OK, I got your attention with that recent online headline, right?  It got the attention of one of my clients as well, who expressed great dismay.  In fact, that headline refers to new home construction numbers of January.  New home "sales" refer to contracts signed, not properties closed, unlike resale numbers, which are transactions closed.  Remember the positive numbers for resales in February?  Those were December contracts (on average).  New homes numbers tend to be very volatile, especially in areas where there is climate change, like snow . When reading National Association of Realtors® market reports, don't draw conclusions for resales from new construction figures. 

One of the most popular developments in Hillsborough NJ is Country Classics.  Started in the early 1990's, the development consists of about 500 homes, and is still building.  By the time it is finished, there will be more than 700 homes.

For the past several years there have been only a handful of resales, usually as a result of job transfers or changes.  This year should see more resales as families in early sections mature and downsize out of the development..  Consequently, there will probably be more opportunities for buyers to find well-kept homes with amenities that would cost tens of thousands of dollars to add to new construction - landscaping and hardscaping, ceramic floors, granite counters, inground pools, etc.  One can expect to pay from the low $600,000 to $800,000 for such homes, and move-in times are a more customary two to three months, rather than nine to twelve. 

As this is written, there are several very sharp homes available, from a Bentley model on a cul-de-sac, to an unusual Doulton III with many walk-in closets.  Another outstanding home will be coming on the market - a Livingston II.  A Gramercy model, with a first-floor master suite, is currently in agreement for sale. Resales in Country Classics are a wonderful opportunity for people to move into the neighborhood without the fuss and stress of building new.

We have had some time to watch what at least one observer calls the "recovery of 2007."  In Central Jersey so far this year we've seen some patches of active markets, some patches of dead markets.  Some are price-driven - over $1,000,000 is slow, except in Montgomery Township, which seems to be slow at the lower levels.  Some are town-driven, where certain municipalities are stronger than others.  Hillsborough, for example, while an attractive area for many corporate transferees, has some older sections that are not selling as well as others.  In fact, in 2006 Hillsborough witnessed an almost 2% increase in average sale price.

What are buyers doing about this market?  More later.