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by Francine Lichtman, Real Estate Sales Associate
The news remains positive. New Jersey has gone from having 17 months of existing inventory at the beginning of this year to about nine months now. We have seen six straight months of increased sales. Locally, our areas currently have about five to six months of inventory overall, but in the most popular price points, there are three to four months available. I have not seen those low levels in a couple of years. As everyone knows, when the inventory goes down, that is when the prices will begin to rise. We are very close to seeing the very beginnings of this movement.
PROPERTY TAXES
I currently have many clients who are challenging their taxes successfully. If you would like to talk about this, please do not hesitate to contact me via email.
YOUR FRIENDS AND FAMILY
I am always grateful for your referrals. Many of you continue to send clients to me and I thank you. If you have anyone in your sphere who has been thinking about buying or selling, please think of me. I would be happy to speak to them about the market and their options.
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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
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 November 30, 2009 to qualify.
If you or someone you know is thinking of buying a home, contact me at info@NJisHome.com |
Posts Tagged ‘Home Prices’
The State of the Market and What Really Matters
Monday, August 17th, 2009by Francine Lichtman, Real Estate Sales Associate
Hi and hope everyone is having a great summer. Wow, it is surely flying by in true tradition!
The market continues to show signs of recovery. The National Association of Home Builders has formally asked Congress to extend and enhance the first-time home buyer�s credit, which is due to expire on December 31, 2009. Here I go again speaking about this credit, but it is critical that these first time buyers gain entry into the market. I cannot stress enough the importance of this for the housing recovery.
The NAHB is specifically asking that the home buyer tax credit be extended for a year and that it be opened up to include all home buyers. This means that the income limit for eligibility, which is currently $150K per household, would be wiped away, allowing everyone to participate. If we are lucky, this could end up somewhere in between.
If Congress acts to extend the tax program, it would spur 383,000 additional home sales and create over 350,000 jobs.
The other issue that has been plaguing the housing market is a faulty appraisal system. The use of short sales and foreclosed properties as comps for determining home values has and continues to hurt home values and has even killed some home sales. When appraisals come in below the contracted sales price, there are often buyers who either pull out of the deal or ask that the seller reduce the price that they previously agreed upon. Most banks require that the comps used are from sales that are within the past 2-3 months, which is also key to the creation of stress in this area. This is a very short period of time. Previously the banks were allowing appraisers to go back 6 months to comp properties.
Hopefully we will have some movement on these issues over the next couple of months.
How is the Market Doing?
Saturday, July 25th, 2009by 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.
The State of the Market and What Really Matters
Sunday, July 12th, 2009by Francine Lichtman, Real Estate Sales Associate
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.
Current State of the Market
Thursday, June 25th, 2009|
by Francine Lichtman, Real Estate Sales Associate
Here are some statistics:
In Maplewood, there are currently 70 homes under contract, 30 of them have gone under since May 15th.
In South Orange, there are currently 48 homes under contractwith 23 of them since May 15th.
In Millburn/Short Hills, there are currently 59 homes under contractwith 30 of them going under since May 15th.
In West Orange, there are currently 105 homes under contractwith 50 of them since May 15th.
In Montclair, there are 91 properties under contract with 37 of them since May 15th.
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.
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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 |
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.I’m Thinking of Selling, What Should I Do About My Old Kitchen?
Saturday, April 4th, 2009|
by Randy Rabney
If you’re willing to invest some money, it can give you a big return. Your solid wood cabinets can look great again. Sand them and re-stain or paint. Replace the old hardware with stainless steel or nickel knobs and handles. Consider replacing beat up appliances. A great kitchen can sell a house.
You will be surprised at how affordable granite, marble or other stone counters can be if you go to the right vendor. Replacing your old countertop can be accomplished quickly and can make a huge difference in how an older kitchen will show. This, in combination with updating the cabinets, may make you want to stay in your home! When you take on this project, don’t forget to put in a new under-mount sink as well. Your kitchen will look great. You can likely do your full kitchen “upgrade” for around $4,000-$5,000, depending on how much counter space you have. We have great resources and would be happy to direct you and even help with your choice of materials.
If you don’t want to go this route, some buyers are fine to do the work themselves and are just concerned that the space is right.If your kitchen clearly needs a remodel, price accordingly and make sure that your kitchen is immaculate. Remove all clutter from the countertops, even if it’s inconvenient. Put the dish drain and appliances away when the house is being shown. Your house should look like a model home so that when a buyer walks in, they can see themselves living there.
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YOUR ASSIGNMENT If you want you want more information about preparing your home for sale, you can visit our website at www.NJisHome.com and download our fr*ee Seller’s Guide at the bottom right. |
I’m sure that you’ve heard it said that the kitchen is the heart of the home. Sell Now! Buy Now!
Tuesday, March 24th, 2009Why is it a wise decision to sell now or buy now?
We recently attended a conference presented by Jeffrey Otteau, a well known expert on the NJ housing market. Below is an overview of what we learned in combination with what we know being experts in our marketplace.
With hindsight, we realize that the economy began it’s contraction during the fourth quarter of 2007. This was the point in time when home sales really began to slow down and prices began to fall at a faster pace. Several things brought us to this point. From 2000-2005, NJ income rose 16% while housing costs rose 88%. This was very unhealthy, even though for the sellers, it was a party! As of the end of 2008, the pace of home sales had slowed by 50%. Right now, we are seeing home prices drop by 0.5% per month in our area. In other areas, they are dropping at a greater rate. The expectation is for them to hit bottom sometime during the second half of 2009 or early 2010. With this in mind, a buyer who is in the market right now not only has a wide choice of inventory and reasonable prices, they also have mortgage rates that are incredibly attractive! By later in 2009, these mortgage rates are expected to be history.
For a seller who is trying to decide whether to sell now or wait a year or two “until the market comes back,” here is Otteau’s projection: If you wait, you will net 10% less than you will by selling today. The drop of 0.5% per month is expected to be in place for at least the rest of this year, followed by a lengthy flat period while the unsold inventory slowly sells off. This will keep home prices flat for the next two to three years. It is only after the inventory declines that we will see the beginning of a recovery. At that time, we will see an approximate increase in home prices of 3% per year. By 2014, prices will be back to where we are today!
Buy now! Sell now!
YOUR ASSIGNMENT
We are now at the beginning of the 2009 Spring market. There are many lovely and wonderfully priced homes coming on the market each week in all price points.
We would be happy to send you some listings if you are considering a move up, down or sideways! If you have questions about your particular situation, please feel free to contact us for a confidential assessment of what a move would look like for you financially.
(646) 734-9077