Posts Tagged ‘housing market’

An Update on the New Jersey Real Estate Market

Monday, August 2nd, 2010

We do have some good news… the economic news has improved slightly, but we are still awaiting better news from the job markets here in New Jersey. We have not seen a large move towards rehiring but there are continuing signs indicating that things are improving. The initial unemployment claims are running about 22% below those of last year, according to Jeffrey Otteau, a leading New Jersey statistician. That is at least an encouraging sign.

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.

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The Current State of the Local Market

Wednesday, September 16th, 2009

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.

If you or anyone you know is currently considering a sale, now is an excellent time. I have quite a number of clients waiting for new listings to come on the market. Properties that have been sitting for awhile represent great opportunities for those of you that may want to upgrade or downsize a bit.

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.

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 let them effectively allow 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 November 30, 2009 to qualify.

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

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The State of the Market and What Really Matters

Monday, August 17th, 2009

by 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.

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How is the Market Doing?

Saturday, July 25th, 2009

by Francine Lichtman, Real Estate Sales Associate

image003The 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.

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Current State of the Market

Thursday, June 25th, 2009

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 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.

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

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Greater Optimism in the Local Housing Market

Thursday, May 28th, 2009

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

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The State of the Current Market

Monday, May 18th, 2009

by Francine Lichtman, Real Estate Sales Associate

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.

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The State of the Market and What Really Matters

Monday, May 18th, 2009

by Francine Lichtman, Real Estate Sales Associate

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.

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I’m Thinking of Selling, What Should I Do About My Old Kitchen?

Saturday, April 4th, 2009

by Randy Rabney

kitchenI’m sure that you’ve heard it said that the kitchen is the heart of the home. If you’re thinking of selling and don’t have a brand new chef’s kitchen, don’t worry. Here are some tips to make your existing kitchen show it’s best.

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.

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.

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