Median Sale Hits New Record Part 1

Every company’s story ultimately involves bringing people together to achieve a common goal. So it’s natural that their common goals and inspirations lie at the heart of the narrative.

The Q2 2019 U.S. Home Sales Report published by ATTOM Data Solutions showed that U.S. single family homes and condos sold for a median price of $266,000, establishing a new all-time high. The results reflected both a quarter-over-quarter trend and the annual trend, which is up 10.8% from the previous quarter and up 6.4% from a year ago, respectively. The strength of the economy, coupled with lower interest rates continues to fuel the upward trend within the domestic real estate market.

New Jersey’s Atlantic County on Top
New Jersey’s Atlantic City posted the largest single year-to-year increase, 16.0%, out of the 89% of all metropolitan areas for the second quarter of 2019. Other areas such as Greeley, Colorado, tracked for median home prices from the 149 metro areas reported that they were 74% above pre-recession peaks in the second quarter of 2019. Other metro areas with at least 1 million people continue to show accelerated growth for median home prices for Q2 2019: Denver and Austin both were 40% above pre-recession peaks, as well as Dallas-Fort Worth, Texas (72% above); Nashville, Tennessee (71% above); and San Antonio, Texas (58% above).

New Jersey’s Share of Distressed Property Sales
Total distressed sales continued to fall, accounting for just 11.4% of all single family and condo sales in Q2 2019. This is a 25% reduction from the 14.0% reported in Q1 2019. Of the 149 metropolitan statistical areas with a population of at least 200,000, those with the highest total distressed sales in Q2 2019 were Atlantic City, New Jersey (27.6%); Trenton, New Jersey (25.3%); and Norwich-New London, Connecticut (22.2%).

If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.

Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.

LET’S CONNECT ONLINE!
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Monmouth County Fair July 24-28

Monmouth County Fair

The 45th annual Monmouth County Fair takes place July 24th -28th.
It will be held at the East Freehold Showgrounds, 1500 Kozloski Road in Freehold.

The Fair is open from 5 p.m. to 11 p.m. on Wednesday, Thursday and Friday.
Hours for Saturday are from 11 a.m. to 11 p.m.
Hours for Sunday are 11 a.m. to 6 p.m.

The Festivities will include:
Amusement rides
Home and Garden Competition
Carnival games
Petting farm
4-H animal shows and exhibits
Local entertainment
Local farm-grown produce
Fair food
Contests

Some of the special features are:

Jobonanno & The Godsons presents “The Spirit of Asbury Revue”

Last Whippoorwill

Admission is $8 per person. Children who are 12 and under are provided free admission. Additionally, free admission is offered to seniors who are 65 and over as well as active military with identification on Sunday, July 28. The  fair is presented by the Monmouth County Park System in cooperation with the County 4-H Association.

The Monmouth County Government Tent
Inside the Monmouth County is are various resources from County departments including Tourism, County Clerk, Surrogate, Human Resources, Health, Mosquito, Human Services, Transportation, Workforce Development, Library System, Brookdale Community College and Fire Marshal.

For more information on the Monmouth County Fair, go to www.visitmonmouth.com button or call 732-842-4000.

 

The State of Real Estate

CoreLogic: Key Findings on the Economic Influence of Housing  

The number of homes with negative equity has decreased
Total percent of homes underwater went from 25.9% in the first quarter of 2010 to 4.1% in the first quarter of 2019.

Total home equity hits new record
At the end of the first quarter of 2019, total home equity reached $15.8 trillion, up from $6.1 trillion in the first quarter of 2009.2 Between the first quarter of 2010 and the first quarter of 2019, the average equity per borrower increased from approximately $75,000 to approximately $171,000.

Since 2010, the housing flip rate has increased significantly
In the first quarter of 2018, the number of properties bought and sold again within a two-year period reached its highest point at 11.4%.

Strong recovery for home prices and rents
Since June 2009, home prices and rents have continued to grow. Through May 2019, home prices increased a cumulative 50% and single-family rents increased 33% in the United States.

To read the full report go to: https://www.corelogic.com/insights/special-report-the-role-of-housing-in-the-longest-economic-expansion.aspx?WT.mc_id=crlg_190718_KufOD

Reasons Properties Fail to Close

According to Trulia, 3.9% of sales failed in 2016.

The causes for such failed transactions can be attributed to a number of causes:

■ Property title issues: prior to the close, the mortgage company will conduct a search usually through a title agency to make sure there are no liens or defects for unpaid debts or outstanding financial responsibilities on a property. Such title-related issues can interrupt or even cancel the purchase of a property, depending upon the degree of the defect.

■ The failure of the home inspection: when a buyer puts an offer on a property, it is usually subject to the home inspection. The home inspection contingency permits prospective buyers to walk away or renegotiate the price based upon the results found in the inspection report.

■ Low appraisal valuation: since nearly 80% of sales are financed (the share of cash sales in residential sales trended down to 21% in 2017, which was down from 23% in 2016, according to the December 2017 REALTORS® Confidence Index Survey), when price is beyond home value, the buyer may not qualify for a mortgage.

■ Buyer home contingencies: this means that when the buyer needs to sell their current home concomitant with the purchase of the new home, they usually submit an offer with a home sale contingency stipulation. This clause allows them to withdraw their offer if their current home doesn’t sell within a specific time period, which usually involves the use of those funds for the new purchase.

■ Failure to obtain financing: this typically occurs when a buyer who has been pre-approved encounters a change in their status, like the loss of a job.

If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.

Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.

LET’S CONNECT ONLINE!

Connect with Ralph on Facebook: https://www.facebook.com/CounsellorsTitleAgency/

Connect with Ralph on LinkedIn: https://www.linkedin.com/in/ralphaponte/

New Jersey Property Taxe$

Cost of Living in New Jersey

Property taxes in New Jersey continue to increase. When the average American household spends $2,279 on property taxes for their homes each year, according to the U.S. Census Bureau, New Jersey goes overboard. New Jersey has the highest property taxes in the country by far. The average New Jersey tax bill in 2017 was $8,690, according to the state Department of Community Affairs. This was a 1.6% increase, or $141, higher than 2016. And Governor is looking for additional revenue for the state.

With respect to the return on federal taxes paid, New Jersey gets just 74 cents back. No state in the nation gets so little in return. What is even more aggravating is that 37 states get more from Washington than they pay in.

More than $14 billion in property taxes go unpaid each year, the National Tax Lien Association has found.

This translates into higher housing costs overall for everyone. In New Jersey, the average rent for a two-bedroom apartment is $1,420 per month. This translates into New Jersey being the seventh most expensive in the country, according to a new report from the National Low Income Housing Coalition.

This is a list of the average property tax paid in the country, with New Jersey standing in the top spot.

Here is what other states are paying in property taxes:

2 Illinois 2.31% $4,476 $179,700 $4,157
3 New Ham 2.20% $4,257 $244,900 $5,388
4 Connecticut 2.07% $3,999 $270,100 $5,582
5 Wisconsin 1.94% $3,756 $169,300 $3,286
6 Vermont 1.83% $3,544 $220,600 $4,040
7 Texas 1.83% $3,544 $151,500 $2,775
8 Nebraska 1.80% $3,485 $142,400 $2,565
9 New York 1.68% $3,246 $293,000 $4,915
10 Rhode Island 1.66% $3,206 $242,200 $4,013
11 Michigan 1.64% $3,179 $136,400 $2,241
12 Pennsylvania 1.58% $3,054 $170,500 $2,691

If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.

Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.

LET’S CONNECT ONLINE!

Connect with Ralph on Facebook: https://www.facebook.com/CounsellorsTitleAgency/

Connect with Ralph on LinkedIn: https://www.linkedin.com/in/ralphaponte/

Homeownership and Rents Rise

A recently published Harvard study sees the strength and trajectory of the present economy will continue to result in new household formation, creating greater demand for housing through 2019 and even into 2020. The household formation trend continues to provide a stabilizing force with 1.2 million new households per year being formed over the last 3 years.

As homeownership continues to increase the ongoing housing inventory shortage will have its impact by making home purchasing more expensive.

Other factors making housing more expensive (as covered in other Counsellors Title blog posts) are the rising costs of materials and skilled labor compounded by the scarcity of buildable lots.

According to the Harvard study, the cost of residential land has increased by 80% in the US over the last 10 years, causing single family homes to climb in price from $159,800 in 2012 to $203,200 in 2017.

Some of the states which have seen historic surges in land appreciation are:
    Nevada +158%
    Colorado +96%
    California +88%
    Arizona + 81%.

Land costs have filtered down to a higher overall cost in homeownership with housing prices rising 41% between 2011 and 2018. This may sound like a lot, but it’s still 2% less than the average home price at the peak of 2006.

Although homeownership prices continue to climb, the total number of renter households is dropping. But, according to the Harvard report, approximately half of all renters today spend more than 30% of their income on rent. In 2018, 29% of newly-completed multi-family housing units rented apartments for more than $2,050, especially in the Northeast.

This adds economic pressure upon those who continue to rent as the average rent nationwide rose 3.6% over the last year. In areas where demand is high, vacancy rates continue to allow landlords to raise rent beyond the national rate increase.
A trend was also reported in the Harvard study indicating that high-income rentals are on the rise, which has been a trend for the last eight years.

The report indicates that between 2017 and 2018, 310,000 new high-income renters entered the market. Conversely, low-cost rentals are on the decrease, with 17% fewer low-income rentals than in 2011.

https://www.curbed.com/2019/6/25/18715797/housing-market-affordable-housing-state-of-nations-housing-harvard-2019

If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.

Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.

LET’S CONNECT ONLINE!

Connect with Ralph on Facebook: https://www.facebook.com/CounsellorsTitleAgency/

Connect with Ralph on LinkedIn: https://www.linkedin.com/in/ralphaponte/

Best Months To Sell a House

The Best Months to Sell a Single Family
It is important to know when to sell your home. If you pick the wrong month it will cost you potentially thousands in the value of the transaction.

2011 to 2018 Sales of Single Family Homes and Condos
Month Number of Sales Median Sales Price Median AVM Seller Premium
June 2,881,400  $200,000  $183,124 9.20%
May 2,657,045  $190,000  $176,875 7.40%
July 2,752,755  $199,500  $186,000 7.30%
April 2,372,242  $184,063  $173,000 6.40%
March 2,247,224  $178,000  $167,782 6.10%
August 2,802,268  $195,706  $185,000 5.80%
February 1,694,513  $170,000  $160,938 5.60%
September 2,423,163  $190,000  $181,507 4.70%
November 2,094,175  $188,173  $181,000 4.00%
January 1,762,726  $170,000  $163,909 3.70%
October 2,440,413  $188,000  $182,000 3.30%
December 2,223,542  $188,000  $182,000 3.30%
Analysis from ATTOM Data Solutions

 

 

 

2020 Trends Worth Tracking

Parts of northern New Jersey including Bergen, Hudson, Morris, Essex, and Middlesex counties are considered part of the New York metropolitan real estate region – accounting for over 20 million in population – making it the largest populated area in the country representing one-in-sixteen Americans.

The region totals 13,000 square miles, crosses 3 states and includes the largest city in the nation: New York State, Connecticut, New Jersey and New York City, of course. New York City is home to 8.4 million residents alone.

A recent forecast published by Veros Real Estate Solutions projects real estate in New York City will be flat in 2020. But that doesn’t translate into the surrounding regions such as Bergen, Essex and Hudson counties in New Jersey.

Veros is actually predicting Essex County will see a depreciation of about two-and-a-half percent. But with the sound economy and demand for strong talent-base within these markets, it is a stronger probability the adjacent counties in New Jersey will continue to show steady appreciation. Behind the steady appreciation is the economic engine, but there is also the optimism of both buyers and sellers keeping the real estate market healthy.

According to a survey conducted by the National Association of Realtors in the second quarter of 2019, now is a good time to both buy and sell a home. Forty-six percent of those surveyed strongly believe now is a good time to sell a home. This number is up dramatically from 37% reported in the first quarter of 2019. The reason for the optimism is most likely found in the drop in mortgage rates and the increase in inventories in certain markets.

The same survey showed that 38% of respondents now believe that now is also a good time to buy a home. What makes this a positive number is that 49% of the respondents believe that prices will rise within the next six months of 2019.

If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.

Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.

LET’S CONNECT ONLINE!
Connect with Ralph on Facebook: https://www.facebook.com/CounsellorsTitleAgency/

Connect with Ralph on LinkedIn: https://www.linkedin.com/in/ralphaponte/

Delinquency Rate Lowest in More Than 20 Years

CoreLogic reported that mortgage delinquencies have fallen to their lowest level in 20 years. 

  • The nation’s overall delinquency rate was 3.6% in April.
  • The foreclosure inventory rate for April was 0.4%, where it has stood for the past six months.

“In April 2019, 3.6% of home mortgages were in some stage of delinquency, down from 4.3% a year earlier and the lowest for any month in more than 20 years, according to the latest CoreLogic Loan Performance Insights Report. The measure, also known as the overall delinquency rate, includes all home loans 30 days or more past due, including those in foreclosure. For the month of April historically, the share of delinquent mortgages peaked in 2010 at 11%. Since March 2018 the overall delinquency rate each month has been lower than during the pre-crisis period of 2000 through 2006, when the rate averaged 4.7%.

The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was 1.3% in April 2019, down from 1.9% in April 2018. The serious delinquency rate for April was below the average of 1.5% for the 2000 – 2006 pre-crisis period. The foreclosure inventory rate – meaning the share of mortgages in some stage of the foreclosure process – was 0.4% in April 2019, down from 0.5% a year earlier. April’s foreclosure rate was the lowest for that month in at least 20 years and was below the average pre-crisis level of 0.6%. Rising home prices have led to record amounts of home equity, reducing the risk of foreclosure.

The share of mortgages that were 30 to 59 days past due – considered early-stage delinquencies – was 1.7% in April 2019, down from 1.8% in April 2018. The share of mortgages 60 to 89 days past due was 0.6% in April 2019, unchanged from April 2018.”

Click here for the full blog post.

 

 

Checklist of Title Search

Things that a title search should cover:

■ Goes through title records for all matters and areas as it affects title

■ Reviews the public title records such as listed ownership, encumbrances, liens, and other similar factors

■ Searches written documents, deeds and mortgages, tax, marriage, and probate records, and any other document that may affect the title of a property

■ Checks such records that are maintained by recorders of deeds, city/county clerks or clerks of court

■ Gives the assurance that the seller is the legal owner of the property

■ Identifies if there are any problems with the title

■ Provides a warning to buyers and lenders as to any title flaws that must be handled and corrected before the property can be sold or refinanced

The information contained on this website is not intended to provide legal advice but is simply informational, and the reader is advised to consult with legal counsel. Every effort has been made to provide the accuracy and reliability of the information provided on this website. However, the information is provided “as is” without warranty of any kind.

If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.

Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.

LET’S CONNECT ONLINE!

Connect with Ralph on Facebook: https://www.facebook.com/CounsellorsTitleAgency/

Connect with Ralph on LinkedIn: https://www.linkedin.com/in/ralphaponte/

 

NJ Property Lots Finding Use

Skilled labor shortages, scarcity of buildable lots, home prices continue to rise incrementally and Millennials need to find places to rent vs. buy

As articulated in an article by CNBC, the foreclosure market has narrowed with distressed and foreclosed properties accounting for only 2% of total home sales today. This is down from the historic high of 49% which was recorded back in March 2009 during the housing crash, according to the National Association of Realtors.

Building Permits Hit a HIgh

Since the crash, most housing markets recovered. But during the same period the stock market surged, delivering returns in excess of 200-500%. Now, stock investors are looking to take some of those profits and reinvest them into assets that will continue to deliver an acceptable rate of return.

According to the same CNBC article, the demand for built-to-rent properties is strong enough that one group is looking to leverage this demand into an IPO in order to raise hundreds of millions of dollars to build rental homes. The model represents the concept of building homes in a contiguous track in order to be able to make property management easier.

Along the Northeast Corridor train route in New Jersey, there are multiple construction projects building rental properties by the hundreds, as in the cases of Matawan and Avenel. In the Aberdeen/Matawan area four new housing developments are the culmination of a decades-long process to find new purpose for underutilized lots located near the train station. The Link at Aberdeen Station is a new mixed-use gated community, features studios, one-bedroom and two-bedroom apartments ranging in price from $1,735 to $2,405.

Adjacent cities such as Harrison located just across the river from Newark, are joining the renovation movement. Harrison is overhauling its train station to the tune of $265 million and given birth to a couple hundred new rental properties with proximity close to the train station, a quick 25 minute commute to downtown Manhattan.

Even Toll Brothers indicates that they’re going to begin to make similar type of construction Investments moving forward and linear, the nation’s largest home builder is experimenting with the same build to rent model

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