The New Jersey Association of Realtors has launched a public awareness and advocacy campaign aimed at raising public understanding of the proposed legislative increase of the tax and how it will affect property values and raise the cost of selling a home.
The NJ Home Sales Tax is officially known as the Realty Transfer Tax(RTF). This state imposed fee has been charged to sellers since 1968 to offset the cost of tracking real estate transactions in the state. In the years since, the RTF has increased numerous times and currently includes a “buyers tax” paid on properties over $1million. The NJ Home Tax has increased 80% since 2003 on the sale of an average home.
The NJ State Legislature is considering permitting individual municipalities to establish their own Home Sales Tax which would amount to raising the RTF.
For more information and to sign a petition against this proposal, go to www.njhometax.com. There is concern that plans for a local RTF will move forward when the legislature enters the lame duck session in November.
Thursday, August 9, 2007
All Real Estate Is Local
During the boom and especially today, media real estate reports tend to site national statistics as reflective of all real estate activity. This obscures the fact that markets are individual and pulsate to different stimuli. The National Association of Realtors® Chief economist recently published a book, All Real Estate Is Local. This was written for consumers and explains why markets respond differently and why it is always a good time to buy real estate, somewhere.
They Trade In Autos, Don't They?
Many home builders with large inventories of new construction are considering setting up trade-in agreements with people who must sell their current residence before they can buy . The builder buys the customers’ existing house and sells them one of their new ones. This saves the buyer from having to find a buyer for their home in a slow market, and builders have a crew on hand to do makeovers on the old houses to increase the market value and salability.
What’s the Value of Going Solar?
We are part of a “Green Generation”, no matter what our age. The current focus on alternative energy has kicked up the interest in solar power, again.
Once cost ineffective, now solar panels cost about 50% of what it was 15 years ago. To power an average size house, the system costs about $30,000. It is expected that costs will fall even more rapidly in the next few years.
Other considerations to solar installation is the cost for electric panel upgrade (about $1500), trimming trees to allow adequate sunlight, an engineer inspection to validate the integrity of the roof to hold the system and local township permits.
With tax incentives offered in some states, the systems can pay for themselves in a decade.
However, the costs pay off when it’s time to sell. According to a study by ICF Consulting, every $1 reduction in annual fuel bills increases a home’s resale value by $10-$25.
Info? Go to www.njcleanenergy.com.
Once cost ineffective, now solar panels cost about 50% of what it was 15 years ago. To power an average size house, the system costs about $30,000. It is expected that costs will fall even more rapidly in the next few years.
Other considerations to solar installation is the cost for electric panel upgrade (about $1500), trimming trees to allow adequate sunlight, an engineer inspection to validate the integrity of the roof to hold the system and local township permits.
With tax incentives offered in some states, the systems can pay for themselves in a decade.
However, the costs pay off when it’s time to sell. According to a study by ICF Consulting, every $1 reduction in annual fuel bills increases a home’s resale value by $10-$25.
Info? Go to www.njcleanenergy.com.
Eagles De-Listed
Sometimes my focus on real estate is delightfully interrupted as when I read that the American bald eagle has been removed from the endangered species list. There are currently 20,000 nesting pairs throughout the US!
Editor
Editor
Notes From All Over
Legislation was introduced to the US House on June 28th that would create a National Affordable Housing Trust Fund for the building, rehabilitation and preservation of affordable homes and rental units.
The top three of AARP’s list of favorite cities for seniors to live are Atlanta, Boston’s Beacon Hill and Milwaukee.
Sales of high end homes are doing better than the rest of the market as affluent families continue to do better financially, foreign investor buying power has grown, and sub prime problems seldom affect this market
The top three of AARP’s list of favorite cities for seniors to live are Atlanta, Boston’s Beacon Hill and Milwaukee.
Sales of high end homes are doing better than the rest of the market as affluent families continue to do better financially, foreign investor buying power has grown, and sub prime problems seldom affect this market
Berkeley Township Adult Communities- Sales Statistices
July 2007
Holiday City
Berkeley 93 Listings from $119,500 to $269,900- 12 closings from $105,000 to $200,000- 87 average days on the market
Carefree 51 listings from $139,500 to $229,900- 4 Sales from $149,000 to $207,000- 140 average days on the market
Holiday Heights 40 listings from $163,900 to $388,900- 3 closings from $222,000 to $280,000- 31 average days on the market
South 76 listings from $140,000 to $269,900- 6 closings from $139,000 to $187,000 - 116 average days on the market
West 58 listings from $139,900 to $326,000- 6 closings from $133,000 to $215,000- 108 average days on the market
Silver Ridge Park
East 16 listings from $119,900 to $249,900- 1 closing at $159,000- 151 average days on the market
North 12 listings from $159,900 to $260,000- 5 closings from $195,000 to $/220,000- 96 average days on the market
West 23 listings from $141,999 to $210,000- 1 closing at $123,000- 42 days on the market
Westerly 21 listings from $139,900 to $269,900- 1 closing at $195,000, 79 days on the market
Information from Monmouth/Ocean MLS– Deemed reliable but not guaranteed– May not reflect all real estate activity in market
Holiday City
Berkeley 93 Listings from $119,500 to $269,900- 12 closings from $105,000 to $200,000- 87 average days on the market
Carefree 51 listings from $139,500 to $229,900- 4 Sales from $149,000 to $207,000- 140 average days on the market
Holiday Heights 40 listings from $163,900 to $388,900- 3 closings from $222,000 to $280,000- 31 average days on the market
South 76 listings from $140,000 to $269,900- 6 closings from $139,000 to $187,000 - 116 average days on the market
West 58 listings from $139,900 to $326,000- 6 closings from $133,000 to $215,000- 108 average days on the market
Silver Ridge Park
East 16 listings from $119,900 to $249,900- 1 closing at $159,000- 151 average days on the market
North 12 listings from $159,900 to $260,000- 5 closings from $195,000 to $/220,000- 96 average days on the market
West 23 listings from $141,999 to $210,000- 1 closing at $123,000- 42 days on the market
Westerly 21 listings from $139,900 to $269,900- 1 closing at $195,000, 79 days on the market
Information from Monmouth/Ocean MLS– Deemed reliable but not guaranteed– May not reflect all real estate activity in market
Residential July Sales Statistics
Keeping You Informed About the Housing Market!
Beachwood 27 new listings at a median price of $299,900- 11 under contract- 7 closings with a median sales price of $279,000- 97.28% list to sale price ratio
Brick 145 new listings at a median price of $389,850- 61 under contract- 49 closings with a median sales price of $339,900- 95.69% list to sale price ratio
Toms River 211 new listings with a median price of $384,900- 96 under contract- 68 closings with a median sale price of $336,500- 95.31% list to sale price ratio
Island Heights 5 listings with a median price of $598,900- 4 under contract- 1 closing at $390,000- 86.67% list to sale price ratio
Lakehurst 5 new listings with a median sale price of $259,900- 2 under contract- closing at $180,000- 80.00% list to sale price ratio
Manchester 34 new listings with a median price of $347,450- 15 under contract- 14 closings with a median price of $326,600- 96.88% list to sale price ratio
Data from Mon/Ocean MLS- deemed reliable but not guarenteed. May not reflect all real estate activity.
Beachwood 27 new listings at a median price of $299,900- 11 under contract- 7 closings with a median sales price of $279,000- 97.28% list to sale price ratio
Brick 145 new listings at a median price of $389,850- 61 under contract- 49 closings with a median sales price of $339,900- 95.69% list to sale price ratio
Toms River 211 new listings with a median price of $384,900- 96 under contract- 68 closings with a median sale price of $336,500- 95.31% list to sale price ratio
Island Heights 5 listings with a median price of $598,900- 4 under contract- 1 closing at $390,000- 86.67% list to sale price ratio
Lakehurst 5 new listings with a median sale price of $259,900- 2 under contract- closing at $180,000- 80.00% list to sale price ratio
Manchester 34 new listings with a median price of $347,450- 15 under contract- 14 closings with a median price of $326,600- 96.88% list to sale price ratio
Data from Mon/Ocean MLS- deemed reliable but not guarenteed. May not reflect all real estate activity.
Out and About ~ Local August Festivities
Cape May Designer Showcase– Monday thru Friday, 10-3PM til October 14th. Tour an 1847 sea captains house sponsored by Design NJ Magazine. For info call 609 884-5404.
Aida– August 12th. Elton John’s and Tim Rice’s beautiful musical performed at the Surf Light Theater. For reservations and info 609 422-9477.
Art Show– August 11th, 10-4PM at St. Paul’s United Methodist Church in Bay Head. Artists display / sale.
Circus at the Blue Claws Stadium– Aug 10-12, Entertainment for the whole family. 732 901-7000.
Sunset Sailing Races– Nelson Sailing Center, Island Heights every Wednesday evening. Take a turn at the helm or sit back and relax. 732 270-6510.
Mystery Theater– August 13, 7PM. OC Library Beachwood Branch. Someone has murdered the librarian, come figure it out! 732 244-4573
Scrapbooking Boot Camp– Aug. 22, 6:30PM.OC Library, Toms River Branch. Bring photos and scrap book, other supplies will be provided. 732 349-6200.
Lighthouse History Discussion– Aug 13, 9AM. OC Library Manchester Branch 732 657-7600.
Aida– August 12th. Elton John’s and Tim Rice’s beautiful musical performed at the Surf Light Theater. For reservations and info 609 422-9477.
Art Show– August 11th, 10-4PM at St. Paul’s United Methodist Church in Bay Head. Artists display / sale.
Circus at the Blue Claws Stadium– Aug 10-12, Entertainment for the whole family. 732 901-7000.
Sunset Sailing Races– Nelson Sailing Center, Island Heights every Wednesday evening. Take a turn at the helm or sit back and relax. 732 270-6510.
Mystery Theater– August 13, 7PM. OC Library Beachwood Branch. Someone has murdered the librarian, come figure it out! 732 244-4573
Scrapbooking Boot Camp– Aug. 22, 6:30PM.OC Library, Toms River Branch. Bring photos and scrap book, other supplies will be provided. 732 349-6200.
Lighthouse History Discussion– Aug 13, 9AM. OC Library Manchester Branch 732 657-7600.
Associates of the Month
July 2007
Listing Agent– Richard Lombarski
Sales Agent– Elaine Mac Phee
Buyers Agent– Richard Lombarski
Listing Agent– Richard Lombarski
Sales Agent– Elaine Mac Phee
Buyers Agent– Richard Lombarski
Tuesday, July 3, 2007
Housing Bouncing Back Slowly
As professionals, we are ever vigilant for subtleties that indicate a change in the market. Traditionally, the best sales season has been spring, but sales were slow to start this year.
One of the greatest challenges to the market was buyer and seller loss of confidence. Media reports created generalizations based on national sales statistics which did not apply in all markets.
Ocean county has been spared the worst of the slowdown and in many sectors, local sales and median sale prices are better than last year.
According to data obtained from the Mortgage Bankers Association, from January through May 25th, the 4 week average of applications for new mortgages was at its highest level since early 2006. According to a recent home owner survey, 69% plan renovations to improve the value of their home because they believe the market is turning around.
One of the greatest challenges to the market was buyer and seller loss of confidence. Media reports created generalizations based on national sales statistics which did not apply in all markets.
Ocean county has been spared the worst of the slowdown and in many sectors, local sales and median sale prices are better than last year.
According to data obtained from the Mortgage Bankers Association, from January through May 25th, the 4 week average of applications for new mortgages was at its highest level since early 2006. According to a recent home owner survey, 69% plan renovations to improve the value of their home because they believe the market is turning around.
National Homeownership Month
Since 2002, June has been designated as National Homeownership Month. At the forefront of National Association of Realtors® thinking was the topic of promoting employer assisted housing. Crossroads agents are available to business managers to conduct a home buying workshop at your place of business or answer any questions on employer assisted housing benefits or grants. Affordable and stable housing encourages reliability in employees and minimizes the expense of turnover.
Solid Victory For Landowners
In another victory against an Eminent Domain claim, the State Supreme Court invalidated a redevelopment condemnation action by the township of Paulsboro, NJ which sought to seize private property because it was “underutilized”. In mid June, the Court unanimously ruled that the condemnation criteria was too vague and rejected the argument that municipal governments can take New Jersey homes simply because they believe the land could be put to better use and raise more taxes.
Monmouth/Ocean Sees Fewer Foreclosures
While the media has focused our attention on the sub prime mortgage foreclosure problem across the country and around the state, Ocean and Monmouth Counties are not seeing the same trend.
According to Jeff Otteau, President of Otteau Valuation Group, many of the sub prime foreclosures we are hearing about now, were closed in 2005. After 2 years, the interest rates are reset and people are unable to afford their mortgage payments.
Statewide, sub prime mortgages in 2005 were 23% of all mortgages, while Monmouth county was 17% and Ocean 19%. “Fewer homeowners in Monmouth and Ocean entered into these loans, so the fallout is far less than it has been across the state and the nation”, said Otteau. The FHA is working on alternative loan programs to sub prime.
According to Jeff Otteau, President of Otteau Valuation Group, many of the sub prime foreclosures we are hearing about now, were closed in 2005. After 2 years, the interest rates are reset and people are unable to afford their mortgage payments.
Statewide, sub prime mortgages in 2005 were 23% of all mortgages, while Monmouth county was 17% and Ocean 19%. “Fewer homeowners in Monmouth and Ocean entered into these loans, so the fallout is far less than it has been across the state and the nation”, said Otteau. The FHA is working on alternative loan programs to sub prime.
North Dover Luxury Mid Year Report
Our Mid-Year Report of Toms River North Dover Luxury Market will be ready for mailing by July 10th. MLS statistics show more single family and adult community homes closed in 2007 than in 2006. If you would like a copy of this report, please call our office— 732 244-2200.
Check Open House Scedule On-Line
It’s summer and most realtors take advantage of the fine weather to promote their listings through open houses. While we still advertise in local newspapers, it is becoming increasingly easier to choose which houses you would like to preview by searching on-line. Our site, wwwcrossroadsrealtynj.com has a page featuring all our open houses. Our Monmouth/Ocean MLS also now provides this service so buyers can check the open houses of all Realtor® members. Go to www.momls.com to see this new feature.
Out and About ~ Local July Festivities
Ocean County Fair-July 10-15 at Airport Fair grounds, Route 530 in Berkeley. Lots of fun things for the whole family. Info call 732 914-9466
Garden Tour of Brick-July 10th, 10-3PM Starts at Havens Homestead Museum, 521 Herbertsville Road. For information call 732 785-2500.
Lavallette Flea Market– July 14th, All Day. Street Fair, many vendors. Info call 732 793-3310.
Community Chorus of OC College– July 22, 2PM. A fun performance of Cole Porter and George Gershwin. Call for more info 732 255-0500.
Ocean County Library Summer Programs– Library services are more active than ever in the summer. Call any branch for more info and to find out other programs of interest for the whole family.
Toms River Branch– July 13, 7:30PM. Bring a chair for a free concert– TR Municipal Band.
Manchester Branch– July 18, 7PM. Meet WABC TV meteorologist Bill Evans and hear about his first novel, Category 7. Info 732 657-7600
All Seaside Beaches FREE Weds. and Thurs. ‘til Labor Day w/ Free movie on the beach Thurs PM
Garden Tour of Brick-July 10th, 10-3PM Starts at Havens Homestead Museum, 521 Herbertsville Road. For information call 732 785-2500.
Lavallette Flea Market– July 14th, All Day. Street Fair, many vendors. Info call 732 793-3310.
Community Chorus of OC College– July 22, 2PM. A fun performance of Cole Porter and George Gershwin. Call for more info 732 255-0500.
Ocean County Library Summer Programs– Library services are more active than ever in the summer. Call any branch for more info and to find out other programs of interest for the whole family.
Toms River Branch– July 13, 7:30PM. Bring a chair for a free concert– TR Municipal Band.
Manchester Branch– July 18, 7PM. Meet WABC TV meteorologist Bill Evans and hear about his first novel, Category 7. Info 732 657-7600
All Seaside Beaches FREE Weds. and Thurs. ‘til Labor Day w/ Free movie on the beach Thurs PM
Keeping You Informed About the Housing Market!
June Market Activity-
Beachwood 21 New listings with an average price of $325,000, 10 under contact, 17 Closings at an average price of $300,000. List price to sale price ratio= 97.89%.
Brick 140 New listings with an average price of $399,900, 76 under contract, 50 closings at an average sale price of $357,750. List to sale price ratio= 95.67%.
Toms River 179 New listings with an average price of $439,000, 81 under contract, 72 closings at an average price of $369,160. List price to sale price ratio= 95.50%.
Island Heights 5 New listings with an average price of $1,075,000, 1 under contract, 1 closing at $325,000. List to sale price ratio= 92.86%.
Lakehurst 7 New listings with an average price of $269,900, 3 under contract, 1 closing at $258,000. List to sale price ratio= 99.71%.
Manchester 28 New listings with an average price of $322,500, 15 under contract, 9 closings at an average price of $285,000. List to sale price ratio= 96.79%.
Berkeley Township Adult Communities
Holiday City
Berkeley 102 listings, low $128,900/274,900 high
13 sales, low $117,000/230,000 high
91 Average days on the market
Carefree 50 listings, low $145,900/239,900 high
3 sales, low $135,000/149,900 high
269 avarage days on the market
Holiday Heights 45 listings, low $163,900/389,000 high
7 sales, low $172,000/290,000 high
154 average days on the market
South 71 listings, low $149,900/269,900 high
7 sales, low $165,000/180,000 high
121 average days on the market
West 58 listings, low $129,900/326,000 high
2 sales, low $177,500/205,000 high
61 average days on the market
Silver Ridge Park
East 16 listings, low $134,900/236,900 high
1 sale, low $187,000/187,000 high
3 avarage days on the market
North 12 listings, low $164,900/289,900 high
1 sale, $186,000
220 days on the market
West 31 listings, low $139,900/247,900 high
2 sales, low $117,500/205,000 high
109 average days on the market
Westerly 23 listings, low $143,900/269,900 high
2 sales, low $190,000/220,000 high
41 average days on the market
Information from Monmouth/Ocean MLS– Deemed reliable but not guaranteed– May not reflect all real estate activity in market.
Beachwood 21 New listings with an average price of $325,000, 10 under contact, 17 Closings at an average price of $300,000. List price to sale price ratio= 97.89%.
Brick 140 New listings with an average price of $399,900, 76 under contract, 50 closings at an average sale price of $357,750. List to sale price ratio= 95.67%.
Toms River 179 New listings with an average price of $439,000, 81 under contract, 72 closings at an average price of $369,160. List price to sale price ratio= 95.50%.
Island Heights 5 New listings with an average price of $1,075,000, 1 under contract, 1 closing at $325,000. List to sale price ratio= 92.86%.
Lakehurst 7 New listings with an average price of $269,900, 3 under contract, 1 closing at $258,000. List to sale price ratio= 99.71%.
Manchester 28 New listings with an average price of $322,500, 15 under contract, 9 closings at an average price of $285,000. List to sale price ratio= 96.79%.
Berkeley Township Adult Communities
Holiday City
Berkeley 102 listings, low $128,900/274,900 high
13 sales, low $117,000/230,000 high
91 Average days on the market
Carefree 50 listings, low $145,900/239,900 high
3 sales, low $135,000/149,900 high
269 avarage days on the market
Holiday Heights 45 listings, low $163,900/389,000 high
7 sales, low $172,000/290,000 high
154 average days on the market
South 71 listings, low $149,900/269,900 high
7 sales, low $165,000/180,000 high
121 average days on the market
West 58 listings, low $129,900/326,000 high
2 sales, low $177,500/205,000 high
61 average days on the market
Silver Ridge Park
East 16 listings, low $134,900/236,900 high
1 sale, low $187,000/187,000 high
3 avarage days on the market
North 12 listings, low $164,900/289,900 high
1 sale, $186,000
220 days on the market
West 31 listings, low $139,900/247,900 high
2 sales, low $117,500/205,000 high
109 average days on the market
Westerly 23 listings, low $143,900/269,900 high
2 sales, low $190,000/220,000 high
41 average days on the market
Information from Monmouth/Ocean MLS– Deemed reliable but not guaranteed– May not reflect all real estate activity in market.
Out and About ~ Local July Festivities
Ocean County Fair-July 10-15 at Airport Fair grounds, Route 530 in Berkeley. Lots of fun things for the whole family. Info call 732 914-9466
Garden Tour of Brick-July 10th, 10-3PM Starts at Havens Homestead Museum, 521 Herbertsville Road. For information call 732 785-2500.
Lavallette Flea Market– July 14th, All Day. Street Fair, many vendors. Info call 732 793-3310.
Community Chorus of OC College– July 22, 2PM. A fun performance of Cole Porter and George Gershwin. Call for more info 732 255-0500.
Ocean County Library Summer Programs– Library services are more active than ever in the summer. Call any branch for more info and to find out other programs of interest for the whole family.
Toms River Branch– July 13, 7:30PM. Bring a chair for a free concert– TR Municipal Band.
Manchester Branch– July 18, 7PM. Meet WABC TV meteorologist Bill Evans and hear about his first novel, Category 7. Info 732 657-7600
All Seaside Beaches FREE Weds. and Thurs. ‘til Labor Day w/ Free movie on the beach Thurs PM
Garden Tour of Brick-July 10th, 10-3PM Starts at Havens Homestead Museum, 521 Herbertsville Road. For information call 732 785-2500.
Lavallette Flea Market– July 14th, All Day. Street Fair, many vendors. Info call 732 793-3310.
Community Chorus of OC College– July 22, 2PM. A fun performance of Cole Porter and George Gershwin. Call for more info 732 255-0500.
Ocean County Library Summer Programs– Library services are more active than ever in the summer. Call any branch for more info and to find out other programs of interest for the whole family.
Toms River Branch– July 13, 7:30PM. Bring a chair for a free concert– TR Municipal Band.
Manchester Branch– July 18, 7PM. Meet WABC TV meteorologist Bill Evans and hear about his first novel, Category 7. Info 732 657-7600
All Seaside Beaches FREE Weds. and Thurs. ‘til Labor Day w/ Free movie on the beach Thurs PM
Tuesday, June 19, 2007
Berkeley Township Adult Community May Sales
Holiday City
Berkeley 82 Listings $109,000-284,900
10 Closings $120,000-226,000
Carefree 50 Listings $145,900-255,000
3 Closings $147,000-177,500
Holiday Heights 40 Listings $164,900-388,900
0 Closings $0000/0000
South 62 Listings $159,000-274,000
8 Closings $150,000-280,000
West 56 Listings $139,900-304,900
11 Closings $145,000-325,000
Silver Ridge Park
East 13 Listings $139,000-236,900
3 Closings $135,000-299,500
North 10 Listings $173,000-289,900
0 Closings $0000 /0000
West 23 Listings $130,000-235,000
5 Closings $136,500-198,750
Westerly 19 Listings $152,900-264,900
4 Closings $143,000-244,000
Information from Monmouth/Ocean MLS– Deemed reliable but not guaranteed– May not reflect all real estate activity in market
Berkeley 82 Listings $109,000-284,900
10 Closings $120,000-226,000
Carefree 50 Listings $145,900-255,000
3 Closings $147,000-177,500
Holiday Heights 40 Listings $164,900-388,900
0 Closings $0000/0000
South 62 Listings $159,000-274,000
8 Closings $150,000-280,000
West 56 Listings $139,900-304,900
11 Closings $145,000-325,000
Silver Ridge Park
East 13 Listings $139,000-236,900
3 Closings $135,000-299,500
North 10 Listings $173,000-289,900
0 Closings $0000 /0000
West 23 Listings $130,000-235,000
5 Closings $136,500-198,750
Westerly 19 Listings $152,900-264,900
4 Closings $143,000-244,000
Information from Monmouth/Ocean MLS– Deemed reliable but not guaranteed– May not reflect all real estate activity in market
Keeping You Informed About the Housing Market
May Sales - Single Family Homes
New Listings/Median Price/Contract/Closed / Median Price
Beachwood 32/$309,950 12 13/$259,000
Brick 186/$393,500 71 68/$315,000
Toms River 256/$387,000 99 73/$345,000
Island Heights 7/$385,000 2 3/$467,500
Lakehurst 6/269,900 2 5/215,000
Manchester 48/$384,900 17 14/$310,450
Statistics from Mon/Ocean MLS- May not reflect all activity in market
New Listings/Median Price/Contract/Closed / Median Price
Beachwood 32/$309,950 12 13/$259,000
Brick 186/$393,500 71 68/$315,000
Toms River 256/$387,000 99 73/$345,000
Island Heights 7/$385,000 2 3/$467,500
Lakehurst 6/269,900 2 5/215,000
Manchester 48/$384,900 17 14/$310,450
Statistics from Mon/Ocean MLS- May not reflect all activity in market
More Home Owners Turn to Realtors® To Sell
According to a May 2007 report from the National Association of Realtors®, 91% of homes were sold by Realtors® in 2006. Of the 9% sold by owners, it is estimated that as many as half were sold to friends and family members rather than through ads in newspapers or calls on lawn signs.
As the market tightens, it’s no wonder that most sellers will hire a Realtor® to market their home. The listing is immediately promoted on many networked web sites, the listing agency pays for all advertising, the seller has no out of pocket expense to employ top professionals and Realtors have a pool of buyers.
In NJ, Realtor® buyer services are FREE. This includes saving the buyer gas by driving them to previews, negotiating the contract, providing the name of reliable inspectors, attorneys and home warranty and information on new listings as they become available.
As the market tightens, it’s no wonder that most sellers will hire a Realtor® to market their home. The listing is immediately promoted on many networked web sites, the listing agency pays for all advertising, the seller has no out of pocket expense to employ top professionals and Realtors have a pool of buyers.
In NJ, Realtor® buyer services are FREE. This includes saving the buyer gas by driving them to previews, negotiating the contract, providing the name of reliable inspectors, attorneys and home warranty and information on new listings as they become available.
DEP Expands Waterway Regulations
To celebrate Earth Day this past April, the Department of Environmental Protection announced a proposal which would greatly expand protections of 900 miles of waterways in New Jersey. A “category 1” status to 15 river segments would impose a 300-foot development restriction buffers to protect drinking water and rare species habitat. The rule will be subject to public comment and includes parts of the Toms River in Toms River.
House Committee Passes FHA Reform Act
In the wake of a much reported sub-prime lending crisis, the US House Financial Services Committee stepped up to pass legislation allowing the FHA to offer buyers a safer alternative to risky mortgage products. The Expanding American Homeownership Act of 2007 will increase loan limits, eliminate the minimal 3% cash down payment and give the FHA the flexibility to provide risk based pricing. The bill goes now to the House for a vote.
First Time Buyers - Pre-Qualification vs Pre-Approved
Just thinking about owning a home of your own is exciting and a little daunting, but with professional assistance, it can be a whole lot of fun.
The first consideration must be financial– or how will you know what you can afford? Most sellers will not even consider your contract without a pre-qual or pre-approval. A pre-qualification is a professional estimate of what you can afford. A mortgage representative will check your credit, but will require no documentation as to assets. A pre-approval is issued once you have actually applied for a mortgage, provided the mortgage rep with documentation of income and assets and the application has been underwritten by the mortgage company.
This is like cash in hand once you find your dream home and can give you an edge in negotiating your price.
The first consideration must be financial– or how will you know what you can afford? Most sellers will not even consider your contract without a pre-qual or pre-approval. A pre-qualification is a professional estimate of what you can afford. A mortgage representative will check your credit, but will require no documentation as to assets. A pre-approval is issued once you have actually applied for a mortgage, provided the mortgage rep with documentation of income and assets and the application has been underwritten by the mortgage company.
This is like cash in hand once you find your dream home and can give you an edge in negotiating your price.
www.NorthDoverRealEstate.com
A team of 10 agents from Crossroads Toms River West Office have joined to promote this luxury section of homes in Toms River. For a gallery of listings and feature articles on North Dover, visit our new web site.
Looking For 192 Millionaires
Through our cooperation agreement with other members of Ocean/Monmouth Multiple Listing Service, we have 192 waterfront homes in Ocean County on sale for more than $1 million. Looking for something more special? Fifty-nine homes are listed for more than $2 million and range to $8.5 million! For the discriminating buyer, yet more modest in their desires, waterfront listings start at $349,000 in our area and often come furnished. If the price is right, some sellers will add the boat in the sale!
Out and About ~ Local June Festivities
21st Annual Seafood Festival-June 9+10 from 10AM. Culinary celebration of seafood and many family activities. In Belmar Info call 732 681-3700.
Get Ready For Bed– June 13th, 7PM. Ages 2-7. Come in your pj’s for bedtime stories. OC Library– Washington St., Toms River. Info 732 249-6200
Arts and Crafts By the Sea– June 16th All Day
Seaside Heights Boardwalk– Crafts, Jewelry + More!
Island Singers– June 19th, 7PM. Chorus established in 1972 with 17-80 year olds. OC Library, Washington St, Toms River. Show tunes. Info 732 349-6200
New Jersey State Fair-June 21-22. Over 150 rides, and lots of FREE entertainment. At the Meadowlands. Info at 973 450-1070.
Blueberry Bash-June 23-24 at Terhune Orchards. Pick your own, enter your recipe in the Bake-Off, wagon and pony rides, farm store. 609 924-2310.
Talent Show– June 24, 9-3PM. Perform, stay to watch movies on the beach after dark. Big Joe Harry’s Info 732 899-6686.
Father’s Day Dinner Show– June 17 at the Holiday Inn, Manahawkin. The Rat Pack Trio 609 481-6117
Get Ready For Bed– June 13th, 7PM. Ages 2-7. Come in your pj’s for bedtime stories. OC Library– Washington St., Toms River. Info 732 249-6200
Arts and Crafts By the Sea– June 16th All Day
Seaside Heights Boardwalk– Crafts, Jewelry + More!
Island Singers– June 19th, 7PM. Chorus established in 1972 with 17-80 year olds. OC Library, Washington St, Toms River. Show tunes. Info 732 349-6200
New Jersey State Fair-June 21-22. Over 150 rides, and lots of FREE entertainment. At the Meadowlands. Info at 973 450-1070.
Blueberry Bash-June 23-24 at Terhune Orchards. Pick your own, enter your recipe in the Bake-Off, wagon and pony rides, farm store. 609 924-2310.
Talent Show– June 24, 9-3PM. Perform, stay to watch movies on the beach after dark. Big Joe Harry’s Info 732 899-6686.
Father’s Day Dinner Show– June 17 at the Holiday Inn, Manahawkin. The Rat Pack Trio 609 481-6117
Monday, May 7, 2007
Keeping You Informed About the Housing Market!
Single Family Homes in Ocean County, New Jersey
Beachwood
April: 38 New Listings, 23 Under Contract, 15 Closed at a Median Price of $272,500
Brick
April: 192 New Listings, 113 Under Contract, 74 Closed at a Median Price of $322,500
Toms River
April: 233 New Listings, 116 Under Contract, 80 Closed at a Median Price of $350,000
Island Heights
April: 6 New Listings, 3 Under Contract, 0 Closed
Lakehurst
April: 3 New Listings, 5 Under Contract, 0 Closed
Manchester
April: 49 New Listings, 17 Under Contract, 18 Closed at a Median Price of $320,250
Berkeley Township Adult Communities for the Month of April
Holiday City
Berkeley: 89 Total Listings, Lowest Price of $124,000 and Highest Price of $284,900, 9 Closed with the Lowest Price of $135,000 and the Highest Price of $199,000, Average Days on the Market was 53
Carefree: 55 Total Listings, Lowest Price of $145,900 and Highest Price of $259,900, 8 Closed with the Lowest Price of $125,000 and the Highest Price of $221,000, Average Days on the Market was 89
Heights: 37 Total Listings, Lowest Price of $169,900 and Highest Price of $388,900, 4 Closed with the Lowest Price of $170,000 and the Highest Price of $325,000, Average Days on the Market was 100
South: 57 Total Listings, Lowest Price of $154,888 and Highest Price of $279,000, 6 Closed with the Lowest Price of $145,000 and the Highest Price of $239,900, Average Days on the Market was 102
West: 56 Total Listings, Lowest Price of $137,000 and Highest Price of $410,000, 4 Closed with the Lowest Price of $142,500 and the Highest Price of $177,500, Average Days on the Market was 98
Silver Ridge Park
East: 9 Total Listings, Lowest Price of $145,000 and Highest Price of $193,000, 4 Closed with the Lowest Median Price of $165,000 and the Highest Median Price of $239,900, Average Days on the Market was 21
North: 12 Total Listings, Lowest Price of $162,900 and Highest Price of $235,000, 2 Closed with the Lowest Price of $179,000 and the Highest Price of $195,000, Average Days on the Market was 27
West: 17 Total Listings, Lowest Price of $129,000 and the Highest Price of $225,000, 3 Closed with the Lowest Price of $164,500 and the Highest Price of $220,000, Average Days on the Market was 11
Westerly: 19 Total Listings, Lowest Price of $149,000 and the Highest Price of $296,000, 4 Closed with the Lowest Price of $190,000 and the Highest Price of $247,500, Average Days on the Market was 53
Information from Monmouth/Ocean MLS– Deemed reliable but not guaranteed– May not reflect all real estate activity in market
Beachwood
April: 38 New Listings, 23 Under Contract, 15 Closed at a Median Price of $272,500
Brick
April: 192 New Listings, 113 Under Contract, 74 Closed at a Median Price of $322,500
Toms River
April: 233 New Listings, 116 Under Contract, 80 Closed at a Median Price of $350,000
Island Heights
April: 6 New Listings, 3 Under Contract, 0 Closed
Lakehurst
April: 3 New Listings, 5 Under Contract, 0 Closed
Manchester
April: 49 New Listings, 17 Under Contract, 18 Closed at a Median Price of $320,250
Berkeley Township Adult Communities for the Month of April
Holiday City
Berkeley: 89 Total Listings, Lowest Price of $124,000 and Highest Price of $284,900, 9 Closed with the Lowest Price of $135,000 and the Highest Price of $199,000, Average Days on the Market was 53
Carefree: 55 Total Listings, Lowest Price of $145,900 and Highest Price of $259,900, 8 Closed with the Lowest Price of $125,000 and the Highest Price of $221,000, Average Days on the Market was 89
Heights: 37 Total Listings, Lowest Price of $169,900 and Highest Price of $388,900, 4 Closed with the Lowest Price of $170,000 and the Highest Price of $325,000, Average Days on the Market was 100
South: 57 Total Listings, Lowest Price of $154,888 and Highest Price of $279,000, 6 Closed with the Lowest Price of $145,000 and the Highest Price of $239,900, Average Days on the Market was 102
West: 56 Total Listings, Lowest Price of $137,000 and Highest Price of $410,000, 4 Closed with the Lowest Price of $142,500 and the Highest Price of $177,500, Average Days on the Market was 98
Silver Ridge Park
East: 9 Total Listings, Lowest Price of $145,000 and Highest Price of $193,000, 4 Closed with the Lowest Median Price of $165,000 and the Highest Median Price of $239,900, Average Days on the Market was 21
North: 12 Total Listings, Lowest Price of $162,900 and Highest Price of $235,000, 2 Closed with the Lowest Price of $179,000 and the Highest Price of $195,000, Average Days on the Market was 27
West: 17 Total Listings, Lowest Price of $129,000 and the Highest Price of $225,000, 3 Closed with the Lowest Price of $164,500 and the Highest Price of $220,000, Average Days on the Market was 11
Westerly: 19 Total Listings, Lowest Price of $149,000 and the Highest Price of $296,000, 4 Closed with the Lowest Price of $190,000 and the Highest Price of $247,500, Average Days on the Market was 53
Information from Monmouth/Ocean MLS– Deemed reliable but not guaranteed– May not reflect all real estate activity in market
Out and About ~ Local May Festivities
Annual Fishing Contest – May 5th, 8-2PM. Lake Shenandoah County Park. Info call 609-971-3085.
Garden State Philharmonic – May 6th, 3PM. Best Sound of Broadway at the Ocean First Theater in Stafford Township Arts Center. Information 609 489-8600.
Benefit for Toms River Fire Company #1 – May 6th, 1-3PM. Food, massages, health screenings, surprise gifts. LaBeute Salon at the New Orchards Dover Shopping Center, Route 37 West. 732 349-0144
12th Annual Adult Fair and Picnic – May 16th, 10-2PM. Free for Seniors. 652 Garfield Ave, Toms River
Sailing Round the World – May 19th, 2PM. George Smith and Janet Murphy lecture on their 17 year sailing adventure circling the globe. Barnegat Lighthouse State Park. Information call 609-494-2016
Ocean Fun Day – May 19th, 11-3PM. Island Beach State Park. Free admission, parking, nature tours.
18th Annual Chili/Salsa Cook Off – May 19th, 11-5PM. Come ready to sample the entries! Join the fun! Washington Street in Toms River.
Spring Garden Tour – June 2nd, 10-4PM. Deep Cut Gardens, Red Hill Road, Middletown. Just beautiful!
Garden State Philharmonic – May 6th, 3PM. Best Sound of Broadway at the Ocean First Theater in Stafford Township Arts Center. Information 609 489-8600.
Benefit for Toms River Fire Company #1 – May 6th, 1-3PM. Food, massages, health screenings, surprise gifts. LaBeute Salon at the New Orchards Dover Shopping Center, Route 37 West. 732 349-0144
12th Annual Adult Fair and Picnic – May 16th, 10-2PM. Free for Seniors. 652 Garfield Ave, Toms River
Sailing Round the World – May 19th, 2PM. George Smith and Janet Murphy lecture on their 17 year sailing adventure circling the globe. Barnegat Lighthouse State Park. Information call 609-494-2016
Ocean Fun Day – May 19th, 11-3PM. Island Beach State Park. Free admission, parking, nature tours.
18th Annual Chili/Salsa Cook Off – May 19th, 11-5PM. Come ready to sample the entries! Join the fun! Washington Street in Toms River.
Spring Garden Tour – June 2nd, 10-4PM. Deep Cut Gardens, Red Hill Road, Middletown. Just beautiful!
Notes From All Over…
We can expect Washington to respond to the subprime mortgage crisis with tougher Federal Trade Comm. laws on deceptive practices by mortgage lenders and support from the FED to get states to adopt uniform guidelines.
FHA which specializes in low and moderate mortgage borrowers, hopes to regain some of the subprime market, having lost out because of red tape and lack of flexibility in loan practices.
Nationally, new home inventory levels are at an 8.1 month supply, marking the highest level since January 1991.
FHA which specializes in low and moderate mortgage borrowers, hopes to regain some of the subprime market, having lost out because of red tape and lack of flexibility in loan practices.
Nationally, new home inventory levels are at an 8.1 month supply, marking the highest level since January 1991.
Waterfront Homes
With more inventory than ever, it’s a great time to consider buying a vacation home. Insurance premiums add significantly to the cost of owning a home on the water. Get insurance quotes early so you know what the cost will be.
“Green” Mortgages Mean More Than Money!
Hybrid cars, organic foods, natural clothing fibers– going “green” is the 21st century megatrend that’s here to stay. The homebuilding industry has been quietly converting to solar and wind power, energy efficient appliances and using eco-friendly building materials that point to a “green” future.
Starting in 1995, these attempts to conserve energy and natural resources were recognized for their effect of reducing monthly utility costs and spawned the Energy Efficient Mortgage–EEM.
The FHA EEM covers upgrades for new and existing homes and is available in all 50 states.
Home buyers can count the extra income from energy savings toward their income-to-debt ratio, allowing them to qualify for a larger loan and often a better interest rate.
Call our Toms River West office at 732-244-2200 for more information on EEMs.
Starting in 1995, these attempts to conserve energy and natural resources were recognized for their effect of reducing monthly utility costs and spawned the Energy Efficient Mortgage–EEM.
The FHA EEM covers upgrades for new and existing homes and is available in all 50 states.
Home buyers can count the extra income from energy savings toward their income-to-debt ratio, allowing them to qualify for a larger loan and often a better interest rate.
Call our Toms River West office at 732-244-2200 for more information on EEMs.
Property Tax Bill Signed
In early April Governor Corzine signed a bill for property tax relief that he and other Democrats call the centerpiece for “reining in the top policy issue for state residents”. The bill will generate credits on municipal taxes, up to 20% for home owners with less than $100,000 annual income. Also included is a minor spending cap on local government spending. Critics of the bill cite the $2.3 billion cost to the state for the credits and wonder if the bill can be sustained for more than one year.
Great Move-Up Market
Spring is usually the hottest time of year in home sales. Sellers put their property on the market just as the daffodils bloom for the best curb appeal! With inventory at a 5 year high, and mortgage rates still reasonable, we are calling this a Great Move-Up Market. Investors have mostly moved on to other income sources, leaving lots of choice for buyers. Your home may sell for less, but you will save money on your purchase, maybe with a lower interest rate.
New Construction? New Buying Tips!
As the housing market has changed to a cooling off cycle, developers have also changed their strategies. Rather than build new developments on speculation and give buyers their pick of new homes, builders now rely on preconstruction sales to determine whether or not to break ground. With prices still expected to go down in the resale market, it’s important to protect your investment. For buyers thinking about a preconstruction purchase:
· Negotiate an exit strategy within the contract. Lead times have been growing longer, so it is not unreasonable to state a “break ground” date, which if not adhered to, releases you from the contract.
· Ask for an interest bearing account for your deposit until ground breaking.
· Make sure all changes to the original contract are in writing with color and style selections specified.
· Based on the current market, builders may be offering sales incentives to lure buyers. Check often for model price reductions.
· Negotiate an exit strategy within the contract. Lead times have been growing longer, so it is not unreasonable to state a “break ground” date, which if not adhered to, releases you from the contract.
· Ask for an interest bearing account for your deposit until ground breaking.
· Make sure all changes to the original contract are in writing with color and style selections specified.
· Based on the current market, builders may be offering sales incentives to lure buyers. Check often for model price reductions.
Friday, April 6, 2007
Notes From All Over
After a slow 2006, remodelers can look forward to more activity as 2/3rds of US homes are more than 25 years old. By 2015, remodeling will account for almost half of home construction work.
Florida is the only state in the nation with a negative population – more people are moving out than are moving in. Many, originally from NJ, are coming back to be close to families and for excellent medical care.
Nationwide, 30% of buyers and 45% of 1st time buyers make no down payment on their home purchase.
Florida is the only state in the nation with a negative population – more people are moving out than are moving in. Many, originally from NJ, are coming back to be close to families and for excellent medical care.
Nationwide, 30% of buyers and 45% of 1st time buyers make no down payment on their home purchase.
Crossroads Insurance
In order to offer complete home buying services, Crossroads has opened an insurance division. Together with Home Capital Network, our mortgage company, and Home Title Agency for title work, the home buying process is simplified.
What Women Really Want in Home Design
Because women make 83% of US consumer spending decisions, designing homes for women was an important topic at the International Builders’ Show 2007.
These suggestions top the list of must haves.
* De-stressing areas – luxurious baths, exercise rooms, sauna or steam showers and fabulous outdoor gardens.
* Rear foyers – not a mudroom– complete w/ floor to ceiling storage for seasonal items.
* Large kitchens w/ customized work stations and kid sized refrigerators and toy storage.
* Closet organization systems.
* Lots of natural light framed by beautiful windows.
* Maintenance-free exteriors.
* Home based business is a woman’s ideal. Provide office space wired for cable and internet w/ a reading nook
* Every bedroom w/ private bath.
These suggestions top the list of must haves.
* De-stressing areas – luxurious baths, exercise rooms, sauna or steam showers and fabulous outdoor gardens.
* Rear foyers – not a mudroom– complete w/ floor to ceiling storage for seasonal items.
* Large kitchens w/ customized work stations and kid sized refrigerators and toy storage.
* Closet organization systems.
* Lots of natural light framed by beautiful windows.
* Maintenance-free exteriors.
* Home based business is a woman’s ideal. Provide office space wired for cable and internet w/ a reading nook
* Every bedroom w/ private bath.
NJ Tax Reform Moves Slowly
In February, the State Assembly approved property tax relief in the form of a “caps/credit” bill that will issue a 20% state paid credit on most property tax bills. Tied with that bill, was a 4% “cap” on municipal spending. The credits, which will vary by household, will cost the state more than $2.3 billion. This will be paid from half of last summer’s sales tax increase and a reduction of the current property tax rebate program. Governor Corzine approves the bill as part of the state budget overhaul.
Good Spring Sales Season Ahead
By all indications, spring should prove to be a robust market for buyers and sellers. Low mortgage rates and the large inventory of houses for sale is temping buyers to get out there and buy. Traditionally, spring brings sellers the advantage of verdant curb appeal and optimism in home ownership.
Indications are that prices are stabilizing, but correct pricing is crucial to attracting many buyers. Upgrades and cleanliness add to a home’s appeal.
Indications are that prices are stabilizing, but correct pricing is crucial to attracting many buyers. Upgrades and cleanliness add to a home’s appeal.
What Is the Subprime Market?
No doubt you have heard that there are an increasing number of mortgage foreclosures of residential homes and this is adding havoc to the already stressed housing market. However, it is important to note that the problem is limited to one segment of the market – subprime borrowers. “Subprime” refers to borrowers with weak credit and where “creative financing” was used to secure a loan.
In the past 6 years, creative mortgage products - 80/20 loans, no doc loans, 100-125% financing – are about 7% of the loan market, most of which have an adjustable rate of interest. Now that these loans have passed their term of fixed rate (the loans are locked in for an introductory period), monthly interest payments fluctuate. Buyers reported monthly payment increases in double digit percentages.
With home prices falling, new owners who would rather sell than be foreclosed, cannot get enough to pay off their mortgage, creating a short sale.
Default affects 3% of mortgage lenders. It is expected that there will be 1.5 million foreclosures this year and tighter standards in lending.
In the past 6 years, creative mortgage products - 80/20 loans, no doc loans, 100-125% financing – are about 7% of the loan market, most of which have an adjustable rate of interest. Now that these loans have passed their term of fixed rate (the loans are locked in for an introductory period), monthly interest payments fluctuate. Buyers reported monthly payment increases in double digit percentages.
With home prices falling, new owners who would rather sell than be foreclosed, cannot get enough to pay off their mortgage, creating a short sale.
Default affects 3% of mortgage lenders. It is expected that there will be 1.5 million foreclosures this year and tighter standards in lending.
Friday, March 30, 2007
Berkeley Township Adult Communities- 1st Quarter Market Update
In August 2005, the Ocean County housing market began a price readjustment stimulated by double digit inflationary prices for the 5 years prior. The effect of this was decreasing prices, an increasing inventory of homes for sale, longer days on the market and stronger buyer negotiations. We believe by mid-summer, prices should reflect a stable holding pattern and by 2008, should begin to see a modest appreciation of homes based on 2007 prices. With inventory still adjusting to this downturn in the market, correct pricing is crucial to attract potential buyers. Buyers continue to appreciate upgrades of newer windows, neutral décor and a very clean, well maintained appearance.
Spring is the best season to list your home for sale. Curb appeal is enhanced by flowering trees and shrubs and the feeling of optimism surrounds us. If you are thinking of selling, call to discuss a comprehensive marketing plan including extensive internet exposure and Crossroads’ proven sale strategies.
Holiday City
Berkeley- Closed 25 Low $117,000 High $310,000
Carefree- Closed 12 Low $134,000 High $194,000
Holiday Heights- Closed 10 Low $155,000 High $319,000
South- Closed 16 Low $147500 High $225,000
West- Closed 12 Low $110,000 High $388,000
Compared to the first quarter of 2006 with 103 sales, the market has slowed by 25%+. The average days on the market have lengthened from 68 in ‘06 to 87 in ‘07.
Silver Ridge Park
East- Closed 3 Low $110,000 High $155,000
North- Closed 4 Low $175,000 High $217,000
West- Closed 9 Low $126,775 High $210,000
Westerly- Closed 7 Low $125,000 High $219,000
Average days on the market has gone from 74 in ’06 to 105 in ’07. Average sales price in ’06 was $185,539, $169,000 in “07.
Available For Sale By Model on March 28, 2007
Sarasota 18 homes, Lakeview 83 homes, Sussex 19 homes,
Monterey 3 homes, Manhattan 6 homes, Chatham 10homes,
Shoreview 21 homes, Castle Harbor 23homes, Rochester 2 homes
Capri 45 homes, Yellowstone 36 homes, Yorkshire 20 homes,
Greenwich 2 homes, Lexington 7 homes, Glen Ridge 5 homes
A total of 297 Holiday City Homes For Sale
A total of 65 Silver Ridge Park Homes For Sale
Friday, March 9, 2007
Notes From All Over…
In data reported from the US Census Bureau, the number of vacant houses for sale nationally jumped more than 30% during the 4th quarter 2006, to about 1.9 million.
It is expected that new mortgages will value in the $2.3 trillion in 2007. The record, in 2003, was $3.8 trillion.
According to Forbes, the most expensive US house for sale is in Bozeman, Montana. The 55,000 sq. ft. ski getaway called “The Pinnacle” is listed for $155 million.
NJ has the 4th most expensive rental housing market in the US.
It is expected that new mortgages will value in the $2.3 trillion in 2007. The record, in 2003, was $3.8 trillion.
According to Forbes, the most expensive US house for sale is in Bozeman, Montana. The 55,000 sq. ft. ski getaway called “The Pinnacle” is listed for $155 million.
NJ has the 4th most expensive rental housing market in the US.
Latest Trends in Home Updates For Buyer Appeal
A nationwide survey of real estate professionals includes a list of home features which are popular among buyers in 2006. As home décor changes with design influence from new products, buyers want the latest, and hopefully, not trendy, home improvements.
As an example, the inability to keep stainless steel appliances, glass-front kitchen cabinets and vessel-style bathroom sinks clean, has caused them to move out of favor with buyers.
Here are what buyers are looking for in 2007:
Glass tile comes in many colors and adds reflective qualities to the kitchen and bath.
Stone compounds for countertops come with bacteria killing agents and cost less than granite.
Home offices and theaters wired for cable and internet.
Storage in pantries & for linens and luggage.
As an example, the inability to keep stainless steel appliances, glass-front kitchen cabinets and vessel-style bathroom sinks clean, has caused them to move out of favor with buyers.
Here are what buyers are looking for in 2007:
Glass tile comes in many colors and adds reflective qualities to the kitchen and bath.
Stone compounds for countertops come with bacteria killing agents and cost less than granite.
Home offices and theaters wired for cable and internet.
Storage in pantries & for linens and luggage.
Another Eminent Domain Case Goes Supreme
A developer in Port Chester, NY had planning board permits to build a CVS pharmacy but also needed approvals from the private company hired by the city to redevelop this blighted zone. The company spokesman overseeing the zone told the developer that he would have to pay $800,000 or a give a 50% stake in the CVS, or they would seize the property under eminent domain and build a Walgreen’s instead. The developer refused, the city initiated action. Now it goes to the high court.
Tax Rules For Rental Properties
Because of current tax laws, if your home has lost value since you bought it, you can not deduct the loss when you sell it. To hedge this, some people consider renting the house for a year so the loss can be applied later.
Not so. IRS rules say that the value of the home at conversion (from owner occupied to a rental), less depreciation during the time it is rented, would be the property’s cost basis for determining a loss. Only further decline while it is a rental can be deducted.
Not so. IRS rules say that the value of the home at conversion (from owner occupied to a rental), less depreciation during the time it is rented, would be the property’s cost basis for determining a loss. Only further decline while it is a rental can be deducted.
Get Ready To Buy Your First Home!
There has never been, in recent years, a better time to consider buying your first house. Mortgage rates are low and housing inventory is abundant. Single family homes and condominiums in many price ranges, with many differing amenities are ready for your consideration. Prepare, so when the right property presents itself, you’ll be ready.
Here are some tips:
Talk to a real estate professional. They will be able to advise you on available properties, costs involved, mortgage, and credit repair if necessary. There is no charge to buyers for these services.
Organize your documents. You will need a pay stub, W-2 and bank statements to apply for a mortgage.
Get preapproved for a mortgage. This will let you know the home you can afford.
Play house. It’s good practice to bank the amount of money you will need each month to own a home.
Consider all costs. The mortgage is not the only cost to home-ownership. Consider that repairs, home improvement, insurance, utility bills and taxes will add to your monthly expense.
Here are some tips:
Talk to a real estate professional. They will be able to advise you on available properties, costs involved, mortgage, and credit repair if necessary. There is no charge to buyers for these services.
Organize your documents. You will need a pay stub, W-2 and bank statements to apply for a mortgage.
Get preapproved for a mortgage. This will let you know the home you can afford.
Play house. It’s good practice to bank the amount of money you will need each month to own a home.
Consider all costs. The mortgage is not the only cost to home-ownership. Consider that repairs, home improvement, insurance, utility bills and taxes will add to your monthly expense.
Notes From All Over…
New rules in the investor market – Buy and Hold. Before investing, compute whether the property can cover itself as a rental for 3 to 5 years - the day of fix and flip is behind us.
According to Brookings, for the first time there are more poor residents in the suburbs than there are in central US cities.
The average US household spends 19% of its budget on transportation, rendering location a key component of housing affordability.
It’s expected that the rate of mortgage delinquencies will be 5% by mid year, highest since 2002.
Most $$$ Home 2006
An English-style, 10,000 sq. ft. home on 63 acres just 5 miles from Manhattan in Alpine, N.J. sold for $58 million and was the 2006 top selling US home. In 2006, homes sales priced over $5 million were up 11% over 2005.
Tips for Pet-Owning Sellers
As adorable as your Fido or Fifi is, not everyone appreciates domesticated animals. Some buyers have a fear or allergy to cats or dogs which will make them flee! Other potential buyers can become so enamored with your pet, they remember the pet, but not your house when they leave! Often, pet owners can not have a lock box because of unruly pet behavior, limiting showings.
Here’s some practical advise to quicken the sale.
Remove pet photos, pet toys, pet bed, etc. from primary areas. Living, dining, bedrooms, and den should be pet neutral. Hide pet food and water bowls during show times. Use air fresheners to neutralize pet odors. Hire professionals to clean any carpet stains. Take pets out for the day during open houses. Repair any signs of pet damage such as scratched doors or chewed moldings.
Here’s some practical advise to quicken the sale.
Remove pet photos, pet toys, pet bed, etc. from primary areas. Living, dining, bedrooms, and den should be pet neutral. Hide pet food and water bowls during show times. Use air fresheners to neutralize pet odors. Hire professionals to clean any carpet stains. Take pets out for the day during open houses. Repair any signs of pet damage such as scratched doors or chewed moldings.
Eminent Domain – Open Space
In late November of 2006, the NJ State Supreme Court endorsed the right of a township to seize a parcel of land slated for development if it wants it for open space. Mount Laurel, N.J. reversed previous approval on a 16 acre/23 lot subdivision because of the potential cost of schooling the children who would live there. The court said limiting the number of potential new school children was a valid reason for the condemnation, underscored by the open space ballot approvals over the years.
Consumers Still Gravitate to Full-Service
According to a 2006 NAR Profile of Home Buyers and Sellers, 83% of sellers use a full service real estate brokerage to handle their home sale. Nine % use a limited service brokerage and 8% use a minimal service broker, such as only listing the property on the local MLS. Of those who used a full service broker, 71% were very satisfied, 24% somewhat satisfied. Fifty percent of sellers using minimal service say they were dissatisfied with their experience.
Friday, March 2, 2007
NJAR Goes To Bat For State Homeowners
On January 26th, 2007, the New Jersey Association of Realtors® distributed a letter to our Governor and all members of the Legislature regarding its concerns of the availability and affordability of homeowner’s insurance. The letter urges the governor to focus on the issue before the situation becomes a crisis. The letter also encourages the legislature to support A3236, a bill that would appropriate $10 million to establish a “New Jersey Catastrophe Fund”. This fund would help to protect the insurance industry in case of a natural disaster.
A representative from the NJAR testified regarding its support for A3236 during the Assembly Financial Institutions and Insurance Committee hearing on January 18th.
The NJAR encourages all homeowners who have had insurance problems to bring it to the attention of their local legislator.
A representative from the NJAR testified regarding its support for A3236 during the Assembly Financial Institutions and Insurance Committee hearing on January 18th.
The NJAR encourages all homeowners who have had insurance problems to bring it to the attention of their local legislator.
Notes From All Over…
Former Federal Reserve Chairman Alan Greenspan announced in an interview in late November 2006 that the “worst of the housing adjustment is over and sales figures have stabilized”. Greenspan is working on an analysis of the effect of mortgage wealth on consumer spending, with data from 1968 to present. The thesis is whether extracted home equity is “acting as a proxy for all types of financing of goods that would have been bought anyway”. It is unclear when the analysis will be complete, but Greenspan’s long history as the FED chairman gives him good perspective to review these statistics.
Digital mapping and associated services are being enhanced by Global Positioning System receivers. This is adding to the quality service Realtors® can offer with neighborhood demographics, relation of home to school, worship, shopping.
REITs focused on offices are likely to outperform those specializing in industrial or retail.
Farm land seems more valuable as it is projected that by 2008, 25% of corn will be used for ethanol production, compared to 6% in 2000.
Realtors® are optimistic that 2007 will be a great sales year!
Digital mapping and associated services are being enhanced by Global Positioning System receivers. This is adding to the quality service Realtors® can offer with neighborhood demographics, relation of home to school, worship, shopping.
REITs focused on offices are likely to outperform those specializing in industrial or retail.
Farm land seems more valuable as it is projected that by 2008, 25% of corn will be used for ethanol production, compared to 6% in 2000.
Realtors® are optimistic that 2007 will be a great sales year!
Commercial Index Rises
The Commercial Leading Indicator for Brokerage Activity, which the NAR uses to measure the commercial real estate market, increased for 6 consecutive quarters showing that continued growth can be expected in the commercial real estate sector. The indicator now is at the highest level since 1990. The index measures 13 variables that reflect future activity. Of the 70-90 million sqft. expected to be absorbed in the 1st quarter 2007, new construction cost $315-325 billion.
National Assn of Realtors® Plans New Ad Year
The National Assn. of Realtors® ‘s national public awareness campaign has given Realtors® an edge as 73% of the public have a more favorable opinion of Realtors® since the ads started. The 2006 campaign focused on the ethic training requirement and was run on radio and TV.
Plans for 2007 include expansion to year round advertising on prime time shows, cable and major league televised sports events. Advertising on Spanish speaking channels will be increased, reflecting the number of qualified Hispanic buyers.
According to a 2006 poll regarding agents’ services, consumers believe:
Realtors® take care of the details of buying and selling a home (68%)
Realtors® are a good source of info regarding financing, inspections (62%)
Realtors® more effectively promote sales than home sellers can (63%)
First Time Buyer Funding/Specialist Available
In real estate terms, a first time buyer is anyone who has not owned a home for 3 years. Special funding is now available for those who qualify. In January and February of 2007, Crossroads Toms River Office extended it's Tuesday and Thursday nights hours from 6-7PM with a first time buyer specialist on duty. Joe Zavatsky, a 29 year veteran of the real estate industry, has helped many people to buy their first home. Mortgage rates are down, inventory is up! All are welcome!
Largest-Ever Real Estate Deal In The Works
The private equity firm of Blackstone Group has agreed to acquire Equity Office Properties Trust, the largest U.S. owner and manager of office buildings which is believed to be one of the biggest real estate deals of all time.
Blackstone agreed to purchase EOPT for $20 billion and to assume $16 billion in debt. The closing is scheduled for early 2007, transforming Equity Office from a publicly held real estate investment trust (REIT) into a private corporation.
Blackstone agreed to purchase EOPT for $20 billion and to assume $16 billion in debt. The closing is scheduled for early 2007, transforming Equity Office from a publicly held real estate investment trust (REIT) into a private corporation.
Optimistic Forecast For 2007
In spite of the well publicized real estate slump of 2006, the agents at Crossroads Toms River West Office made successful gains in standing in the Monmouth Real Estate Board roster by moving from #28 in 2005 to #20 in 2006 out of 476 registered real estate offices in Ocean County. Our seasoned professional agents, several new programs, comprehensive marketing plans and quick adjustment to changing market conditions all contributed to this achievement.
Looking forward to 2007, mortgage rates continue to be low, new jobs continue to be created and rising salaries are creating additional demand for homes in our area. Market performance in the past 2 months indicates a stabilization of the “slump of 2006”. State-wide, the number of homes for sale declined for the last 3 months of 2006 allowing inventory to be absorbed. A new tax break for 2007 buyers will come in the form of a tax deduction on mortgage insurance premiums (PMI), typically one-half of 1% of the mortgage. Investment property purchases were approximately 17% of the sales of 2005. Investors who contributed to price increases have now left real estate behind and are pursuing other investment venues.
Recent market improvements have been stimulated by lower prices and greater home affordability. Correct pricing will be essential to successful marketing in 2007. If you are thinking of buying or selling in 2007, call us. We offer several advantages and look forward to serving you. 732-244-2200 or 1800-847-4255
Looking forward to 2007, mortgage rates continue to be low, new jobs continue to be created and rising salaries are creating additional demand for homes in our area. Market performance in the past 2 months indicates a stabilization of the “slump of 2006”. State-wide, the number of homes for sale declined for the last 3 months of 2006 allowing inventory to be absorbed. A new tax break for 2007 buyers will come in the form of a tax deduction on mortgage insurance premiums (PMI), typically one-half of 1% of the mortgage. Investment property purchases were approximately 17% of the sales of 2005. Investors who contributed to price increases have now left real estate behind and are pursuing other investment venues.
Recent market improvements have been stimulated by lower prices and greater home affordability. Correct pricing will be essential to successful marketing in 2007. If you are thinking of buying or selling in 2007, call us. We offer several advantages and look forward to serving you. 732-244-2200 or 1800-847-4255
Notes From All Over…
Fears of crisis from adjustable rate mortgages are exaggerated. Approximately 82% of American homeowners have fully paid off mortgages or carry fixed rates. Of those with ARMs, only 25% face tightening of the belt when about $1 trillion of ARMs are reset soon at current market rates.
State funded mortgage assistance is now available for 1st time home buyers. The 30 year fixed interest rate is 5.625 for those who qualify – certain restrictions apply and is subject to change without notice. Call our Toms River West office for more info 732-244-2200 or 1800-847-4255.
NJ voters approved the property tax reform question on the November 2006 ballot which designated half of the 1% increase in sales tax for property tax relief. It is yet to be defined what “property tax relief” is, or how the money would be used for that purpose.
An exemption that limits the number of high-income tax payers who pay the alternative minimum tax expires at the end of this year. An estimated 19.2 million additional taxpayers nationally will lose all or part of their deductions for mortgage interest and local property taxes and increase their income tax bills on average $2,390.
Brick, New Jersey - America's Safest City
In late October 2006, Brick was named the Safest American City in the 13th edition of City Crime Rankings, an annual reference book on crime statistics published by Morgan Quitno Press, a publishing and research firm. Brick has ranked one of the top 5 for the last 6 years. The Safest City Award is based on 6 crime categories – murder, rape, robbery, aggravated assault, burglary and motor vehicle theft in communities of more than 75,000 people.
Real Estate and the Internet ~ New Report
The National Association of Realtors® recently completed a study on the effects of the internet on real estate activity.
80% of buyers begin their search for a home online
95% are looking for property
4% are looking for an agent to work with
29% of buyers found their home on the internet
37% found their home through print advertising
88% of consumers use email to communicate with their agents
78% of buyers will not look at listings without pictures
98% of buyers expect multiple photos and virtual tours
Even before this study was announced, Crossroads Toms River West sales agents included a minimum of 6 photos with each listing and now offers virtual tours as part of our full real estate services to attract the attention of surfing buyers.
80% of buyers begin their search for a home online
95% are looking for property
4% are looking for an agent to work with
29% of buyers found their home on the internet
37% found their home through print advertising
88% of consumers use email to communicate with their agents
78% of buyers will not look at listings without pictures
98% of buyers expect multiple photos and virtual tours
Even before this study was announced, Crossroads Toms River West sales agents included a minimum of 6 photos with each listing and now offers virtual tours as part of our full real estate services to attract the attention of surfing buyers.
Realtors® Contribute To Memorial
At the 2006 national convention in New Orleans, the board of directors of the National Association of Realtors® pledged a $1 million donation to the Martin Luther King Memorial to be built on the National Mall in Washington DC. The Realtor® logo will be featured on the memorial’s web site and advertising. This contribution reinforces NAR’s commitment to fair housing and diversity. While at the convention, 1,500 Realtors® participated in rebuilding activities, donating more than 8,500 hours.
Berkeley Sues Dover Over Betting Parlor Site Plan
Berkeley Township challenged the Dover Township Planning Board’s “courtesy” site plan review on September 6th,2006 of a proposed off track wagering facility on Route 37 West, near the Berkeley boundary. State voters approved off track wagering in 1996. The proposed 759 seat facility in the old Grand Union building would have a bar and a restaurant along with wagering options. The Berkeley mayor questions whether this was the intention of the statute and whether adequate notice was given residents to object.
Aqua America Buys Berkeley Water Company
It was announced in October 2006, that Aqua America Inc., the largest publicly traded water company based in the US, has purchased the Berkeley Water Company for $4.2 million. Aqua American is poised to make $1 million in capital improvements over a 14 month period. Wells will be upgraded to improve water quality and radio frequency read meters will be installed so they can be read remotely. The system serves 12,000 residents.
Notes From All Over
Copper prices, 125% higher than in 2004, are leading builders to substitute with plastic plumbing fittings. Investment in tools specific to plastic indicate that even if copper goes down, copper plumbing is a thing of the past.
Boomers looking for retirement homes want extra square footage of living space and are happy to take it outdoors with luxury pool areas and outdoor kitchens.
If you have done renovations to your home, be sure and check for adequate insurance coverage.
Boomers looking for retirement homes want extra square footage of living space and are happy to take it outdoors with luxury pool areas and outdoor kitchens.
If you have done renovations to your home, be sure and check for adequate insurance coverage.
Misunderstanding About Home Auctions
Perhaps you have heard that home sale auctions are making a come back with the down turn in real estate sales. Home auctions were popular in the 1980’s and 90’s as a last resort for desperate sellers. A resurgence of home auctions has begun in California and popping up in Oklahoma and Virginia.
A Leeburg, Virginia firm reported auctioning 57 homes from Jan-June of 2006, up from 11 in the last 6 months of 2005. California real estate trends often acts as an indicator of soon- to-be trends here.
Auction services often exceed 10% commission and sellers pay upfront for advertising and marketing.
Chris Mayer of Columbia Business School say sellers have it backward. Auctions work best in a strong market where there is plenty of demand and determined bidders to push the price up.
Slight Ease in Home Sales
The residential market is experiencing a slight rebound after a 9 month decline as buyers take advantage of softening prices and stable interest rates. State-wide, unsold inventory of homes on the market increased only 1% in August 2006, compared to a 47% increase in the first 6 months of the year. First time buyer sales have been steady since they do not have a home to sell in order to purchase. Adult community sales have slowed as buyers have had a hard time selling their primary residence.
Fingerprinting Now Required
As of September 5th, 2006, real estate professionals applying for a license in New Jersey will be required to provide digital fingerprints.
The new regulation applies to all new applicants for licensure through the New Jersey Real Estate Commission including real estate salespeople, brokers or instructors. Along with fingerprinting, applicants will be giving written consent for a criminal record background check.
Pricing Is Critical in Buyers Market
With the changing real estate landscape, our fiduciary obligation to our clients is more valuable to our clients than ever before. For the past 5 years, it has been relatively easy to price a property. A check of other closed (during the last 4 months), under contract and properties currently on the market in the Multiple Listing Service, adjustment for improvements and add 5-10% was a quick evaluation of an anticipated sales price.
Today, pricing has never been more critical or difficult. Some sellers refuse to accept that prices have leveled off and use their friends’ or neighbors’ home sale from a year ago as their benchmark. Others, recognizing the changing market, are confused about deciding on a price.
In a transitioning market, perceived value is more important than price. Compared to other homes listed, it’s not only the square footage, neighborhood, bedrooms and baths which entice a buyer. The over all condition of the property indicates how much money the buyer will have to invest in updates to make this property compelling. Landscape, replacements less than 2 years old, bath and kitchen renovations all add greatly to the value of the home.
The right price will excite buyers – creating an urgency and competition to the sale. Be prepared to re-price early and often. Days on the market, the number of showings, new listings and seller motivation triggers on-going price evaluation until you get a good offer.
Smart Investments Still Out There
As housing prices return to what they were in 2004, appreciation is expected to be a more normal 3-4% for the next couple of years. This should not dissuade investors from keeping their eye out for opportunities to make money in real estate. With the market shifting, sellers are becoming more realistic and motivated. A motivated seller can mean a buying opportunity for an investor.
With commercial properties, investors can’t count on short-term appreciation or a quick flip, but they can expect steady income. In most areas, medical buildings and small strip malls will hold long term value.
Sadly, we can expect to see more home foreclosures as sellers are unable to find a buyer for their property. Anticipate renting these units for 2 years minimum.
Pre-construction incentives on condos, townhouses, and new developments can add up to major upgrades, with good return down the road on resale.
The value of shore and vacation properties should not be underestimated.
With commercial properties, investors can’t count on short-term appreciation or a quick flip, but they can expect steady income. In most areas, medical buildings and small strip malls will hold long term value.
Sadly, we can expect to see more home foreclosures as sellers are unable to find a buyer for their property. Anticipate renting these units for 2 years minimum.
Pre-construction incentives on condos, townhouses, and new developments can add up to major upgrades, with good return down the road on resale.
The value of shore and vacation properties should not be underestimated.
Notes From All Over
Compare interest rates for the best return on your cash rates at http://www.bestcashcow.com/. 83% of 2nd home buyers are married baby boomer couples with no children at home.
32% of workers who say they visit non-work sites while on the job look at real estate. Another show of the value of internet marketing.
25% of job growth since 2002 has been real estate related - building, finance, design, furnishings, landscape, etc. Fewer house sales will play a big part in slowing job growth.
32% of workers who say they visit non-work sites while on the job look at real estate. Another show of the value of internet marketing.
25% of job growth since 2002 has been real estate related - building, finance, design, furnishings, landscape, etc. Fewer house sales will play a big part in slowing job growth.
Zillow Allows Home Owners To Update Info
Zillow, the Seattle based internet site which came on-line in February 2006, offers estimated home valuations and other property data on over 68 million homes in the USA. Zillow takes the home information from public tax records and suggests a sale value of the property. The limitation of the site was that upgrades and other distinctions of the property could not be added to the base comparison. Now consumers who notice their information is not up to date can add more current info and post commentary on the site.
To use Zillow’s opened database, home owners must register under their name and claim their home owner record through a verification process. All owner provided information will be displayed alongside Zillow’s existing data for that home. Go to www.zillow.com for more details.
Landlords– New Legislation
In July 2006, legislation was signed into law by Governor Corzine extending window guard regulation which applies to multiple dwelling rentals to include condominiums and cooperatives. The new law requires the landlord or rep to verbally inform the tenant, at the time the lease is signed, of the tenant’s right to request installation of approved window guards. A specific form must be signed by the tenant that this has been complied with. If you need a copy of this form, call our Toms River West office 732-244-2200 or 1800-847-4255.
What’s New? Designer Homes
You’ve heard of designer jeans and handbags? Martha Stewart homes in North Carolina, Giorgio Armani’s Wall Street condos and Mick Jagger’s daughter Jade with a 57 unit building the Chelsea section of Manhattan are all selling quickly and buyers want the celebrity distinction. Stewart’s designs, based on her homes in Maine, Conn., and New York sell from $200,000 –500,000 and are the winning ticket for KB Homes, now building in Atlanta, Houston and LA.
Toms River Featured on Good Morning America
Once again Toms River was featured on national television as Good Morning America challenged New York power broker Barbara Corkoran to prove her claim that she could sell any house in 5 days.
The challenge was to sell a bi-level style home in the Deer Hollow section of Toms River which had been on the market for six months with no offers. During a five minute segment on Good Morning America for six consecutive days, Barbara talked about the ways to bring a sale.
The first point was outside grooming to create more curb appeal. The block driveway was power washed, mulch was added to flowerbeds and the back patio and yard were stripped of furniture, toys and grilling equipment, accentuating the large yard.
Day 2 suggested removing clutter from the house. The owners rented a POD and filled it with boxes of items to be stored, excessive furniture and items from the garage. Removal of these items made the rooms seem larger and de-personalized the space.
The challenge was to sell a bi-level style home in the Deer Hollow section of Toms River which had been on the market for six months with no offers. During a five minute segment on Good Morning America for six consecutive days, Barbara talked about the ways to bring a sale.
The first point was outside grooming to create more curb appeal. The block driveway was power washed, mulch was added to flowerbeds and the back patio and yard were stripped of furniture, toys and grilling equipment, accentuating the large yard.
Day 2 suggested removing clutter from the house. The owners rented a POD and filled it with boxes of items to be stored, excessive furniture and items from the garage. Removal of these items made the rooms seem larger and de-personalized the space.
Day 3 and 4 showed the décor being enhanced by neutral paint, stylish bedding and removal of room darkening window treatments.
Day 5 focused on signage to promote the Sunday Open House.
The house was originally $349,000. The broker suggested a price of $299,900 but the seller would not list below $339,900. The climax of the challenge was an Open House. Eighty people came to view the property but it did not produce a sale.
Pending NJ Legislation Impacts Home Owners
AR163– This bill urges the Federal government to provide funding to the US Army Corps of Engineers for coastal projects in NJ as allocated by the Federal FY ‘06 Energy and Water Development Appropriations Act. Reported out of committee with committee amendments and read in the assembly on May 15, 2006.
A1168– This bill would provide sales tax exemption for certain home improvement materials purchases. Helpful for flood or storm victims to encourage insurance companies to continue to insure homes in high risk areas. Introduced on January 10, 2006 and referred to Assembly Housing and Local Government Committee.
A2585– This bill would revise the fee schedule for property tax assessment appeals and reduce the amount a homeowner will pay when appealing an assessment. Introduced to the Assembly and Senate in February 2006 and referred to Committees.
A2742– This bill proposes to increase the gross income tax exclusion for sale of a principle residence so individuals who have experienced large gains in the value of their homes can use the profit for retirement and other needs instead of paying state income tax. Introduced and referred to Assembly Housing and Local Government Committee in March 2006.
A1168– This bill would provide sales tax exemption for certain home improvement materials purchases. Helpful for flood or storm victims to encourage insurance companies to continue to insure homes in high risk areas. Introduced on January 10, 2006 and referred to Assembly Housing and Local Government Committee.
A2585– This bill would revise the fee schedule for property tax assessment appeals and reduce the amount a homeowner will pay when appealing an assessment. Introduced to the Assembly and Senate in February 2006 and referred to Committees.
A2742– This bill proposes to increase the gross income tax exclusion for sale of a principle residence so individuals who have experienced large gains in the value of their homes can use the profit for retirement and other needs instead of paying state income tax. Introduced and referred to Assembly Housing and Local Government Committee in March 2006.
Notes From All Over
NJ minimum wage increased to $7.15 beginning October 1st 2006.
Corzine’s team is still reviewing suggestions for property tax reform. One idea is a 4% cap on increases.
Statewide, property taxes increased 6.9% since 2001.
Inflated real estate appraisals are under scrutiny where loans were to sub-prime borrowers who are particularly vulnerable to default if they owe more than their home is worth.
Nationally, Real Estate Agencies are moving away from print advertising to internet ads.
Corzine’s team is still reviewing suggestions for property tax reform. One idea is a 4% cap on increases.
Statewide, property taxes increased 6.9% since 2001.
Inflated real estate appraisals are under scrutiny where loans were to sub-prime borrowers who are particularly vulnerable to default if they owe more than their home is worth.
Nationally, Real Estate Agencies are moving away from print advertising to internet ads.
Market Changes Affect High Priced Homes the Most
According to the most recent report from the Otteau Group, one of New Jersey’s preeminent appraisal and real estate market analysts, Ocean County is experiencing a market transition wherein buyers have greater bargaining power than any time since 1991.
According to their report, contract sales thru July 2006 were down 19% and unsold inventory was up 62% compared to 2005. For homes priced under $600,000, there is a 9 month inventory supply; $600-$1 mil a 21 month supply; $1 mil-$2.5 mil a 17 month supply and over $2.5 a 60+ month supply. This indicates that moderate priced houses will see the first recovery from the current downswing.
With mortgage rates down, buyers have an many excellent choices for a home purchase now. We are still recommending seller incentives to attract a sale.
According to their report, contract sales thru July 2006 were down 19% and unsold inventory was up 62% compared to 2005. For homes priced under $600,000, there is a 9 month inventory supply; $600-$1 mil a 21 month supply; $1 mil-$2.5 mil a 17 month supply and over $2.5 a 60+ month supply. This indicates that moderate priced houses will see the first recovery from the current downswing.
With mortgage rates down, buyers have an many excellent choices for a home purchase now. We are still recommending seller incentives to attract a sale.
Support Farmland on Your License Plate
With strong support from open space advocates and state farmers represented by New Jersey Farm Bureau, NJ Motor Vehicles offers an agriculture specialty license plate. The commission reports that 8,137 “Promote Agriculture” plates have been sold. Pinelands (7,416 sold), Liberty State Park (7,462 sold), Coastal Protection (16,332 sold), Protect Wildlife (52,091 sold), Conquer Cancer (47,436 sold) and Animal Welfare (46,521 sold) are other plates available from the Motor Vehicle Dept.
Home Remodeling Slowdown
Total spending on fix-ups headed to a 4% gain in 2006, about half of what was originally projected at the start of 2006. Even homeowners who have a lot of equity in their houses are reluctant to cash out for home renovations, wondering if now is the right time to re-invest in their house. Slowing sales of existing homes and the question of interest rate changes add to the caution. It is now thought that 2007 will see only a modest gain in remodeling, about a 3% increase.
Seller Incentives Promote Quicker Sales
Crossroads is celebrating its 40th year in real estate in Ocean County and has weathered the trials of the cyclical nature of the real estate market. Now, when we are experiencing a slowing trend in home sales, you can rely on Crossroads agents to put our past experience to work for you. With inventory at a 9 month supply, buyers have a large selection of homes to choose from in any price category, and the urgency of the seller to relocate initiates many price reductions. But we also believe there are other avenues to stimulate buyer interest in your home.
For sellers who want to bring your house to the attention of an MLS full of active agents, here are some tips to stimulate interest:
Replace ALL kitchen appliances with new ones. Any kitchen update adds instant value, and coordinated brand new appliances would capture every buyers’ attention. Much more pop than a same cost price reduction.
Offer to pay the one time association fee at closing OR a years worth of association fees to tempt buyers to YOUR community.
A buyers’ agency bonus is a great incentive to make your home one of the first shown.
Offer to transfer your home owner insurance policy to the new buyer and pay it up for a year.
Have your home and windows professionally cleaned so the house sparkles and gives a buyer a “good feeling” not found in other homes.
Call Crossroads to discuss other incentives to help sell your home.
For sellers who want to bring your house to the attention of an MLS full of active agents, here are some tips to stimulate interest:
Replace ALL kitchen appliances with new ones. Any kitchen update adds instant value, and coordinated brand new appliances would capture every buyers’ attention. Much more pop than a same cost price reduction.
Offer to pay the one time association fee at closing OR a years worth of association fees to tempt buyers to YOUR community.
A buyers’ agency bonus is a great incentive to make your home one of the first shown.
Offer to transfer your home owner insurance policy to the new buyer and pay it up for a year.
Have your home and windows professionally cleaned so the house sparkles and gives a buyer a “good feeling” not found in other homes.
Call Crossroads to discuss other incentives to help sell your home.
Buyers Have Differing Views on Home Ownership
Baby boomers, those born between 1946-1964, were urged to buy their first house when their growing family required more space. They planned to stay put until the children were out of school, and sometimes to keep the family home to share with their grandchildren too.
Generation X, those born between 1965– 1978, and Generation Y, those born between 1979– 1994, are buying for a safe financial investment.
Other differences of perspectives include: Gen X bought their first home later in life than Boomers yet Gen Y are buying at a younger age. Gen X and Y spend 25% of their income on their purchase whereas Boomers spent only 21%.
Fifty-nine percent of seniors view their home as a retirement asset, though only 26% plan to use it to finance their retirement. Thirty-six percent plan to leave it to their heirs. Four percent plan to take out a reverse mortgage and 4% plan to take equity from their home for improvements within the next year. Currently 18% of seniors downsize to Active Adult Communities.
Generation X, those born between 1965– 1978, and Generation Y, those born between 1979– 1994, are buying for a safe financial investment.
Other differences of perspectives include: Gen X bought their first home later in life than Boomers yet Gen Y are buying at a younger age. Gen X and Y spend 25% of their income on their purchase whereas Boomers spent only 21%.
Fifty-nine percent of seniors view their home as a retirement asset, though only 26% plan to use it to finance their retirement. Thirty-six percent plan to leave it to their heirs. Four percent plan to take out a reverse mortgage and 4% plan to take equity from their home for improvements within the next year. Currently 18% of seniors downsize to Active Adult Communities.
Notes From All Over
36% of residential sales transactions in 2005 were marred by title problems, up from 25% on 2004. Recording errors and payoff of liens caused most of the problems. Twelve US cities, recognized for maintaining the original look of their communities, were added to the National Trust for Historic Preservation this year. Info go to www.nationaltrust.org
Bills proposed for consideration of the NJ legislative session include exemptions from realty transfer fees for military families.
US Supreme Court—Wetlands Ruling
In mid July of 2006, the US Supreme Court surprised the public with a wetlands ruling favoring developers. Two property rights cases sought to clarify federal wetlands regulations. At issue was the geographic extent of areas to be regulated, and the type of activities deserving such regulation.
In a split decision, the court appears to have favored landowners by limiting the regulatory reach of federal agencies. In the deciding opinion of Justice Anthony Kennedy, only wetland areas shown to have a “significant effect on the biological integrity of a navigable waterway” should be subject to federal wetlands regulations. There have been instances of farm fields being classified “wetlands”, though there was never enough water to make a “navigable” stream. However, it could take years before regulatory definitions are clarified.
In Case You Were Wondering…
Many New Jerseyans were shaking their heads in disbelief at the state shut down while the budget was being resolved in July 2006. While the question begging to be answered was how the state can increase revenue and reduce real estate taxes, the state shut down cost plenty. The state lost $15.5 million in state lottery revenues, $4 million in fees from the loss of business in casinos in Atlantic City, and the pay from 45,000 state workers who had a nice 4 days off as a paid 4th of July vacation!
Overhaul of Major Lenders Stalled
Accounting scandals have brought Fannie Mae and Freddie Mac under the scrutiny of Congressional reform. In an attempt to tame the 2 giant mortgage companies, Congress has capped Fannie Mae’s investments and a lid on Freddie Mac is expected soon. Investors can breath easier as strict limits from Congress that would threaten profits (stocks and bonds) will be postponed. It is expected that time will run out this year to complete the overhaul of these lenders.
Buyers’ Market Options ~ Seller Assisted Financing
As inventory continues to mount in Ocean County, Crossroads agents are working in cooperation with our in-house mortgage company to propose options for seller assisted financing to make homes available to more buyers.
Several mortgage products accept seller concessions of up to 5% to assist buyers with closing costs. This enables a buyer to purchase with less , or in some cases no, cash outlay. Our in-house mortgage company, Home Capital Network also offers a buy down program which lets the buyer pay reduced interest rates for the first few years. Paid by the seller, these by-down options are especially useful for buyers who anticipate increased earnings in the near future, such as contractual wage increases for teachers, policemen and others. One problem that recurs is when sellers need to move and have only owned their home for 12-18 months.
The market began to flatten out in August 2005, so very little appreciation has accrued, in most cases not enough to cover sales expenses of realty commission, transfer tax (NJ mandatory seller expense), attorney fees, etc. Any seller in such a situation who has an FHA loan should know that this mortgage is assumable by the buyer. FHA rates have been very low (6%-/+ 2004, 5%-/+ 2005). With interest rates at 7%-/+ now, an assumable FHA loan can save interest costs each month, giving the buyer more spending power.
Our commitment to our clients drives us to rediscover new ways to bring buyers and sellers together.
Several mortgage products accept seller concessions of up to 5% to assist buyers with closing costs. This enables a buyer to purchase with less , or in some cases no, cash outlay. Our in-house mortgage company, Home Capital Network also offers a buy down program which lets the buyer pay reduced interest rates for the first few years. Paid by the seller, these by-down options are especially useful for buyers who anticipate increased earnings in the near future, such as contractual wage increases for teachers, policemen and others. One problem that recurs is when sellers need to move and have only owned their home for 12-18 months.
The market began to flatten out in August 2005, so very little appreciation has accrued, in most cases not enough to cover sales expenses of realty commission, transfer tax (NJ mandatory seller expense), attorney fees, etc. Any seller in such a situation who has an FHA loan should know that this mortgage is assumable by the buyer. FHA rates have been very low (6%-/+ 2004, 5%-/+ 2005). With interest rates at 7%-/+ now, an assumable FHA loan can save interest costs each month, giving the buyer more spending power.
Our commitment to our clients drives us to rediscover new ways to bring buyers and sellers together.
No Resolution of the Federal Estate Tax
The US Senate tried but failed to set up final consideration of a bill which would permanently repeal the federal estate tax. Currently the tax is being phased out gradually to the year 2010. The repeal sunsets at that time and the tax reappears unless legislation is enacted. The proponents were 3 votes short of permanent repeal.
New Jersey Tax Update
NJ Legislature will move to formal consideration of property tax reform in 2006. Part of election promises, Senate President and Assembly speaker have created a plan that calls for four special committees to hold hearings with hopes that legislation could be enacted in the fall. Categories to be investigated include reduction of state and local school spending, public employee benefits, and state services.
Rumblings of a sales tax on professional services (ie: accountants, lawyers, Realtors®), and other service trades has been proposed, and summarily dismissed. However, write to your senators to voice against this possibility.
Rumblings of a sales tax on professional services (ie: accountants, lawyers, Realtors®), and other service trades has been proposed, and summarily dismissed. However, write to your senators to voice against this possibility.
Notes From All Over
The proposed NJ “water tax” bill was shelved indefinitely from the pending state budget. Zoning regulations in question on waste-to-ethanol plant proposed on Route 9, Dover. For more info, go www.nuclearsolutions.com . Mortgage rates peaked at about 7% by fall of 2006. Warehouse construction, fueled by increased international trade, was up with rent up 5% thru the year. Proposed FHA reforms include 40 year Fed backed loans and elimination of the required 3% down payment.
Avoid the Remodeling Blues
In a year where home sales are declining and the “buyer’s market” is being determined by swelling inventories and price reductions, many home owners are happy to have the equity they need to expand and remodel their home to suit their growing families and changing lifestyles.
It is expected that an increase of 6% will be spent on home remodeling projects this year, keeping builders, handy men, landscapers and DIY super stores busy. Your remodeling contract should include: a written description of the job and materials, who will obtain permits, start and approximate completion date, time limit for fixing any defects and a payment schedule. A significant amount should be paid only when the job is completed to your satisfaction. Be cautious of the lowest bid. A low-price contractor may cut corners.
It is expected that an increase of 6% will be spent on home remodeling projects this year, keeping builders, handy men, landscapers and DIY super stores busy. Your remodeling contract should include: a written description of the job and materials, who will obtain permits, start and approximate completion date, time limit for fixing any defects and a payment schedule. A significant amount should be paid only when the job is completed to your satisfaction. Be cautious of the lowest bid. A low-price contractor may cut corners.
National Flood Insurance Changes
The Federal Government will no longer subsidize flood insurance for 2nd homes, commercial property or homes that have been flooded and rebuilt. Congress will insist on this change as part of a $20 billion bailout of the National Flood Insurance Program which was wiped out by Katrina. Other changes will include fines for mortgage lenders who don’t verify insurance coverage and compliance by state chartered banks. Flood zones WILL NOT be broadened to include more homes as was suggested.
News Affecting Every Home Owner!
Are your weekends taken up with mowing the lawn? Scientists have recently found the molecular path of a hormone that affects the growth of most plants. Researchers think that by manipulating the hormone, brassinolide, plant growth will be able to be controlled. This means we could see grass that would not grow higher than 3 inches, virtually removing the need for weekly mowing! Crop yields could be increased by taller growing feed crops and vegetables.
Internet is First Connection For Most Buyers
According to the 2005 New Jersey Profile of Home Buyers and Sellers, 72 percent of first time buyers used the internet in searching for a home, as well as 58% of repeat buyers. This could be explained that 1st time buyers are younger and more internet savvy.
Of all buyers in 2005, 84% purchased homes through a real estate agent. There is no doubt that the internet buoys home sales by making listing information available 24 hours a day and gives buyers anonymity while investigating the market.
Crossroads has long recognized the impact the internet could offer to real estate sales and has been at the forefront of realty web site development. The www.crossroadsrealtynj.com site hosts all listings available on the Monmouth/Ocean MLS with special sections on waterfront, active adult communities, featured homes and open house schedules. Our listings are also included on the web sites of our advertising venues, such as the Asbury Park Press, Luxury Home Magazine, The Real Estate Book and The Wall Street Journal.
Our relocation affiliate, Leading Real Estate Companies of the World has a site, www.leadingre.com.url tempting buyers looking to relocate with lifestyle changes across the country and around the world! Crossroads is one of just 10 Ocean County real estate companies with an enhanced presence on www.realtor.com, widely recognized as the first stop for buyers looking for homes. List with us and your home is assured of maximum on-line exposure.
Of all buyers in 2005, 84% purchased homes through a real estate agent. There is no doubt that the internet buoys home sales by making listing information available 24 hours a day and gives buyers anonymity while investigating the market.
Crossroads has long recognized the impact the internet could offer to real estate sales and has been at the forefront of realty web site development. The www.crossroadsrealtynj.com site hosts all listings available on the Monmouth/Ocean MLS with special sections on waterfront, active adult communities, featured homes and open house schedules. Our listings are also included on the web sites of our advertising venues, such as the Asbury Park Press, Luxury Home Magazine, The Real Estate Book and The Wall Street Journal.
Our relocation affiliate, Leading Real Estate Companies of the World has a site, www.leadingre.com.url tempting buyers looking to relocate with lifestyle changes across the country and around the world! Crossroads is one of just 10 Ocean County real estate companies with an enhanced presence on www.realtor.com, widely recognized as the first stop for buyers looking for homes. List with us and your home is assured of maximum on-line exposure.
Acres of Farmland in Local Municipalities
We don’t often think about the areas of farmland still viable in our “Garden State”. The New Jersey Right to Farm Act, adopted in 1983, and with amendments in 1998, established NJ as one of the strongest farmland protected states in the nation.
Right to Farm issues continue to be a major concern for farmers, their municipalities, their neighbors, and for the County agriculture development boards. Resolution of conflicts falls to the State Agricultural Development Committee, who is currently reviewing provisions to the statute.
Barnegat has 503 acres of farmland which represents 2% of the townships land in acres
Right to Farm issues continue to be a major concern for farmers, their municipalities, their neighbors, and for the County agriculture development boards. Resolution of conflicts falls to the State Agricultural Development Committee, who is currently reviewing provisions to the statute.
Barnegat has 503 acres of farmland which represents 2% of the townships land in acres
Brick has 0 acres of farmland which represents 0% of the townships land in acres
Dover has 370 acres of farmland which represents 1% of the townships land in acres
Lacey has 6375 acres of farmland which represents 12% of the townships land in acres
Lakewood has 236 acres of farmland which represents 1% of the townships land in acres
Lacey has 6375 acres of farmland which represents 12% of the townships land in acres
Lakewood has 236 acres of farmland which represents 1% of the townships land in acres
Notes From All Over
Nationally, the backlog of unsold homes rose by 2.4% to a new record of 565,000 homes for sale at the end of April 2006. At the April sales pace, this represented a 5.8 month inventory. Unpaid traffic fines and unreturned library books can lower your credit score if they are turned over to a collection agency and reported to a credit bureau. Remodel or move? See www.remodelormove.com for resources and calculator for making the best decision.
“Plan Endorsement” Process Advancing
The NJ State Development and Redevelopment Plan is on its 3rd version, and has been on hold for the last few months. But the Plan Development committee has been reviewing municipal and county petitions for Plan Endorsement, primarily affecting zoning, by the State Planning Commission.
A county or community that receives endorsement of its planning documents is either consistent with the goals, objectives and policies of the SDRP or agrees to bring it’s planning and zoning into consistency within a designated period of time.
Ocean County has been endorsed. Lakewood, Lacey and Brick Townships are in the process of review. Endorsement qualifies communities and counties for increased benefits from state agencies, including streamlined permits and approvals.
A county or community that receives endorsement of its planning documents is either consistent with the goals, objectives and policies of the SDRP or agrees to bring it’s planning and zoning into consistency within a designated period of time.
Ocean County has been endorsed. Lakewood, Lacey and Brick Townships are in the process of review. Endorsement qualifies communities and counties for increased benefits from state agencies, including streamlined permits and approvals.
Surprise Stats for New Home Purchases
The Commerce Department announced that new home sales in April 2006 increased by 4.9 percent to a seasonally adjusted rate of 1.198 million units. This was the highest rate since December 2005. Economists had been expecting a decline in sales, primarily due to increasing mortgage rates which are at the highest level in four years.
Interest rates on thirty year Freddie Mac mortgages climbed to 6.6% following the Fed’s May 2006 hike. This could be part of the typical spring boom.
Interest rates on thirty year Freddie Mac mortgages climbed to 6.6% following the Fed’s May 2006 hike. This could be part of the typical spring boom.
Crossroads Activities
Crossroads is a family owned and operated Realty and provides employment for approximately 350 people. In 2006, we pulled together a softball game followed by a picnic at Winding River Park. Other Crossroads activities throughout the year include a company Christmas Party, Spring Bonus Breakfast, seasonal Hunger Relief Food Drives and Toys For Tots Christmas Collection.
Crossroads Participates in Training Seminars
On June 27th, 2006, Crossroads agents were invited to attend a seminar entitled “Get Motivated” held at the Continental Airlines Arena. Internationally known speakers lead workshops on various aspects of business which apply to real estate sales.
Speakers included:
Zig Ziglar - reknown motivational speaker
Rick Bellizzo – former president and COO of Microsoft
Suse Orman – financial analyst and investor
Peter Lowe – strategic decision making
Phil Town – investment
Toms Hopkins – sales and negotiating skills
Special video presentations by Colin Powell and Rudolph Giuliani will focus on leadership and courage.
By now you have seen the TV advertisements from the National Association of Realtors® about the Realtors® Code of Ethics. All Realtors® are required to take this training every 4 years to keep current with new issues that may effect Realtor® relations with their clients and customers. All Crossroads agents will completed this training by October 1st, 2006.
Other seminars currently available include technology training and tax information systems.
Speakers included:
Zig Ziglar - reknown motivational speaker
Rick Bellizzo – former president and COO of Microsoft
Suse Orman – financial analyst and investor
Peter Lowe – strategic decision making
Phil Town – investment
Toms Hopkins – sales and negotiating skills
Special video presentations by Colin Powell and Rudolph Giuliani will focus on leadership and courage.
By now you have seen the TV advertisements from the National Association of Realtors® about the Realtors® Code of Ethics. All Realtors® are required to take this training every 4 years to keep current with new issues that may effect Realtor® relations with their clients and customers. All Crossroads agents will completed this training by October 1st, 2006.
Other seminars currently available include technology training and tax information systems.
Regarding Banks in Real Estate…
For several years the National Association of Realtors® has been lobbying to oppose banks gaining access into the residential and commercial real estate industry. What maintains the status quo is the current trades rule prohibiting mixing banking and commerce.
In late March of 2006, J.P. Morgan Chase withdrew its application with the U.S. Comptroller of the Currency to retain royalty streams from oil and natural gas reserves, in part due to pressure by the NAR. Why would the NAR care about banks and fuel supplies? It behooves the NAR to focus a spotlight on any banking activity which breaches the commerce rule in order to keep banks from entering the real estate industry.
Representatives from the NAR won a spot to testify at hearings this spring by the Federal Deposit Insurance Corporation to weigh the application of Wal-Mart seeking to launch an industrial loan company. NAR opposes approval on the grounds that it would mix banking and commerce.
In late March of 2006, J.P. Morgan Chase withdrew its application with the U.S. Comptroller of the Currency to retain royalty streams from oil and natural gas reserves, in part due to pressure by the NAR. Why would the NAR care about banks and fuel supplies? It behooves the NAR to focus a spotlight on any banking activity which breaches the commerce rule in order to keep banks from entering the real estate industry.
Representatives from the NAR won a spot to testify at hearings this spring by the Federal Deposit Insurance Corporation to weigh the application of Wal-Mart seeking to launch an industrial loan company. NAR opposes approval on the grounds that it would mix banking and commerce.
Monday, February 19, 2007
Notes From All Over
Residents of local school districts across NJ turned down 47% of the budgets proposed. Just 53% of the budgets were approved in 2006, compared to 71% in 2005. Expect more wetland development as private developers will be encouraged to join in wetlands credit trading, opening areas for commercial use. The prime lending rate went to 8% in May, 2006, raising the costs for adjustable rate mortgages. Nationally, commercial RE investment yielded 34% earnings 2005.
Hedging Your Housing Bets
In March of 2006, the Chicago Board Options Exchange announced the launch of housing futures contracts. Futures are a highly speculative investment strategy. The National Association of Realtor® sales statistics will be used to chart the contracts.
The program gives investors a vehicle for participating in the $20 trillion US real estate market through the purchase of contracts whose yields are based on the direction of home prices, nationally or regionally.
The program gives anyone with a stake in real estate – lenders, home-builders, home-owners and real estate practitioners a chance to enhance or protect their real estate investments through the same hedging strategies available to Wall Street investors. Largely untested, it’s hard to know how this strategy will be received.
The program gives investors a vehicle for participating in the $20 trillion US real estate market through the purchase of contracts whose yields are based on the direction of home prices, nationally or regionally.
The program gives anyone with a stake in real estate – lenders, home-builders, home-owners and real estate practitioners a chance to enhance or protect their real estate investments through the same hedging strategies available to Wall Street investors. Largely untested, it’s hard to know how this strategy will be received.
Ocean County Tax Rate Cut
The Ocean County Board of Chosen Freeholders, directed by Freeholder Director Gerry Little, approved the county’s 2006 spending package which came with a decrease in the property tax rate yet still funds the programs and services needed for a growing population.
The new tax rate is 28 cents per $100 property value – down 4 cents and representing the largest percentage decrease in the history of the county.
The new tax rate is 28 cents per $100 property value – down 4 cents and representing the largest percentage decrease in the history of the county.
Home Ownership = The Good Life
The NAR recently completed a systematic review of research which concluded that home ownership contributes strongly to the overall welfare of the community.
The study concludes home owners can expect:
· Higher educational performance of children
· Lower community crime rates
· Lessened welfare dependency among households
· More household participation in civic affairs
· Better household health
The study concludes home owners can expect:
· Higher educational performance of children
· Lower community crime rates
· Lessened welfare dependency among households
· More household participation in civic affairs
· Better household health
What Lurks Behind the Garage Door? Profit!
As the price of real estate has risen, sellers have found considerable extra value in their garage. This is prime square footage which can add to the appeal of the house and in many instances be the selling feature for a home.
Most often this is the most neglected, and underutilized area of the house. Clean and orderly garages stand out when showing a house. Often the garage is the largest room of the house and when uncluttered, leaves the imagination free to think of the myriad possibilities of how the space could be filled!
Adequate electric supply to the garage makes many hobbies possible and the space infinitely more useful. Inexpensive organizers and storage units can be filled by the buyers’ imagination, increasing the perception of storage in this home.
Cash in when you cash out by offering a great garage. Here are some tips:
* Declutter – Clear out & clean up!
* Clear the floor – and paint it!
* Add Storage – Shelves, wall systems, 2nd hand cabinets. Organize like things together.
* Add counter or work surface.
* Check door locks and garage door mechanisms.
Insurance Updates
In a bill signed by the President, Federal terrorism insurance has been extended another two years. This program was initiated after September 11th, 2001 to ensure the availability of reasonably priced policies for property owners. Some believe that the federal role is vital for keeping financing flowing to commercial real estate. The threshold for losses increased from $5 million to $50 million with the new extension and will increase to $100,000,000 in 2007.
The US House Financial Services Committee has moved forward with the development of the Louisiana Recovery Corp, an independent agency to spur rebuilding of the Gulf areas hit by hurricanes last year. The LRC would relieve hurricane victims of up to $500,000 in mortgage obligation if home owners transfer title to the LRC. The funds would be gained from proceeds of Treasury bond issues. The buildings would be rehabilitated and sold to private developers through a competitive bidding process. The bill, H.R. 4100, denies the corporation eminent domain powers.
Notes From All Over
Housing starts slipped about 10% to 1.85 million, with luxury properties suffering the biggest hit proportionately. Construction contribution to the GDP growth won’t shrink, as increased public and commercial building will offset home starts. Kiplinger projects that total home sales for the year face a 6% decline to 7.85 million. Fed’s 3/26/06 quarter % point increase was the 15th raise since 06/04. NJ inventory of unsold homes was 42,500 in Dec. 2005. Dec. 2004 was 31,000 homes.
Mortgage Rate Hikes Cut Buyer Purchase Power
When our new Fed Chairman, Ben Bernecke, implies more rate hikes in his efforts to curb inflation and stabilize the economy, it ripples through the mortgage community. In general, mortgage rates go up in response to rate hikes. Buyers are more concerned that the monthly payment is affordable, than with the bottom line cost of the house.
On 30 year fixed rate mortgages, when the rates go up 1%, buyers lose 8% of buying power. For example, the buyer looking for a $500,000 home at 5.78% interest, can only afford a $460,000 home when rates go to 6.78%.
Other costs such as tax re-evaluation, increased heating and cooling costs, increased transportation costs all add to monthly expenses which deduct from home buyers’ funds available for mortgage payments.
On 30 year fixed rate mortgages, when the rates go up 1%, buyers lose 8% of buying power. For example, the buyer looking for a $500,000 home at 5.78% interest, can only afford a $460,000 home when rates go to 6.78%.
Other costs such as tax re-evaluation, increased heating and cooling costs, increased transportation costs all add to monthly expenses which deduct from home buyers’ funds available for mortgage payments.
Eminent Domain Still Rumbling
There is an ongoing backlash to the Supreme Court decision ruling to allow eminent domain– the taking of private property for public purposes with compensation – to be used in private projects. Close to 40 states have initiated legislation limiting the scope of eminent domain.
Businesses that gain from this practice should be aware that boycotts by developers, lenders and real estate agents are possible. BB&T Corp., the 9th largest bank in the US already refuses to back projects involving eminent domain.
Businesses that gain from this practice should be aware that boycotts by developers, lenders and real estate agents are possible. BB&T Corp., the 9th largest bank in the US already refuses to back projects involving eminent domain.
Baby Boomers Look to Local Communities
As we know, retirees are living longer and are perceiving retirement as a change in lifestyle. In New Jersey, 105,000 people are turning 55 each year. Though many will opt to own 2 homes for seasonal enjoyment, 59% plan on downsizing and maintaining just one home. 57% plan on staying within 50 miles of their current home. 33% will stay within their county. Just 25% plan to move out of state.
Do I Need A Broker To Sell My House?
Many people have heard that you can save money by selling your house yourself, without paying a broker commission. Though this may be true for a select group who has previous experience in real estate, with the market tightening, most for sale by owners (FSBO) will lose money doing it themselves.
Now, isn’t that what you’d expect us to say! A recent report by the Otteau Group, independent market analysts not affiliated with brokers or multiple listing services, discloses that the median selling price of FSBOs is 15.4% less than realtor transactions. Since most realtors earn about 6% of the sales price, a FSBO who lists with a broker gains 9.4% over what he would have by going it alone.
With more than 4000 Ocean County realtors affiliated with the Monmouth/Ocean MLS, there is no other tool which exposes your house to more qualified buyers. A Realtor® assumes the risk of investing in advertising, signage, and promotions to market your property with no out-of-pocket costs for you. And most important, a Realtor® has been trained in savvy negotiating skills and has the confidence and the credibility to ask for, and get, the top sales price for your home.
Now, isn’t that what you’d expect us to say! A recent report by the Otteau Group, independent market analysts not affiliated with brokers or multiple listing services, discloses that the median selling price of FSBOs is 15.4% less than realtor transactions. Since most realtors earn about 6% of the sales price, a FSBO who lists with a broker gains 9.4% over what he would have by going it alone.
With more than 4000 Ocean County realtors affiliated with the Monmouth/Ocean MLS, there is no other tool which exposes your house to more qualified buyers. A Realtor® assumes the risk of investing in advertising, signage, and promotions to market your property with no out-of-pocket costs for you. And most important, a Realtor® has been trained in savvy negotiating skills and has the confidence and the credibility to ask for, and get, the top sales price for your home.
Housing Supply Approaching Saturation Point
Each morning when realtors check the “Hot Sheet” of daily real estate activity, more houses are coming on the market than are going into contract. As real estate inventory increases, it exerts pressures on the market. Some of the effects of increasing inventory are:
· Homes take longer to sell.
· Slower pace of price increases.
· New construction welcomes broker participation and offers incentives for buyers. Quick delivery discounts, builder financing and discounted options and upgrades increase new construction appeal.
· More inventory eliminates urgency in buyers.
· Indicates over pricing of homes for sale.
· Homes take longer to sell.
· Slower pace of price increases.
· New construction welcomes broker participation and offers incentives for buyers. Quick delivery discounts, builder financing and discounted options and upgrades increase new construction appeal.
· More inventory eliminates urgency in buyers.
· Indicates over pricing of homes for sale.
Notes From All Over
According to the American Farm Bureau, should the realization of the House passed bill on border security which omits inclusion of a temporary worker status become law, the loss of labor availability will impact the economy to $9 billion and eliminate 1/3 of the produce farms in the US. Office rents increased about 6% during 2006 compared to a 4% hike in 2004. Vacancy rates are about 14%, the lowest since 2003. New Fed chairman Ben Bernanke said he expects the nation’s interest rates to be raised a bit further in response to inflationary pressures still present in the economy. Of the AFB Top Ten Concerns, 7 impact real estate.
Crossroads Hosts Otteau Seminar
On February 28th, 2006, The Quality Inn of Toms River was the scene of Crossroads on-going training for its agents and support staff with a seminar given by Jeffery Otteau, owner of The Otteau Group. The Otteau Group are real estate appraisers and consultants which offer a concise over-view of the real estate market and the trends that will impact future real estate sales.
Because he believed this information to be so important, Mark Kotzas, president of Crossroads Realty, had extended an invitation to this vital presentation to all realtors of Ocean and Monmouth County.
Mr. Otteau and associates gather data from a variety of sources, not just MLS reports, to understand and forecast the direction of the real estate industry.
The information presented in this 4 hour seminar was made available to all agents and staff via email after the presentation. Market insights will be shared with Crossroads’ clients to help buyers and sellers understand and respond to the latest trends in local real estate.
Because he believed this information to be so important, Mark Kotzas, president of Crossroads Realty, had extended an invitation to this vital presentation to all realtors of Ocean and Monmouth County.
Mr. Otteau and associates gather data from a variety of sources, not just MLS reports, to understand and forecast the direction of the real estate industry.
The information presented in this 4 hour seminar was made available to all agents and staff via email after the presentation. Market insights will be shared with Crossroads’ clients to help buyers and sellers understand and respond to the latest trends in local real estate.
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