REAL ESTATE MARKET REVIEW. Presented by. sueadler. team

REAL ESTATE MARKET REVIEW Presented by sueadler team

Dear Neighbor, It is a pleasure to share with you our first annual review of the Mid-Town Direct Train Line residential real estate market. In this report, which is based on extensive research on behalf of our current and prospective clients, you ll have an opportunity to examine 2014 market trends and relevant sales statistics, broken down by price bracket and town. We hope you find this information useful. Please feel free to share with your friends and family. It should not come as a surprise to anyone reading the headlines that the average home price is on the rise in our local towns. In 2014, the average sale price increased by 2% in our Mid-Town Direct Train Line Towns (Chatham, Madison, Maplewood, Millburn/Short Hills, South Orange, Summit) to $860,507. Prices are still down by an average of about 5% from their peak in 2007, but in some towns and in some price segments the prices are higher than the 2007 peak. Homes are selling faster again with the average days on market at their lowest levels since 2005. The backlog of unsold homes has plummeted as well. The economy remains buoyant from inside New Jersey. By the end of 2014, the unemployment rate was down to around 6.5%. It peaked at 9.7% in December of 2009. Adding to the good employment news, rental vacancies in New Jersey were down to about 7.8% at the end of 2013, compared to 11.2% from just a year prior. On a personal note, 2014 was a very special year for The Sue Adler Team, it marked one decade as the top Keller Williams team in the New York Tri-state Region and #12 in the entire country (out of approximately 109,000 KW agents). It also marked the second year in a row we were the #1 agents in the Garden State MLS by dollar volume sold (for all brands). Our team is proud to live and serve in our beautiful communities, and we are very grateful for the opportunity to make a difference in your life. Yours to count on, The Sue Adler Team

Sue Adler s Data & Market Commentary AVERAGE DAYS ON MARKET LIST PRICE TO SALE PRICE 80 100% 60 40 60 74 63 70 65 56 46 98% 96% 94% 97 96 97 96 97 98 99 20 92% 0 2008 2009 2010 2011 2012 2013 2014 The Average days that a home spent on the market before selling fell again in 2014 as buyers were quick to make offers given a lack of inventory. The average home sold in 45 days in 2014, 11 days faster than in 2013. It was the shortest marketing time in the past 7 years. The average was skewed higher by a subset of homes that sold after remaining on the market for 100+ days. Hot homes sold in less than two weeks in many of our Mid-Town Direct train line towns. For more information about your town, please see page 6. 90% 2008 2009 2010 2011 2012 2013 2014 The ratio of the list price to sale price is a shorthand measure of buyer demand relative to seller supply. A ratio close to or over 100% indicates that buyers are paying close to or over list price, and are seeing value. A ratio well under 100% means that homes are selling well below list price and that buyers are not seeing value. In 2014, homes on the Mid-Town Direct train line sold at 99% of list price, reaching a six-year high. For more information about your town, please see page 6. Our Mid-Town Direct Train Line Towns are a sought after place to live. Residents enjoy ease of access to New York City, excellent schools, friendly communities, and stunning downtowns with some of the best restaurants in the state. Mid-Town direct train line towns are: Chatham Boro/Township Madison Summit Maplewood South Orange Short Hills/Millburn INVENTORY & SALES 3,000 2,500 2,000 1,500 1,000 500 0 2,622 1,276 2,404 1,185 2,492 1,321 2,287 1,204 2,210 1,288 Inventory 2,313 1,652 2008 2009 2010 2011 2012 2013 2014 Sales 2,440 1,590 Inventory levels grew slightly in 2014 as the strong market in 2013 brought sellers to the market in 2014. 1,590 homes sold, while 2,440 homes were listed. Meaning that at any given time there is only 1.5 months of inventory on the market, indicating a strong seller s market. The discrepancy between inventory and sales grew. This is a trend we need to watch in 2015. When buyers have more choices they are slower to make decisions and prices become diluted. This, coupled with the slightly higher levels of new inventory, resulted in the higher turnover ratio. SALES BY TOWN 350 2010 2011 2012 2013 2014 300 250 200 150 100 50 0 247 235 251 324 296 235 228 251 Maplewood Millburn Chatham Boro 322 329 101 97 81 145 98 153 155 138 179 188 Chatham Township 161 152 178 221 255 150 131 128 178 164 274 206 261 283 260 113 126 117 165 127 South Orange Madison Summit New Providence 4 THE SUE ADLER TEAM

In 2014, the average sale price in the Mid-Town Direct train line towns increased $14,307 from 2013 or a 2% growth in just one year! SELLING PRICES HOME SALES BY PRICE RANGE $900K Price Range Average Days Average in Dollars on Market Number of Sales Sales to List 850K 838,321 800K 813,233 775,301 750K 768,112 785,274 846,200 860,507 1M or less 56 1,175 96.4% 1M-2M 70 323 96.1% 2M or more 119 83 93.4% 700K 2008 2009 2010 2011 2012 2013 2014 Selling prices continued to climb, as they have been for the past four years. Compared to 2011, prices in 2014 are up 12% to $860,507. Prices in the Mid-Town Direct train line towns reached a record high for the past seven years, but are still down on average 5% from the previous high in 2007 of $909,418. While this is the general market trend, we still see that prices in the luxury market have not bounced back to the levels of the rest of the market and some segments in the entry level market are higher than the previous peak. For more detailed information about your town, please see page 6. FINANCING Although a 20% down-payment is the industry norm, in the Mid-Town train communities we saw 50% of new homeowners putting down 20% to 30% in 2014. The low interest rate environment in 2014 resulted in 70% of the financing obtained to be fixed rate mortgages with only 30% of buyers selecting an adjustable rate mortgage. 90% selected conventional financing with 10% opting for government loans. Over 95% of the loans cast were 30 year mortgages versus shorter terms like 10 or 15 years. This is likely to be due to the favorable fixed rate environment, but may also suggest that homeowners electing to live in these communities are planning on staying put for the long haul. Down Payments: Average down payment for market is 23% <5% down.07% 5% to 20% down 93% 30% down 2% 20% to <30% down 4.93% MARKET SUMMARY 2014 will be remembered as being a great year to be a Seller in the Mid-Town Direct train line towns. Prices on average continued to rise and most homes sold at a very rapid pace. Sellers: Your home is likely gaining equity. The Sellers who net the most amount of money with the least amount of hassle spend time up front preparing their house for the market. Their homes are strategically priced to get top dollar, and showcased beautifully online with professional photography -the perfect recipe for creating the most interest, which keeps the seller in the driver s seat. The strongest Realtors will bulletproof the transaction up front, so that your transaction is as stress-free as possible. Consider consulting with a local realtor who specializes in working with Sellers for advice on your specific home. Buyers: It was a tough year to be a buyer in the sweet spot of this marketplace. We saw fewer homes come to the market than we expected and the good homes always seemed to go with multiple offers leaving many buyers feeling frustrated. Buyers needed to be in a position and have the context to move quickly. Those that met with a Buyer Specialist who was able to consult with them on the current market situation for their price point and towns, prepare them with a multiple offer strategy (if necessary), and discuss resale value, often came out on top. On average, only one of four offers written was accepted. Trends by Price Point: The upper bracket homes have not bounced back and if inventory rises, we will continue to see a Buyers market in this segment, especially for those that have not been updated; the midrange market is quite balanced where well priced homes that are ready for sale are selling quite quickly. The entry-level market continued to be a strong Seller s market where homes were selling quickly. With mortgage money being so inexpensive, it has been more cost effective for buyers to purchase homes with updated kitchens and baths, so we should continue to see demand for this in all price ranges. 973.936.9129 www.sueadler.com 5

2014 Home Sale Statistics THE CHATHAMS 2014 HOUSING REVIEW In 2014 Chatham homes took on average 48 days to sell compared to the Mid-Town Direct train line town average of 46. 286 homes sold in Chatham, with an average sale price of $912,819. The list to sale price ratio of 98% is in line with the rest of the train line towns and is quite strong, showing an overall sellers market. Due to the higher average price point, the slightly longer days on market are not a surprise to us, as the higher the price bracket, the fewer buyers, the slower the market. We expect to see this trend continue in 2015, keeping in mind that homes priced right in great locations, and prepared for sale typically sell rather quickly. In order to provide the most accurate statistics for the segments below, we have compiled the data for each property sold going back to listing date of 1/1/2013. This allows us to identify the actual original list price and true days on market which differs from the market overview because the MLS does not account for relisted properties. The following are our results: UNDER $500,000 TRANSACTIONS: 70 AVERAGE CUMULATIVE DAYS ON MARKET: 72 ORIGINAL LIST TO SALE PRICE: 95.2% The under $500,000 market in Chatham represented roughly 25% of all Chatham homes sold in 2014. Compared to the rest of the Chatham market, this market is slightly slower than normal with a lower list to sales price ratio than any other market segment in Chatham. One reason for this is the fact that several of the transactions in this price range were condo and townhouse sales. Glancing at these statistics, one could conclude that this price bracket is more of a buyers market. We would suggest however, that the statistics are skewed due to the high volume of condos and townhouses in this price range, which take longer to sell than single-family homes in the same range. The single-family homes in this price range sold fast and often with multiple offers. The statistics for this market segment are in line with other neighboring towns, and we plan to see this trend continue in 2015. $500,000 TO $1,000,000 TRANSACTIONS: 131 AVERAGE CUMULATIVE DAYS ON MARKET: 60 ORIGINAL LIST TO SALE PRICE: 96.1% The $500,000 to $1,000,000 market represented about 45% of the Chatham market in 2014. With the lowest days on market and second highest list to sale price ratio, it is clear that this is the sweet spot for Chatham real estate. This does not come to a surprise, as most of the Chatham buyers who contacted us to purchase a home in 2014 were looking for a home in this price range. $1,000,000 TO $1,500,000 TRANSACTIONS: 64 AVERAGE CUMULATIVE DAYS ON MARKET: 78 ORIGINAL LIST TO SALE PRICE: 96.2% The $1,000,000 to $1,500,000 represented 18% of the Chatham market in 2014. This market had the highest list to sale price ratio, indicating a strong Seller's market with low inventory. The homes that were recently updated or had a nice size property in great location sold faster, and with a higher list to sale price ratio than the homes that needed updates, or had location issues such as main road or power lines. 6 THE SUE ADLER TEAM 973.936.9129 www.sueadler.com $1,500,000 & UP TRANSACTIONS: 32 AVERAGE CUMULATIVE DAYS ON MARKET: 113 ORIGINAL LIST TO SALE PRICE: 95.5% The $1,500,000 and up market represented 12% of the total Chatham market. This upper bracket price range shows similar stats to other neighboring towns. The high-end market in 2014 was very seasonal school year driven. Most sales closed by August. Overall it was a slow moving price range with an average days on market of 113, and many of the homes were listed more than once before selling and often with a price reduction. On a positive note, if you take the full year into account, the overall average list to sale price ratio was strong, balancing out the slower months.

About the Sue Adler Team Ranked #1 for Dollar Volume Production in GSMLS and all of New Jersey for 2013 and 2014 #1 producing Keller Williams Team in the Tri-State Region for 10 straight years REAL Trends top 250 Agents Nationwide (past 3 years) Listed on Inman s 100 Most Influential Real Estate Leaders 2012 and 2013 Listed on Inman s 33 People Changing The Real Estate Industry 2014 We are proud to say that we helped 155 clients in 2014 get to the closing table. WHO WERE THE BUYERS IN 2014? In the entry to mid range price brackets, the typical buyer moved from NYC, Hoboken, Jersey City or Brooklyn, and were in there 30 s or early 40 s. There were also quite a few downsizers in this price bracket. The higher price brackets brought in relocation from New York City/Hoboken/Jersey City, but there were also more relocation buyers from other parts of the country than in the lower price brackets. We experienced a small increase in Move-Up Buyers compared to previous years. If inventory continues to grow in 2015, we expect to see this trend continue, especially the first half of the year before interest rates rise. One of the reasons the Move Up Buyer market has been slow in recent years is because if the buyers needed to sell first, the lack of good inventory made them nervous. Buyers in the highest two brackets tend to be school year driven and most close by Labor Day. The exception to this are the buyers moving within the same town. There were two SELLER TRENDS we experienced in 2014 that we expect to continue in 2015. 1. Empty nesters are selling and leaving town. Many are leaving NJ. They often take up to five years to make the decision to move. Why? They say they are overwhelmed with the thought of getting their homes ready, and they aren t sure where they want to go. A reputable real estate team of specialists has the capability to help homeowners through this transition including advising on necessary repairs, staging, and the entire process from pre-market through closing. Our network includes contractors, professional organizers who can donate, sell or haul away stuff, and top Realtors in other parts of the country where you may be considering exploring. 2. Sellers are weighing renovating vs. moving. We have received many more consultation calls this past year than previous years from homeowners wanting to know if they will recoup their investment if they renovate/expand. I work with excellent architects and am happy to consult with you on this at no cost, and help you weigh your options. You were like moving counselors. Your team s value is so much more than just selling houses people need to know that. SANDY KIRSCHENBAUM, Short Hills Seller and former Millburn teacher 973.936.9129 www.sueadler.com 7

Keller Williams Realty Premier Properites 518 Milburn Avenue, Short Hills, NJ 07078 sueadler.com info@sueadler.com Is your home worth more than you think? Visit PriceMyNJHome.com or call 973.936.9129 for your complimentary moving consultation. Why work with a team of specialists instead of a generalist? If you needed hand surgery, you d most likely go to a specialist, not a generalist, right? It is no different in real estate. It is very difficult for a solo agent to do it all today, or at least to do it all well. When you work with the Sue Adler Team, you are paying the same price for a team of specialists. Sue only works with Sellers and has sold more homes than any of her local competitors last year. There are five talented Buyer Specialists on the team who work with our buyer clients, previewing homes, and making sure they are well prepared to be competitive in this market. Unlike other agents who are generalists, Sue is 100% focused only on her listings. Melissa, Sue s Listing Success Manager, choreographs the marketing and behind the scenes process. Peter is our Professional Photographer, Vicky writes the copy for our beautiful brochures and Scott, our Director of Operations, sees your online marketing strategy to fruition and insures that all inquiries on your home are responded to immediately and professionally. Dawn has a construction background and is amazing at inspection negotiations and the contract to close process. Every team member is exceptional in their role, and I am proud to say that we helped 155 clients in 2014 get to the closing table. Read what Sue Adler Team clients say to understand why the Team Approach is so effective: sueadler.com/testimonials/ 973.936.9129 sueadler.com If your property is currently listed this is not intended as a solicitation.