told.
This article "House sold in one week- find out how" was first published in my other Princeton Real Estate blog.
If you are considering selling your home and have questions give me a call at 609-553-4175, or stop by at my office - 34 Chambers street, Princeton, New Jersey. Not ready to talk to an agent yet? Search on your own for Princeton homes for sale and homes for sale in West Windsor, Montgomery, Hopewell by clicking on this link Princeton Real Estate - Homes For Sale
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Princeton NJ real estate expert, bringing 25 years of marketing know-how to make my clients' selling and buying a positive experience.
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