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.

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.

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.

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.