Ø  Morris County Market Report
           Ø  Randolph Township Market Data
           Ø  Morristown Market Data
           Ø  Morris Township Market Data
           Ø  Mendham Township & Boro Market Data

Morris County, New Jersey
Market Condition Report
(February 2008)

In Morris County it is an active buyers market, despite what the media has been reporting.  Not only that, but to put things into proper perspective, according to the National Association of Realtors (NAR), the number of existing home sales in 2007 was the fifth highest on record.  Also, in Northern New Jersey, actual foreclosure numbers are very low compared to the national average, and significantly lower than standardly reported (according to the Otteau Appraisal Group).  Meanwhile, take note of this fact: The NAR predicts existing sales in 2008 to be fourth highest on record. 

The media has been presenting the housing data in such a ‘doom and gloom’ way as to frighten many prospective home buyers.  That, coupled with the real fallout problems that have stemmed from the unfortunate loose lending practices from many greedy mortgage providers over the past several years during the unsustainable boom, has resulted in a further softening of the market, despite the very desirable buying environment: historically low interest rates, coupled with a high inventory of homes to choose from. Home prices are now at healthier, more affordable levels, which is beneficial for the local Morris County Real Estate market in the long run, a desirable location where the demand will predictably continue to be high.  Morris County, overall, boasts a high quality of living in green suburbia, with top schools, and an easy commute to New York City.

It is interesting to note that in Morris County, average home prices in 2007 were virtually unchanged over the course of the year, compared to that in 2006, while average yearly prices increased 43.1% from ’02 through ’07 (calculated from the Garden State MLS data).   Meanwhile, inventory levels in Morris County remain high, although levels in the fourth quarter of ’07 were actually 3.4% lower than that in ’06, largely due to unmotivated sellers removing their homes from the market.  The Market Absorption Rate, a measure of the strength of a local real estate market, is theoretically how long it will take to sell off the given inventory of a specific market.  According to data from the Otteau Report, in the fourth quarter of ’07, this rate predictably showed that the market is strongest in the lower price ranges.  Interestingly, the Market Absorption Rate was basically the same in the third quarter of ’07 compared to that in ’06.  The numbers did show a bit of a softening in the fourth quarter year over year, from ’06 to ’07, with the Market Absorption Rate increasing from 7 months to 10 months (6 months is considered an even market, while numbers below are considered a seller's market, and numbers above, a buyer’s market).

In Randolph Township, prices dropped 10.6%  from ’06 to ’07 (data from the Garden State MLS, courtesy of Weichert, Realtors).  Additionally, the market weakened slightly in the fourth quarter from the third quarter, given a Market Absorption Rate of 7 months in the 3^rd quarter and 8 months in the fourth quarter. Randolph inventory levels in Q4 of ’07 were 25% lower than that in ’06, while sales dropped a whopping 44.8% and new listings coming to market dropped 21.8%.
  

Prices in Morris Township dropped only a mere 0.16% in 2007.  Meanwhile, the market in Morris Township weakened at the end of 2007, with a Market Absorption rate of 8 months in the 3^rd quarter, and 9 months in the 4^th.   In the fourth quarter, year over year, inventory was up slightly, by 2.2%, while the number of sales slid 36.3% .

Morristown prices dropped by a slight 1.07% in 2007, while the market absorption rate remained unchanged at 10 months, from the 3^rd to the 4^th quarter.  At the same time, sales were actually 10% higher in Q4 of ’07, compared to that in ’06, while the inventory was up 25.3%.

In the Mendhams, prices rose, 0.96% in Mendham Borough, and 6.73% in Mendham Township from ’06 to ‘07.  Conversely, the market weakened in the 4^th quarter, compared to that in the 3^rd quarter of 2007, from a 12 month to a 16 month absorption rate (a strong buyers market), sporting a slide in sales of 27.6%, while inventory dropped 19.2%.

	March 2008	April 2008	Month-Month % Change	April 2007	Year-Year % Change
# of Homes Sold	308	286	-7.14%	437	-34.55%
# of Homes Sold Year-to-Date	811	1,097	N/A	1,559	-29.63%
# of Homes Active on Market	4,302	4,603	7.00%	4,773	-3.56%
# of New Listings	1,030	1,197	16.21%	1,170	2.31%
Average Price of Homes Sold	$519,693	$539,670	3.84%	$555,048	-2.77%

Absorption Rates (months)

Absorption Rate is the projection of how long it will take the market to absorb the inventory of unsold homes within each market area.  (Data from Otteau Group Inc.)

Randolph Township, New Jersey
Market Condition Report
(April 2008 Data)

Randolph Township Market Data (Monthly Data from the Garden State MLS)

	March 2008	April 2008	Month-Month % Change	April 2007	Year-Year % Change
# of Homes Sold	17	9	-47.06%	21	-57.14%
# of Homes Sold Year-to-Date	40	49	N/A	71	-30.99%
# of Homes Active on Market	180	199	10.56%	218	-8.72%
# of New Listings	46	54	17.39%	46	-11.48%
Median Price of Homes Sold	$430,000	$490,000	13.95%	$477,500	2.62%

Morristown, New Jersey
Market Condition Report
(April 2008 Data)

Morristown Market Data (Monthly Data from the Garden State MLS)

	March 2008	April 2008	Month-Month % Change	April 2007	Year-Year % Change
# of Homes Sold	15	14	-6.67%	15	-6.67%
# of Homes Sold Year-to-Date	49	59	N/A	39	51.28%
# of Homes Active on Market	150	165	10.00%	161	2.48%
# of New Listings	31	49	58.06%	48	2.08%
Median Price of Homes Sold	$428,000	$354,000	-17.29%	$433,000	-18.24%

Morris Township, New Jersey
Market Condition Report
(April 2008 Data)

Morris Township Market Data (Monthly Data from the Garden State MLS)

	March 2008	April 2008	Month-Month % Change	April 2007	Year-Year % Change
# of Homes Sold	23	24	4.35%	27	-11.11%
# of Homes Sold Year-to-Date	48	72	N/A	89	-19.10%
# of Homes Active on Market	221	215	-2.71%	242	-11.16%
# of New Listings	64	54	-15.63%	71	-23.94%
Median Price of Homes Sold	$570,000	$555,000	-2.63%	$540,000	2.78%

Mendham Township & Mendham Borough,
 New Jersey
Market Condition Report
(April 2008 Data)

Mendham Township & Mendham Boro Market Data (Monthly Data from the Garden State MLS)

	March 2008	April 2008	Month-Month % Change	April 2007	Year-Year % Change
# of Homes Sold	6	7	16.67%	11	-36.36%
# of Homes Sold Year-to-Date	20	27	N/A	36	-25.00%
# of Homes Active on Market	151	167	10.60%	159	5.03%
# of New Listings	40	35	-12.50%	31	12.90%
Average Price of Homes Sold	$1,805,833	$1,032,144	-42.84%	$1,571,945	-34.34%

All provided charts, statistics and provided information is deemed reliable but not guaranteed.