Country Classics in Hillsborough, New Jersey, is a very popular development that has been building since 1991.  When it is finished several years from now, it will have about 800 homes, mostly two-story with full basements and two- or three-car garages mostly on lots less than half an acre.

Country Classics has not totally escaped the real estate troubles of the past two years.  Looking at price trends over the past five years we see the following for "resales" (not new by the builder, who since 2006 is building again and competing with his former customers):

2004     10 sold and closed     Median sale price: $603,750 

2005     11 sold and closed      Median sale price: $686,000

2006     11 sold and closed      Median sale price: $715,050

2007     12 sold and closed     Median sale price: $680,000

2008      9 sold and closed     Median sale price: $659,000

In this development there was a decline of 4.9% in median price from 2006 to 2007, according to the sales reported in the Garden State Multiple Listing Service (GSMLS).  From 2007 to 2008 there was a decline of 3.09% in median sale price of resales.  Part of this decline may be attributed to the competition from the builder, who is vigorously marketing, including finished basements occasionally in his base price.  Right now, his base price is $699,900.

 What is the point to all this?  Value increases (and decreases) all come down to individual homes, and in this development some floor plans have more appeal than others.  Usually, the bigger homes garner more attention as well as more money.  Certain lots - not always the largest - have more attractiveness than others.  Some amenities are more appealing than others.  But the bottom line really is that sellers in developments where the builder is still building, really shouldn't sell unless it suits their own time frame and lifestyle. 

 But isn't that what owning a home should be about anyway?  Don't try to time the market on the basis of a guru's recommendation.  Suit your needs and lifestyle.

For more information on Country Classics, go to:http://tinyurl.com/b2bl3c
.

Country Classics in Hillsborough, New Jersey, is a very popular development that has been building since 1991.  When it is finished several years from now, it will have about 800 homes, mostly two-story with full basements and two- or three-car garages mostly on lots less than half an acre.

Looking at price trends over the past four years we see the following:

2004     10 sold and closed     Median price: $603,750 

2005     11 sold and closed      Median price: $686,000

2006     11 sold and closed      Median price: $715,000

2007     19 sold and closed     Median price: $705,625

In this development there was a decline of 1.3% in median price from 2006 to 2007, according to the sales reported in the Garden State Multiple Listing Service (GSMLS).  (These numbers are skewed by the fact that about 45 homes were sold by the builder in 2006 and not entered into the GSMLS)  In 2007 7 of the 19 homes were new by the builder.

Also interesting is the data from new homes that re-sold shortly (less than two years) after construction.

One sold for $715,050 on August 31, 2006.  It closed for $685,000 on February 11, 2008.  The second sold for $744,375 on February 13, 2006, and sold again on December 10, 2007 for $775,000.  The Case-Shilling Index used by Standard & Poor's (to convince people to not buy real estate, but stocks) would use these two examples.  You do the math.  No conclusive evidence here except that the one that sold later sold for less, rather than more, than its original price.

What is the point to all this?  Value increases (and decreases) all come down to individual homes, and in this development some floor plans have more appeal than others.  Usually, the bigger homes garner more attention as well as more money.  Certain lots - not always the largest - have more attractiveness than others.  Some amenities are more appealing than others.  But the bottom line really is that sellers in developments where the builder is still building, really shouldn't sell unless it suits their own time frame and lifestyle. 

But isn't that what owning a home should be about anyway?  Don't try to time the market on the basis of a guru's recommendation (except THIS guru - ;-) ).  Suit your needs and lifestyle.