Mortgage rates across the board are literally at 40 year lows with 30-year fixed rates at about 4.75% and 15 year at 4.20%. It is time to buy!

In the housing market, after a very busy Spring, we saw a decline in sales for May, as most of you know. Essex County, as a whole, saw a 22% decline as compared to last year with Morris County at a 17% decline and Union County with 24%.

June was slow as well. The interesting thing is that the market does seem to have picked up again over the last couple of weeks. There may not be many people out at open houses on a Sunday with temps closing in on 100 degrees, but there are clients out there calling me and coming to see my listings so that is a good sign. If you know of anyone considering a move, remember–I am never too busy for your referrals.

You would think that people who have this level of income would not be too terribly affected by the downturn in the market, but they surely have been.

Eddie Murphy’s 30-room Englewood mansion went on the market in 2004 for $30 million and can now be yours for the low, low price of just $12.75 million.

Hip-hop entrepreneur Russell Simmons has a 35,000 sq. ft. home in Saddle River which was on the market in 2007 for $23.9 million. It did not sell so he took it off the market. It is now listed again at $13.9 million–only $400K more than he purchased it for in 2001.

The luxury home market in New Jersey has plummeted due to the obvious … the difficulties on Wall Street centered around job loss and the shrinkage of most stock portfolios.

According to Jeffrey Otteau, real estate statistician, there is a 7-year supply of luxury homes right now in Bergen County. The people who have wealth and liquidity are holding on to their money and so are the banks in these instances. Let’s face it, if you are buying an $8 million home and have a 50% down payment, you still need to qualify for a $4 million dollar loan and there are not that many banks out there who are willing to take on that kind of concentrated risk.

The word right now is that the market in Northern New Jersey between $2.5 million and $6 million is very quiet, but the higher ends are beginning to see people coming back out to look. There was a recent purchase of two vacant lots in Alpine, New Jersey. Each of these were two acre plots. One sold for $4 million and the other for just under $5 million. Now each of the owners will pour additional millions into building their mansions.

One last interesting bit of information on this topic is that the Frick estate, a 27 acre Alpine property, is on the market for $68 million. It is the most expensive property in Bergen County. The property was owned by Henry Clay Frick II, a doctor who was a grandson of the coal and steel magnate, Henry Clay Frick.

If you know anyone who is looking for real estate at this level, let me know. I would say that a 3% commission on a sale of this magnitude would allow me to take a sabbatical. It would also get you a very nice gift for referring the client!

by Francine Lichtman, Real Estate Sales Associate

The housing market in our area continues to show signs of stability. We have seen numerous consecutive months of an overall decrease in the number of homes listed and an increase in the number of homes going under contract.

Some buyers naturally want to know when the prices will hit rock bottom. This is very difficult to determine. We do know that if we are not at this point yet, we are extremely close. A recent report from Bank of America-Merrill Lynch states that the housing market could start to see modest growth by the end of this year. This statement relies upon long term mortgage rates remaining low. We also know that the weak job market will keep the housing market from more rapid growth.

Don’t hunt for the bottom. Know what you want and what you can afford.

Remember, buying a home is all about providing you and your family with a place to live.

Here are the latest statistics from the area since July 1st:

Maplewood: 14 homes have gone under contract. In total, there are 66 homes under contract in this market.

Millburn/Short Hills: 14 homes went under contract totaling 58 properties currently under contract.

Montclair: 24 properties went under contract for a total of 78 homes under contract in this area.

South Orange: 11 homes under contract for a total of 33 homes under contract.

West Orange: 21 homes under contract for a total of 94 homes under contract here.

We have a lot of good news out there right now.

Statistics tell us that 56% of New Jersey households can afford an entry level home. This is up from 44% just a year ago. The first-time homebuyers credit is definitely a factor here. The NJ Housing and Mortgage Financing Agency is offering a program that makes it easier for many residents to take advantage of this program. They will offer a “pre-fund” of $5,000 that will allow first-time homebuyers who make less than $120,000 to use the tax credit to cover closing costs, rather than having to wait to get the credit when they file their tax return next year.

Another piece of good news is that there is a measure before Congress to raise this credit to $15,000 and extend it to mid-2010. Right now, the deadline is December 31, 2009. In addition, there is a push for this to include ALL homebuyers and not just first-time. The importance of these incentives from the government cannot be underestimated.

Presently, there are 46 towns in New Jersey that have less than six months of inventory, which is the balance point below which home prices tend to stabilize or rise. The top performing 20 towns in New Jersey indicate that Maplewood is #16 with a 4.4 month supply of inventory. The only other Essex County towns are Glen Ridge with a 2.5 month supply, Cedar Grove with a 3.8 and Nutley at #15 with a 4.3 month. As a matter of interest, Chatham in Morris County ranks #10 with a 3.8 month supply of inventory.

Certainly, we will see continued economic challenges ahead, but one thing to remember is that the housing market leads the economy in and out of recession. There is a ray of light that is faintly visible to all who are watching closely. If the government programs continue and are even perhaps enhanced, we will begin the recovery in earnest before the year ends.

I often speak about the first-time homebuyer. My reasons for doing so are to remind everyone that all of the movement within our market begins with this group of consumers. When the first-time buyer makes a purchase, it allows that original first-time buyer to move up into their next home, and so on. This is what creates the demand for the homes that many of you own right now. It is a massive chain that needs to be in place for the housing market to be a healthy one.

by Francine Lichtman, Real Estate Sales Associate

If you recall, in my last ezine, I spoke about the market being very active. I am happy to report that this activity has continued. We have seen many home buyers out there ready, willing and able to move forward with a home purchase.

Here are some statistics:

In Maplewood, there are currently 70 homes under contract, 30 of them have gone under since May 15^th.

In South Orange, there are currently 48 homes under contractwith 23 of them since May 15^th.

In Millburn/Short Hills, there are currently 59 homes under contractwith 30 of them going under since May 15^th.

In West Orange, there are currently 105 homes under contractwith 50 of them since May 15^th.

In Montclair, there are 91 properties under contract with 37 of them since May 15^th.

These are very impressive and encouraging numbers.

Not only are we seeing movement in the lower end of the market, but we are also seeing some movement in the higher ends as well. Once again, the key to a fast sale and to getting the most money in your pocket is a fair price and a house that shows like a model.

I can help you through the process very easily with my team of stagers.

Assignment

If you know anyone who has been thinking of buying a home instead of remaining in the rental market, please send them my way. I have access to some of the best mortgage people around.  Many first time buyers are out there taking advantage of the First Time Homebuyers credit. This is an $8,000 credit on your tax return. In some instances, borrowers who use an FHA loan can actually get advances from their lender that effectively allows them to receive this credit in advance.

FHA loans require only a 3.5% down payment. This credit cannot be used for the minimum down payment but can be used as an additional down payment or for closing costs.

You must purchase your first home by December 1, 2009 to qualify.

If you or someone you know is thinking of buying a home, contact me atinfo@NJisHome.com

by Francine Lichtman, Real Estate Sales Associate

The last few weeks have seen a very nice upward move in the sale of homes! Maplewood has a total of 66 homes under contract while Montclair has 85. West Orange has 100, South Orange has 42, Millburn/Short Hills has 52 and Summit has 54. Inventory, overall, has moved down about 15-20%. It certainly appears that many buyers suddenly have gotten off of the fence and realized that there are great prices and great interest rates that are available NOW. No one knows for sure what the future will bring.

Buy now, Sell now.

There is one other change that I am seeing in the marketplace. Sellers are becoming more realistic about the prices their homes will be able to sell for.Gone are the days of the crazy market which allowed us to put a nice house on the market, go away for the weekend and come back to multiple offers, often times enabling us to receive a bonus of up to 15% over asking on our homes! Remember, however, that we all need a place to live. If you are receiving a big bonus on your sale, you are also paying a big bonus on your purchase. The Universe just works that way!

Let’s Schedule Some Question and Answer Time

If you would like to schedule some time to discuss the market with me, I would be happy to make an appointment with you.  Whether you are considering a sale or a purchase, now is the right time to move forward. Property prices are relatively stable at the moment. Homes that show well and are priced correctly are selling.

Hire the team that goes BEYOND FOUR WALLS to make your experience one that is as stress free as possible. Knowledge is power. Download my Free Tips for Buyers and Sellers at www.NJisHome.com

The “Spring Market” has definitely arrived in our area.

We have suddenly seen a spike in local sales. With the mortgage rates remaining low and the inventory filled with delicious morsels, many long time renters have been lured into the arena of homeownership.

Since April 1, below are the statistics in the surrounding towns.

For some clarity, a property goes into Attorney Review when an offer has been submitted and a Seller has accepted it. This process generally runs for 3 days. A property is considered “under contract” when the 3-day Attorney Review period ends and everyone has come to an agreement on the various terms in the contract.

Maplewood: There are 141 Active (available) properties on the market. In addition to this number, there are another 12 properties that are currently in the Attorney Review process and another 33 that have gone under contract. What that translates into is that 45 properties have been spoken for since April 1 - that is an excellent number!

South Orange: There are 119 Active properties on the market.  12 properties are in Attorney Review and 21 additional are under contract. This adds up to a total of 33 properties that have gone since April 1.

Millburn/Short Hills: There are 134 Active and available properties on the market. 12 are in Attorney Review and 27 are under contract.  Total properties spoken for since April 1: 39 properties.

Montclair: There are 204 Active and available properties on the market. 16 additional properties are in Attorney Review and 32 more are under contract. Total properties spoken for since April 1:  48 properties!

West Orange: There are 416 Active properties on the market.  19 are in Attorney Review and 43 properties are under contract. This adds up to a total of 62 properties since April 1 - also an excellent number.

As many of you know, our local area has certainly struggled with lower sales prices for homes. There have not been quite enough buyers out there who are ready, willing and able, and many have had personal doubts around timing for a sale or purchase. Despite these challenges, the decline in NJ home prices is running at a much lower pace than the rest of the country.

If you compare our price declines (-7.00% in the past year) to other declines in places like

Nevada (-28.24%), Florida (-23.96%), California (-25.52%) or Arizonia (-20.56%), we can quickly see that things are much worse in other places. Another strength that puts New Jersey above the crowd is that even though the state has seen significant job loss over the past decade, we continue to have the second highest median income in the U.S. along with the greatest population density. The combined efforts of our high income coupled with lower prices and low interest rates have pushed housing affordability back over 100%, which it has not seen in many years. As a matter of fact, in 2006, our housing affordability was at 81% and we are now looking at 110%. This means that the NJ homeowners can now afford to pay their mortgage and their bills on their current salaries. This is a good indicator that the market recovery in this area will begin in earnest as soon as the job market improves.

Another indicator is the lower foreclosure rate. In February, NJ foreclosure filings dropped 33%. The national foreclosure rate is triple that of NJ.

~ Prospective home buyers, take note ~

Your purchasing power will begin to decline in 2010 when home prices end their decline and interest rates begin to rise.