The Next 4 Months In New Jersey Real Estate

A closer look at the numbers will reveal a real breakdown in activity in the market for the state. Such historical data should be factored into any decision to sell or buy a home in New Jersey during the months of December to May 2017.
Back in November of 2015, the average price received for:
Single Family: $295K
Townhouse/Condo: $245K
Senior Housing: $175K
By February of 2016, the average price received for:
Single Family: $264K
Townhouse/Condo: $233K
Senior Housing: $150K
The average price did not fully recover until May of 2015 as seen by these figures::
Single Family: $305K
Townhouse/Condo: $255K
Senior Housing: $182K
Based upon the figures provided by New Jersey Realtor, the best month to sell a home is during the month of August, which in 2016 came in at:
Single Family: $332.5K
Townhouse/Condo: $255K
Senior Housing: $185K*
*In the case of senior housing, the best month for the last 12 months was July, which came in at $195K.
Best Months to Sell
Avg Days on Market
May 2016 80
June 2016 73
July 2016 70
August 2016 73
This information has been provided by New Jersey Realtor.
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.

Counsellors Title Triple Play Booth 912

Counsellors Title Agency will be attending Triple Play in Atlantic City December 6-7th.
Please be sure to stop by to say hello at the Counsellors Booth 912.
The Triple Play REALTOR® Convention and Trade Expo, presented by the New Jersey, New York State and Pennsylvania associations of REALTORS®, is the premier event for the real estate industry in the tri-state area.

NOVEMBER Projected Results 2016

According to the National Association of Realtors:
Projected home sales rose from 5.3 million to 5.5 million
Median home price fell to $234,000 $240,000 from last month
Median home price rose to $234,000 from $222,000 in 2015
Freddie Mac Fixed 30 year mortgage is up from 3.48% to 3.51%

Homebuiding In New Jersey

The fact remains that inventory of homes for sale continues to erode and homebuilders are still unwilling or unable to keep pace. Recently it was reported that homebuilder permits fell 19% to 1,594 in October from September 2016, according to CohnReznick.
The number of 2016 approvals through October was also down 17% from the first 10 months of 2015. This is creating a scarcity mentality among house hunters and agents. According to New Jersey Realtor, the average price received by a seller is 96.9% average statewide, and for Monmouth and Ocean counties is the same: 96.2%.
Other Stats
+ The report found that 47.4% of October’s permits were for multifamily projects.
+ Contributing factors for the decline were “limited inventory due to stagnant pricing,” and longer permitting reviews slowing approvals.
+ Since July 2015, monthly changes in permits have alternated between gains and declines, the report said, with nine months up and seven months down.
Lock in Loan
§ Buying a home will cost on average $900 more next year based on anticipated jumps in mortgage rates.
§ 2016 mortgage rates aren’t expected to last and average rates could rise as much as half a percent in the next few months.
§ What might that mean in terms of dollars and cents? It would translate into $864 in annual payments on a $250,000 mortgage should rates jump to 4.2% from the 3.7% average on 30-year fixed loans in November.
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.

Turnaround In Cumberland County PT 1

The median sales price of a single family home in Cumberland County, New Jersey has ranged from $150,000 in October 2011 to $118,000 as recently as October 2015.
As of October 2016, the average price of a single family home has increased 13.5% to $134,500.
What is even more impressive is how the inventory of single family homes has plummeted from a high of 21.2 months for October 2011 to 8.9 months for October 2016, a 58% reduction in the number of single family homes on the market, according to New Jersey Realtor.
Cumberland’s affordability appears to stand out to the local residents of southern New Jersey, attracting approximately 1,500 residents between 2010 and 2014. (New Jersey Realtor & U.S. Census Bureau)
The real estate metrics and census numbers appear to be bearing-out the idea that Cumberland County is a value proposition as far as bang for the real estate dollar.
Many of the new residents came from Atlantic, Burlington, Camden and Cape May counties.
The census numbers also show that there is a reverse trend taking place in Atlantic, Cape May and Ocean counties.

Turnaround In Cumberland County PT 2

The great migration is most likely the result of the weakness of the Atlantic County economy and closure of four casinos in Atlantic City.
U.S. Census figures put the median monthly gross rent in Cumberland County at $978, which is less than the rents in Atlantic, Cape May and Cumberland counties and the state.
The value that may be also attracting migrants to Cumberland County is the lower cost for a home. New Jersey Realtor placed the median price of a home sold in Cumberland County in October at $131,000, compared to $178,000 in Atlantic County. That translates to a 26% difference.
Of those people who decided to move, 42% did so for housing-related reasons, such as wanting a new or better home or apartment, according to the census, and another 20% cited an employment-related reason.
The U.S. Census calculated Cumberland’s median household income at $50,603, almost $22,000 less than the overall state figure, with a 7% unemployment rate in October.
Cumberland County
Key Metrics 2015 2016 % Change
New Listings 181 150 -17.1%
Closed Sales 99 107 +8.1%
Days on Mkt 112 84 -25%
Median Sales Price $118.5 $134.5 +13.5%
% of List Px Recd 94.6% 96.7% +2.2%
Inventory 1,150 980 -14.8%
Months Supply 11.8 8.9 -24.6%
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.

Homebuilder Permits Fall 19 Percent

Homebuilder permits fell 19% to 1,594 in October from September 2016 according to a new report issued by CohnReznick.
The number of 2016 approvals through October was also down 17% from the first 10 months of 2015.
Other Stats
+ The report found that 47.4% of October’s permits were for multifamily projects.
+ Contributing factors for the decline were “limited inventory due to stagnant pricing,” and longer permitting reviews slowing approvals.
+ Since July 2015, monthly changes in permits have alternated between gains and declines, the report said, with nine months up and seven months down.
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.

89 Percent Of Millennials Used A Realtor® In 2016

Good news for the National Association of REALTORS® 2016. According to the Home Buyer and Seller Generational Trends report – 89 percent of Millennials — used a real estate professional in their home search in 2016. This is going to call for ‘new skills’ to distinguish their own personal value proposition.
1. Define Specialties & Deliverables.
The ability to prove a knowledge of the market that resonates with them will be critical. According the the article on Realtor.com, “Millennials recognize that they need an advocate with experiential knowledge, skills, and resources to guide them through a complex and unique process.”
This means having the right data that would not be available just by searching the Internet.
2. Points of Personal Connection.
Knowledge and passion for service make for a powerful combination. When buying a property, location is the critical aspect, but when serving Millennials it is about connectivity. And connectivity comes in a number of different varieties::
1. Technology – being tech-savvy is a must.
2. Background knowledge of the personal preferences of the buyers.
3. Ability to bring a broad network of experts together quickly to solve problems and answer questions.

Connecting With Millenials

There is a huge population of millennials waiting on the sidelines, thinking that they can’t become homeowners in 2017 due to student debt and the high price of real estate. But with the right planning and strategy, there are ways without risking a financial collision.
Have the Facts
As with anything new, concerns, dangers and the lack of accurate information represent barriers to entry for many millennials. The education of millennials in the areas of real estate will require your becoming familiar with their obstacles, issues and styles in communication.
Real estate is still one of the opportunities to generate wealth that millennials have; and they need to know this.
According to some sources, by age 35, between 40 and 50% of college graduates own homes, regardless of whether they took on debt to attend school. The statistics are not as good for those without a college degree, which puts that group in the 30% range.
Currently, according to the U.S. Census, fewer than 40% of Americans under 35 own a home, compared with more than 60% of Americans overall. Historically speaking: The average age of first-time home buyer in the 1970s was 29 or 30, according to Zillow. In 2015, the average age of first-time home buyer, according to Zillow, is roughly 32.
Proximity to a job can often make it difficult to initially save for that down payment when high rents squeeze millennials’ ability to put money aside.
Good job markets often put home prices out of reach.
The first approach in ‘reaching millennials’ is to have answers and examples in hand.
Ideas
Parents can be helpful, especially in the early stages of becoming a homeowner, by providing a portion of the down payment. Purchasing a home does not always require a 20% down payment. The knowledge of the real estate agent or loan officer can become very valuable in terms of creating a working strategy.
Adopt a Style of Communication
Millennials have certain communication preferences: some like texts, others like email and still others prefer the personal touch of a phone call. It’s up to you to discover which is appropriate and how often they need or want updates. As in most cases, the stage of the purchase journey will often dictate which is best or most appropriate.

CoreLogic Reports Foreclosures Fall Again

CoreLogic reported that for the month of October 2016, only 30,000 U.S. home foreclosures were completed, which is down 3.6% from September 2016 and down 24.9% from a total of 40,000 in October 2015. Home values posted an annual 5.8% rise through September in the CoreLogic Home Price Index.
CoreLogic also reports that the current foreclosure inventory totals only 0.8% of all homes with a mortgage in the United States, which is down 0.4 points compared with October 2015.
The number of U.S. homes currently in some stage of foreclosure has fallen 31.5% from October of 2015. The total number of homes in some stage of foreclosure for October 2016 were approximately 328,000; this compares with 479,000 which were reported in October 2015.
States with the Highest Foreclosure Percentages
New Jersey (2.8%)
New York (2.7%)
Hawaii (1.7%)
Maine (1.7%)
D.C. (1.6%)
States with the Lowest Foreclosure Percentages
Arizona (0.3%)
Colorado (0.3%)
Michigan (0.3%)
Minnesota (0.3%)
Utah (0.3%)
States with the highest number of completed foreclosures in the past 12 months:
Florida (51,000)
Michigan (29,000)
Texas (26,000)
Ohio (23,000)
Georgia (20,000)

National Association Of Home Builders Sentiment Surges

The National Association of Home Builders’ Housing Market Index rose by 7 points to hit 70, which is the highest level since 2005.
According to a number of reports, economists had forecast an unchanged reading of 63; levels higher than 50 signal confidence. In addition, mortgage rates have also hit a two-year high.
As the home builder confidence soared in December they attribute it to a “post-election bounce,” the group said in a statement. “Builders are hopeful that President-elect Trump will follow through on his pledge to cut burdensome regulations that are harming small businesses and housing affordability.”
Two other parts of the index’s sub-gauges gained in December:
The measure of current conditions grew by seven points to 76
Expectations for the upcoming six months increased by nine points to 78.
Both of these indexes came in at the highest levels since 2005.
Prospective Buyer Traffic
The traffic of prospective buyers rose six points to a reading of 53, with any level over 50 being a sign of improvement. What is noteworthy is that December’s reading was the first time the traffic index cracked the neutral 50 line since the bubble’s peak more than a decade ago.
According to the survey respondents, customers who turned out after the election believed the economy will improve. Concomitantly, the 30-year fixed-rate mortgage averaged 4.16% in the week ending December 15th, as reported by Freddie Mac.
The National Association of Home Builders have seen regulatory costs surging 29% in the past 5 years.
The Sentiment Index has averaged a reading of 61 in 2016. The last time that happened, in 2002, builders were breaking ground on an average 1.7 million homes.

First-Time Buyers Make Up 35 Percent Of Home Buyers

The National Association of Realtors published their 2016 Profile of Homebuyers and Sellers
For most home buyers, the purchase of real estate is one of the largest financial transactions they will make. Buyers purchase a home not only for the desire to own a home of their own, but also because of changes in jobs, family situations, and the need for a smaller or larger living area. This annual survey conducted by the NATIONAL ASSOCIATION OF REALTORS® of recent home buyers and sellers provides insight into detailed information about their experiences with this important transaction. Here are highlights from the latest report.
■ At 31%, the primary reason for purchasing a home was the desire to own a home of their own.
■ First-time buyers made up 35% of all home buyers, an increase over last year’s near all-time low of 32 percent.
■ 88% of buyers recently purchased their home through a real estate agent or broker.
■ 88% of buyers would use their agent again or recommend their agent to others.
■ 8% of recent home sales were FSBO sales again this year. For the second year, this is the lowest share recorded since this report started in 1981.
PROFILE OF HOME BUYERS AND SELLERS 2016
In 2016, the share of first-time home buyers was 35%, a three-point increase over last year’s 32%. This figure gravitates back towards the historical norm at 40% of the market. The median household income of buyers increased again this year, likely due to a nationwide increase in home prices caused by a lack of housing inventory. Married and unmarried couples have double the buying power of single home buyers, and may be better able to meet the price increases of this housing market. Tightened inventory is affecting the home search process of buyers. Due to suppressed inventory levels in many areas of the country, buyers are typically purchasing more expensive homes as prices increase. The number of weeks a buyer is searching for a home remained at 10 weeks. Buyers continue to report the most difficult task for them in the home buying process is simply finding the right home to purchase. Tenure in the home has returned to a peak of 10 years again this year. Historically, tenure in the home has been six to seven years. Sellers may now have the equity and buyer demand to sell their home after stalling or delaying their home sale but may be facing reduced affordability to buy a new home.
This content comes from Realtor.com.

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