Rental Market Making a Strong Case for Housing

A recently published Harvard study sees the strength and trajectory of the present economy will continue to result in new household formation, which will continue to put demand for housing through 2019 and even into 2020.

In addition, even as homeownership continues to increase the housing inventory shortage will make home purchasing more expensive.

According to the Harvard report, approximately half of all renters today spend more than 30% of their income on rent.

From a homeownership perspective, the total number of renter households is dropping, but there is economic pressure being placed upon those who continue to rent as average rent nationwide rose 3.6% over the last year.

Low vacancy rates continue to allow landlords to raise rent where demand is high.

There is also a trend that was seen in the Harvard report showing that high-income rentals 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.

An interesting metric was discovered that in 2018, 29% of newly-completed multi-family housing units were renting apartments for more than $2,050, especially in the Northeast.

Another concerning finding is that low-cost rentals are on the decrease, with 17% less low-income rentals then in 2011.

Other factors making housing more expensive as covered in other Counsellors Title blog posts are the rising costs of materials and the  skilled labor. Add to the already complicated real estate market is the scarcity of buildable lots.

According to the Harvard study, residential land has increased by 80% in the US over the last 10 years. This is 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 surgeons in land appreciation are:
Nevada +158%
Colorado +96%
California +88%
Arizona + 81%.

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

The good news for the housing market is that household formation continues to provide a stabilizing force with 1.2 million new households per year being formed for the last 3 years.

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.

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Ocean Grove Celebrates 150th Anniversary

Ocean Grove is celebrating its 150th anniversary this weekend.

There will be a traditional parade in Ocean Grove at 10:30am throughout town to commemorate its founding. The celebration continues at Image result for ocean grove to celebrate 150th anniversary1:00pm in Auditorium Square for a Food Truck Festival and Community Fun for the whole family! Liquid Church Service, 6pm. Fireworks begin at the beachfront at 9pm! You will not want to miss out on the fun we will have celebrating 150 years together!

History
Ocean Grove was founded in 1869 as an outgrowth of the camp meeting movement in the United States, when a group of Methodist clergymen, led by William B. Osborn and Ellwood H. Stokes, formed the Ocean Grove Camp Meeting Association to develop and operate a summer camp meeting site on the New Jersey seashore.

It remains the longest-active camp meeting site in the United States. It soon became a popular destination during the growth of the camp meeting movement in post-Civil War America.

In 1975, Ocean Grove was designated a State and National Historic District as a 19th-century planned, urban, community. It has the most extensive collection of Victorian and early-20th century architecture in the United States.

Happy 4th of July from Counsellors Title Agency

We wish all of our friends and clients a fantastic, safe and happy 4th of July.

Celebrating the Greatest Country in the World:
The United States of America

Counsellors Title Agency will be closed Thursday, July 4th and Friday, July 5th. We will reopen Monday, July 8th.

NJ 4th of July Happenings

Atlantic Highlands Marina Fireworks  Friday, July 5, 2019: The Atlantic Highlands Firemen’s Fair takes place July 2nd to July 6th and the Borough of Atlantic Highlands Independence Day Fireworks display will be held on Friday, July 5th.

Avalon Independence Day Celebration Thursday, July 4, 2019: Avalon Independence Day Celebration at 30th Street Parking Lot.  

Barnegat Independence Day Fireworks Wednesday, July 3, 2019: Concert begins at 7pm with fireworks to follow at sundown. 

Bradley Beach Fireworks Wednesday, July 3, 2019: Enjoy celebrating Fourth of July with the Borough’s annual Firework Show at the beachfront promenade at 9 pm. (Rain Date: Friday, July 5, 2019) 

Brick July 4th Summerfest Concert Thursday, July 4, 2019: Jessie’s Girl (80s band). Beer & Wine Garden at Concert and Car Show. Fireworks at dusk.

Fireworks Over Hazlet Wednesday, July 3, 2019: The annual fireworks show from Veterans Park, beginning at dusk. Rain date July 5.

Freehold Independence Day Concert & Fireworks Wednesday, July 3, 2019: This event features live music from 6:30 – 9 pm immediately followed by the fireworks. Food and beverages will be available for purchase.

Lakehurst July 4th Fireworks Wednesday, July 3, 2019: July 3, 2019 Fireworks at Dusk at Lake Horicon.

Lavallette Fireworks & Concert Sunday, July 7, 2019: Concert starts at 8pm, and fireworks at 9pm. Rain date July 14, 2019.

Monmouth County 4th of July Celebration Thursday, July 4, 2019: Celebration of our nation’s independence. Thursday, July 4, 2019, 10 am.

Ocean City Fourth of July Celebration Thursday, July 4, 2019: With a kite flying competition at 7pm, which is followed by entertainment on the beach next to the music pier. Boardwalk fireworks begins at 9pm.

Ocean Grove 4th of July Celebration Saturday, July 6, 2019: Independence Day starts with the traditional Ocean Grove parade, and later that evening with a fireworks show.

Ocean Township Independence Day Celebration Wednesday, July 3, 2019: Beginning in the day, lots of entertainment, food and fireworks which commence at dusk.

National New Home Sales Fall

Data from the Census Bureau and the Department of Housing and Urban Development [HUD] indicates new homes sales in May fell by 7.8% (626,000 at an annualized pace from April’s upwardly revised rate of 679,000.) This represents a new 5-month low. The temptation is to interpret the lower numbers to mean the economy is slowing down, but actually the market is being affected by the shortage of skilled labor and higher material costs. According to these recent numbers, May’s level sits 3.7% lower than a year ago.

Many of the inflated markets have seen the median sales price of new homes fall 2.7% from a year earlier to a new average of $308,000.

New Jersey’s median sales price for single-family homes has increased year-over-year from May 2018 by 6% to $330,000 and the average sales price for single-family home has also increased by 4.6% from $393,000 to $412,000.

The concern over the retreat of new home sales occurs in light of falling mortgage rates, which appear to not make up the difference in the number of new home sales. According to the Census Bureau and HUD, the seasonally-adjusted estimate of new homes for sale nation-wide by the end of May was 333,000 representing a supply of 6.4 months at the current sales rate. This 6-month level of inventory for new homes is considered to be a healthy supply level. In contrast, New Jersey’s strong real estate market reflects the continued demand for housing with the total number of homes for sale falling over 3,000 units (7.8% to 37,173 in May) or 5.3 months supply.

Zillow Economist Matthew Speakman said despite a step backward in single-family housing starts, builder confidence remains strong, and a recent uptick in single-family permits indicates better days are coming.

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/

May National Existing Home Sales Rebound

Homes stayed on the market an average of 26 days in May and prices were up nearly 5% compared to a year ago.

The National Association of Realtors recently reported that existing-home sales hit 5.34 million, a seasonally-adjusted annual pace in May. Buyer demand continued to push then total number of sales of previously-owned homes 2.5% higher than in April but was still 1.1% lower from May 2018. According to MarketWatch, “consensus forecast was for a 5.28 million annual rate.”

What happened: Nationally, the median sales price for previously-owned homes climbed in May to $277,700, representing a 4.8% annual price increase, the 87th straight month of annual price increases.

Fast Facts for May
Northeast sales increased by 4.7% jump in sales
Midwest sales increased by 3.4%
South sales increased by 1.8%
West sales increased by 1.8%

Housing demand remains generally strong overall, with properties remaining on the market for an average of 26 days in May, up a bit from 24 days in April, but still a sign of a strong seller’s market.

The National Association of Realtors seasonally-adjusted sales showed 540,000 homes were sold during the month of May, which is up from 535,000 reported in May 2018.

With the recent drop in mortgage average rates falling to a three-year low, the costs associated with a home purchase are clearly giving buyers, especially first-time buyers with additional incentives to re-enter the market, as rents continue to trend higher. These figures have improved significantly from 2018 when average mortgage rate was 4.55% and is now hitting a 3-year low of 3.84%.

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/

Morris and Middlesex Counties

Morris County
Single Family Homes for May
Key Metrics    2018   2019   Change
New Listings  1,117   1,077 – 3.6%
Closed Sales     441      468   + 6.1%
DOM*              56        57      + 1.8%
Median PX     $440K  $455K  + 3.4%
% of PX      98.6%   98.7%    + 0.1%
Inventory     2,448  2,438   – 0.4%
Months Supply 5.7  5.8        + 1.8%
*Days on Market

Middlesex County
Single Family Homes for May
Key Metrics      2018     2019    Change
New Listings    1,020      931    – 8.7%
Closed Sales       542      594      + 9.6%
DOM*                61         59      – 3.3%
Median PX      $335K    $356K    + 6.2%
% PX Rec’d     98.9%     98.5%    – 0.4%
Inventory     2,193       2,163      – 1.4%
Month Supply   4.0         4.1       + 2.5%
*Days on Market

The most dramatic shift in Middlesex County’s single-family sales came by way of the 9.6% surge in closed sales for May year-over-year.

Another bright spot on the Middlesex single family home front came in the median sales price increase 6.2% from $335,000 to $355,750.

Monmouth and Ocean County May Sales

Monmouth County single-family sales remain stable for the month of May on a year-to-year basis. Even though clothes sales dropped by 5.5% the number of new listings increased from 1263 to 1265 year of the year.
Median sales price also increased but only by 1.1% to $440,000. Inventory in Monmouth County also fell but just slightly by 3.6% to 3,020. Currently, the months supply of homes available is 5.2 months.

Monmouth County
Single Family Homes for May
Key Metrics    2018   2019   Change
New Listings  1,263   1,265  + 0.2%
Closed Sales     674      637   – 5.5%
DOM*              56        54      – 3.6%
Median PX     $435K  $440K  + 1.1%
% of PX      98.4%   97.9%    – 0.5%
Inventory     3,134  3,020   – 3.6%
Months Supply 5.2  5.2         %0
*Days on Market

Ocean County single-family sales skyrocketed for the month of May by 19% year-over-year.

New listings for Ocean County remained flat with 1,433 verses 1,427 in 2019.
Median sales price increased nearly 2% from $309,000 to $315,000. Inventory continues to slip and fell by 6.2% to 4,359 homes on the market versus to 4646 in 2018. Currently the month supply the single family homes in Ocean County is 6.2 months which is a 12.7% drop from 2018.

Ocean County
Single Family Homes for May
Key Metrics      2018     2019    Change
New Listings    1,433    1,427     + 3.2%
Closed Sales       678      690      + 3.1%
DOM*                72          74      – 5.2%
Median PX      $309K   $315K    + 2.3%
% PX Rec’d     97.1%     97.5%    + 0.9%
Inventory      4,646       4,359      – 6.4%
Month Supply   7.1          6.2       – 11.8%
*Days on Market

NJ May 2019 Numbers

At this point in the year, we are getting a good sense for how the housing market is likely to perform for the foreseeable future. And although it is not a particularly exciting forecast, it is a desirable one. Markets across the country are regulating toward a middle ground between buyers and sellers. While it remains true that sales prices are running higher and that inventory options are relatively low, buyers are beginning to find wiggle room at some price points and geographies. 

• Single Family Closed Sales were up 3.8 percent to 7,791.
• Townhouse-Condo Closed Sales were up 0.4 percent to 2,301.
• Adult Communities Closed Sales were up 10.9 percent to 783.
• Single Family Median Sales Price increased 6.0 percent to $330,000.
• Townhouse-Condo Median Sales Price increased 6.0 percent to $275,500.
•Adult Communities Median Sales Price remained flat at $210,000.

An extended trend of low unemployment, higher wages and favorable mortgage rates has been a terrific driver of housing stability in recent years. What is different about this year so far is that prices are not rising as quickly. That said, the Northeast, including the bulk of New York and New Jersey, is achieving a state of recovery after a decade of battling back from recession. As a whole, the selling season is looking fairly stable across the nation.

 

Housing Starts Fall 4.7 Percent

Building Permits
Privately‐owned housing units authorized by building permits in May were at a seasonally adjusted annual rate of 1,294,000. This is 0.3 percent (±1.3 percent)* above the revised April rate of 1,290,000, but is 0.5 percent (±1.4 percent)* below the May 2018 rate of 1,301,000. Single‐family authorizations in May were at a rate of 815,000; this is 3.7 percent (±1.2 percent) above the revised April figure of 786,000. Authorizations of units in buildings with five units or more were at a rate of 442,000 in May.

Housing Starts

Privately‐owned housing starts in May were at a seasonally adjusted annual rate of 1,269,000. This is 0.9 percent (±12.9 percent)* below the revised April estimate of 1,281,000 and is 4.7 percent (±8.9 percent)* below the May 2018 rate of 1,332,000. Single‐family housing starts in May were at a rate of 820,000; this is 6.4 percent (±9.5 percent)* below the revised April figure of 876,000. The May rate for units in buildings with five units or more was 436,000.

Housing Completions
Privately‐owned housing completions in May were at a seasonally adjusted annual rate of 1,213,000. This is 9.5 percent (±13.7 percent)* below the revised April estimate of 1,340,000 and is 2.8 percent (±9.1 percent)* below the May 2018 rate of 1,248,000. Single‐family housing completions in May were at a rate of 890,000; this is 5.0 percent (±12.7 percent)* below the revised April rate of 937,000. The May rate for units in buildings with five units or more was 319,000.

Summer is Officially Here

In 2019, the summer solstice will occur on Friday, June 21, at 11:54 A.M. EDT. This marks the official beginning of summer as the Northern Hemisphere points itself toward the sun, resulting in the longest day and shortest night of the calendar year. By longest “day,” it means the longest period of sunlight. This marks the start of summer in the northern hemisphere.  The Summer Solstice is the day with the longest period of sunlight.

On June 20th, we will get approximately 15 hours of sunlight.

June through September marks the busiest time for tourism in New Jersey. Here are 7 of the most popular summer tourist destinations:

1. The lighthouses.

A reminder of New Jersey’s rich maritime heritage, historic lighthouses along the coastline are not only picturesque — they’re pieces of American history. Take a tour of Sandy Hook Lighthouse (Highlands), the oldest working lighthouse in the country, built in 1764, or take your pick from one of the many other lighthouses in New Jersey.

2. The beaches and boardwalks.

With more than 130 miles of coastline, New Jersey has every type of beach you could want — from quiet and serene, to family-friendly and the social scene. Bordering the beaches are the world-famous boardwalks: pedestrian walkways lined with restaurants, shops, open-air bars, kid-approved attractions and beachfront hotels.

3. Wine tasting.

Escape to the Garden State’s countryside to discover rolling hillsides covered in grape vines at one of the many wineries and vineyards. You can enjoy wine tasting in one of the charming tasting rooms throughout the state, and then take in the beautiful views with a vineyard tour.

4. Hot air ballooning.

Want the best views around? Cruise above the pastoral landscapes of New Jersey on a hot air balloon ride, offered throughout the state. (If heights aren’t your thing, you can still marvel at the beauty of these behemoth balloons at the annual QuikChek New Jersey Festival of Ballooning in Readington every July.) Watch Video!

5. New Jersey’s state parks.

Go on an outdoors adventure this summer with the many things to do at state parks in New Jersey, from swimming and boating to hiking and mountain biking. Many state parks, such as Monmouth Battlefield State Park (Manalapan) and Long Pond Ironworks State Park (Hewitt), also have important American history sites.

6. Bike riding.

Whether you have a mountain bike or a beach cruiser, there’s no shortage of places to take in the warm weather on two wheels. Enjoy a morning ride on the Ocean City boardwalk or an all-day excursion on the Henry Hudson Trail. Find even more great places to ride bikes.

7. Camping.

There’s nothing that says summer like the crackling of a campfire beneath a starry sky. Get away from the city with a weekend at one of New Jersey’s campgrounds and RV parks. Here are just a few of our favorite campsites with gorgeous scenery.

8. Visit New Jersey’s historic villages.

It’s one thing to visit a historic site, but it’s completely different to experience it as it was in its heyday. This summer, take the kids to a living history village such as Fosterfields Living Historical Farm (Morristown), where they can experience what farm life was like from 1918-1927. At Howell Living History Farm in Lambertville, visitors can take part in early 1900s field, barn and craft programs or just explore the grounds on a self-guided tour.

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/

 

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