Historic home prices in the US increased by about 0.5% per year from 1890 to 2008 when adjusted for inflation, but have since settled back to 2003 levels due to economic factors after 2008. Several New Jersey towns are listed with current housing inventory statistics like active listings, pending sales, absorption rates, new listings, and price reductions. Absorption rates above 6 months generally lead to annual home price depreciation.

1. Historic Home Prices When adjusted for inflation, American home prices increased by an average of about half a percentage point per year from 1890 through 2008, according to data compiled by Yale University Professor Robert Shiller. ( www. USNews .com/money - Luke Mullins, March 4, 2010)

2. Home Prices Now Now, however, as a result of many economic factors since 2008, the median American home prices have settled back to 2003 levels. Source: Case Schiller Non-Seasonally Adjusted Composite 20 U.S. Home Price Index as of March 2010

4. Understand the Local Market That You are Buying into/ Selling out of…

5. How do we assess vitality in our real estate markets? By checking the Absorption Rate . It is the number of homes available in the market divided by the number of homes that have gone under contract in the past 30 days. It is our most accurate measure of current market strength .

7. Market Scale for Supply & Demand Weichert has been studying market conditions for more than 3 decades and has found a direct correlation between market absorption and property values. As absorption rates increase beyond a normal market level of 5-6 months, property values depreciate annually. Market Absorption in Months 1 2 3 4 5 6 7 8 9 10 11 12 Normal

8. 12/6/10 Towns Active Listings Pending in Last 30 Days Absorption Rate in Months New Listings in 30 Days Net Gain (Loss) to Market Listings Reduced in 30 Days % of Invent. Reduced Expired Listings W/drawn Listings Closed Listings Princeton Boro: All Styles 43 2 21.5 5 3 2 4.7% 2 3 10 Pton -Boro Condo/ Thouses 16 0 99 1 1 1 6.3% 1 1 7 Pton-Boro Single Family 27 2 13.5 4 2 1 3.7% 1 2 3 Princeton Twp: All Styles 122 11 11.1 14 3 12 9.8% 3 9 12 Pton Twp: Condo/ Thouses 21 1 21 5 4 2 9.5% 1 0 1 Pton Twp: Single Family 101 10 10.1 9 -1 10 9.9% 2 9 11

9. 12/6/10 Towns Active Listings Pending in Last 30 Days Absorption Rate in Months New Listings in 30 Days Net Gain (Loss) to Market Li1stings Reduced in 30 Days % of Invent. Reduced Expired Listings W/drawn Listings Closed Listings West Windsor: All Styles 97 16 6.1 12 -4 25 25.8% 10 6 17 West Windsor Condo/ T.Houses 24 6 4 3 -3 7 29.2% 1 2 5 West Windsor 55+ 5 1 5 2 1 -- -- 0 1 1 West Windsor Single Family 68 9 7.6 7 -2 18 26.5% 9 3 11 Lawrence: All Styles 189 11 17.2 30 19 27 14.3% 13 14 20 Lawrence: Condo/ THouses 65 3 21.7 10 7 14 21.5% 4 5 4 Lawrence: 55+ 14 1 14 3 2 -- -- 0 1 2 Lawrence: Single Family 110 7 15.7 17 10 13 11.8% 9 8 14

10. 12/6/10 Towns Active Listings Pending in Last 30 Days Absorption Rate in Months New Listings in 30 Days Net Gain (Loss) to Market Listings Reduced in 30 Days % of Invent. Reduced Expired Listings W/drawn Listings Closed Listings PlainsboroAll Styles 84 4 21 21 17 15 18% 7 0 9 Plainsboro Condo/ THouses 45 1 45 9 8 8 18% 3 0 4 Plainsboro 55+ 19 1 19 8 7 2 11% 1 0 1 Plainsboro Single Family 20 2 10 4 2 5 25% 3 0 4 Cranbury: All Styles 21 0 99 3 3 1 4% 2 0 2 Cranbury: 55+ 4 0 99 0 0 1 25% 0 0 0 Cranbury: Single Family 17 0 99 3 3 0 0 2 0 2

11. 12/6/10 Towns Active Listings Pending in Last 30 Days Absorption Rate in Months New Listings in 30 Days Net Gain (Loss) to Market Listings Reduced in 30 Days % of Invent. Reduced Expired Listings W/drawn Listings Closed Listings Ewing: All Styles 272 9 30.2 38 29 25 9.2% 16 12 22 Ewing : Condo/ T.Houses 36 1 36 6 5 15 41.7% 3 3 2 Ewing 55+: 8 0 99 2 2 -- -- 0 0 0 Ewing: Single Family 228 8 28.5 30 22 10 4.4% 13 9 20 East Windsor: All Styles 217 0 99 30 30 71 32.7% 14 3 12 East Windsor: Condo/ THouses 141 0 99 19 19 60 42.5% 9 2 8 East Windsor: 55+ 17 0 99 3 3 -- -- 2 0 0 East Windsor: Single Family 59 0 99 8 8 11 18.6% 3 1 4

12. 12/6/10 Towns Active Listings Pending in Last 30 Days Absorption Rate in Months New Listings in 30 Days Net Gain (Loss) to Market Listings Reduced in 30 Days % of Invent. Reduced Expired Listings W/drawn Listings Closed Listings Hopewell Twp. All Styles 130 1 130 18 17 25 19% 16 5 4 Hopewell Twp. Condo/ T.Houses 11 0 0 2 2 3 27% 2 1 0 Hopewell Twp.: 55+ 8 0 0 1 1 -- -- 0 1 0 Hopewell Twp Single Family 111 1 111 15 14 22 20% 14 3 4 Hamilton: All Styles 588 100 6 84 -16 115 19.5% 44 25 39 Hamilton: Condo/ THouses 106 20 5 14 -6 24 23% 5 6 2 Hamilton: 55+ 38 6 6 3 -3 -- -- 1 2 4 Hamilton: Single Family 444 74 6 67 -7 91 20% 38 17 33

13. 12/6/10 Towns Active Listings Pending in Last 30 Days Absorption Rate in Months New Listings in 30 Days Net Gain (Loss) to Market Listings Reduced in 30 Days % of Invent. Reduced Expired Listings W/drawn Listings Closed Listings Robbinsvill All Styles 144 18 8 29 11 37 26% 13 6 11 Robbinsvill Condo/ T.Houses 64 6 11 14 9 20 31% 7 4 7 Robbinsvill Single Family 80 12 7 15 3 7 21% 6 2 4 Hightstown Boro: All Styles 65 1 65 10 9 9 14% 8 5 4 Pennington 15 2 7.5 2 0 1 6% 1 2 3 Hopewell Boro 18 2 9 2 0 1 5% 1 2 3

14. 12/6/10 Towns Active Listings Pending in Last 30 Days Absorption Rate in Months New Listings in 30 Days Net Gain (Loss) to Market Listings Reduced in 30 Days % of Invent. Reduced Expired Listings W/drawn Listings Closed Listings Montgomery All Styles 130 22 5.9 26 +4 21 16 16 12 16 Montgomery Condo/Twnhms 26 5 5.2 10 +5 3 11 2 2 5 Single Family 104 17 6.1 16 -1 18 17 14 10 11 Hillsborough All Styles 259 28 9.2 25 -3 40 15 14 10 14 Hillsborough Condo/Twnhms 89 9 9.9 14 +5 21 23 5 6 5 Hillsborough Single Family 170 19 8.9 11 -8 19 11 9 4 9