I live in Wast Amwell and have listed and sold many homes in the immediate area of the Sourlands. Like many areas, the buyers come from diverse areas. Some NYC folks looking for the "weekender" and there are a number of thm that actually are the cyclists that we see (and try to avoid) everyday on the roads. During recent Open Houses I noted a good percentage of those out and about actually work at or for Princeton University since the southern area of E.Amwell falls within the mileage guidelines for the University sponsored mortgage plan. We love the area and are proponents of the live style and beauty, however, some of the restrictions, especially in the "mountain region" are viewed as a negative to some.
Hunterdon County as a whole (except Flemington/Raritan Twp.) has experienced a slower market than say Somerset County a sit's a bit further west. In a recent Otteau Report they listed the 10 worst market areas in the state and unfortunatelt Hunterdon County and a large number of Townships listed (West Amwell was #10 as an example, Kingwood and 2 others).
What does the future hold? I can't say for sure, other than if you see a property you want...get it. If your looking to sell..price it correctly. The overall recovery will be years in the making for Hunterdon County as a whole.

Movinonup: If price, taxes and acreage alone were the buying criteria, don't you think everyone would live on the same street? Or perhaps, there would be a building boom in one township? Everyone selects the right house for them for a ton of reasons. Some graduates of the worst schools get to go on to college or become successful in their own chosen fields. Not everyone goes to Princeton U. I went to Rider, for instance and managed to do OK (but never did get that Noble. Ah, well.)

Princeton attracts many because of the schools which are considered by most to be superior, shopping is much more available and the train much closer. If taxes were enough of a motivating factor buyers will go to Pa or DE. It is likely that a Princeton Realtor would sell E Amwell as an alternative though if buyer wants more rural, more land and may be commuting to Princeton. (Many in Princeton commute to NY or Philly)