Though economy is slow, housing market is strong…

ECONOMIC CLIMATE: In the second part of our series examining the economy, the Herald finds the local housing market is as strong as ever.

By: Chris Karmiol
   Many indicators say the economy has softened since the fiscal bonanza of recent years, and businesses and consumers are feeling it.
   The media reports of major corporations laying off employees by the truckload and some businesses are struggling to stay afloat. The real estate market, on the other hand, is alive and kicking, and in the East Windsor-Hightstown area that is especially so.

   "We’re seeing a strong market despite the economy in general and despite the scary things we’ve seen," said Ann Butler of Weidel Real Estate.
   Sales are vigorous, she said, with houses priced reasonably and moving quickly. Moving so quickly, in fact, that speed is of the essence when in buying mode.
   "We have a lot of families who are actively looking for homes," said Shirley Olsen of Van Hise Realty in Hightstown. "When I call them they have to jump on that house, because if they don’t, someone else will. It’s a seller’s market. It’s been that way about three years. That’s not changing."

   The so-called recession has yet to find expression in the real estate market in East Windsor. In fact, prices have continued to rise up to 20 percent since last year, according to Ms. Olsen, and this upward trend shows no signs of slowing. The reason?
   "There’s not enough inventory, (there’s a) lack of homes in the area," Ms. Olsen said. "There’s only two new units in Hightstown, and several new homes in East Windsor up in the $400,000 to $700,000 range."
   Those high-end houses include the Centex developments Crown Pointe, 42 single-family units between Airport and Conover roads; Oak Pointe, 37 single-family units at the end of Oak Creek Road; and Windsor Crossing, 102 single-family units at the end of Hickory Corner Road. Those new units, some still under construction, will mark the end of a growth spurt for East Windsor.
   "We are basically about capped off at new residential development," said East Windsor Mayor Janice Mironov.
   As movement into East Windsor continues, new home demand and prices are continuing to rise like dough.
   "I think there’s clearly a diversity of housing opportunities in East Windsor," Mayor Mironov said, "but I think the housing being built is reflecting what the builders believe that people are willing to pay."
   "I think people in this area in New Jersey are making good salaries and they’re able to buy these homes," said Ms. Olsen. "But not everybody can afford that kind of house."
   The average buyer, according to Ms. Olsen, is looking for a home in the $270,000 range, a figure that continues to rise as husbands and wives both work to pay off mortgages.
   "Not everybody’s going to buy that house," she said. "That’s why Hightstown is still more affordable (than East Windsor)."
   In Hightstown, Ms. Olsen said, houses with "the older charm" and two-story houses offer options in reachable price ranges, from $74,000 — for one side of a two-family house — to $260,000. Other options include purchasing a two-family house, at an average of about $210,000 according to Ms. Olsen, and renting out the other side to help pay bills.
   For sellers, Mayor Mironov said she has seen the value of houses rise dramatically during her term as mayor.
   "Whenever you have a value hike of that kind some of it is attributable to supply and demand," explained Mayor Mironov. "A great many more people want to buy houses in the area than there are houses to sell. East Windsor has developed as a very attractive and well-balanced community with large amounts of open space and farmland with a good share of retail and other businesses."
   That, plus the town’s accessibility to New York and Philadelphia makes it ideal for commuters. But not all new home buyers are commuting. In addition to the new developments, East Windsor is moving forward with age-restricted housing on One Mile Road, and discussing more around Monmouth Street, said Mayor Mironov.
   "There’s a great demand for age-restricted housing today, with the increase of senior citizens within our community," the mayor said.
   As baby boomers age, that demand will continue to grow, and may keep the pulse of the real estate market beating for years to come. In the meantime, brokers will stay busy trying to move high-end housing despite a national slowdown in earnings.
   As recent terrorist events have tossed a wrench into other industries, such as air travel and tourism, real estate remains distanced from those problems.
   "We really haven’t seen an effect of that," Ms. Butler said. "At least not yet. Everyone’s holding their breath."