Posts Tagged 'summit'

So Now What?

April 2020

Prior to the spread of Coronavirus, the NJ real estate market was still in good shape.  But let’s be real, things have changed. The good news is that agents/brokers, attorneys and lenders are still making sure their current transactions get to the closing table. However, the bad news is that the number of buyers and sellers interested in jumping in now has fallen off very significantly.

So now what?  It mostly depends on how quickly those who lost their jobs and income because of the pandemic can recover.

OVER SIX MILLION Americans filed for unemployment last week, an enormous number that is only going to grow.  According to Lawrence Yun, chief economist for the National Association of Realtors, “Housing, like most other industries, suffered from the coronavirus crisis, but once this predicament is behind us and the habit of social distancing is respected, I’m encouraged there will be continued home transactions, with more virtual tours, electronic signatures, and external home appraisals. Many of the home sales likely to be missed during the first part of 2020 may be pushed into late summer and autumn parts of the year.” 

Gov. Murphy is calling Real Estate an essential business and is now allowing the basic unit of real estate, ‘in person appointments’, or one single showing of a home link to Murphy executive order.  Open houses are still currently off the table. Murphy worked with more than 40 financial institutions, including Citi & Chase to NOT initiate foreclosure or eviction proceedings for at least 60 days.  HUD announced this month that the FHA has been authorized to implement an immediate foreclosure and eviction moratorium for single-family homeowners with FHA-insured mortgages for the next 60 days.

I’m working with several buyers and sellers who would understandably rather wait, and despite a significant number of people deciding to ‘hold off’, there are still people needing to buy or sell, but they’re nervous.   So is everyone else involved in real estate transactions.  So as mentioned above, agents, attorneys, lenders and title companies are all working hard to get the closings/settlements that were already underway completed (including yours truly in the pic above doing just that).

Technology steps into the breach.  Expect more virtual showings, videos, and zoom chats to replace or precede anything previously conducted in-person. Expect digital documents to eliminate even more paper and signature pens.  Expect attorneys to limit the number of people at the closing table to comply with new federal and the World Health Organization guidelines.

Sellers – Agents are, for now taking less listings, and are trying to reassure sellers that they will only bring through qualified buyers, instructing them not to touch anything, escorting them the entire time they are in the home and then disinfecting door handles. Check your home value here. Buyers – Those that left assets in a bear market, may wind up with less cash for down payments. Interest rates are now at rock-bottom lows, but that won’t prevent sales from slowing and prices from coming down, as the economy flips from a strong seller’s market to a buyer’s market.

As interest rates fall, the demand for refinancing seems to be skyrocketing, but is volatile. In March, 30-year fixed-rate mortgages were hovering around 3.25 percent to 3.5 percent. Then, they were at 4 percent, as investors flocked to 10-year Treasuries, and the Fed announced it would buy mortgage-backed securities. Demand for bonds won’t help mortgage interest rates or housing affordability. If you’re looking to REFI, I have contact info for excellent area lenders, so reach out.

An expanding demand is city dwellers looking to flock to the suburbs to rent for more space and an easier time social distancing as Covid spikes and urban crowding becomes too difficult for many to handle.

Stay safe and help flatten the curve.

2019 Real Estate Projections

Where is the real estate market going in 2019?

newengland

Here are a few points I’ve boiled down and expanded upon (sourced from Realtor.com) that are likely to influence and illustrate the 2019 real estate market’s performance.

To see how this will affect you personally use the quick & complimentary home value estimator here – FIND YOUR HOME’S VALUE

  1. Home price growth will slow – perhaps down to 2%.  Many homes are still selling for a strong price, but receiving 8 or more offers as some did from 2014-2017 is becoming a much rarer occurrence.  For more info on local sales click this link – HOUSING MARKET TRENDS   for more specific HOUSING MARKET TRENDS
  2. Inventory will most likely remain moderate with only small increases, except for high-priced homes which will have significant inventory increases.  LOCAL INVENTORY INFO
  3. Millennials getting mortgages will slightly outpace GenerationX’ers and far outpace Boomers getting mortgages.
  4. The new tax law will be good for renters (keeping more income) and a mixed bag, but mostly negative for homeowners who may keep more income but will lose the SALT deductions.  The law no longer allows taxpayers the ability to deduct state and local taxes (SALT), so we’re being taxed twice on the same income. Those deductions on property taxes, along with a deduction on mortgage interest, used to provide a strong incentive for homeownership.  Maybe the new house representative class recently elected will stick up for the suburban voters who put them there and try to pass legislation to reverse or lessen the impact of the new laws, but I’m not holding my breath.
  5. Most experts are predicting that mortgage rates will most likely hit 5.5 percent by the end of the year. Some buyers will be motivated to purchase before the rates get too high and some may begin sitting on the sidelines waiting for the next dip. HOWEVER, after a recent meeting between China and the US about trade and tariffs, interest rates actually dropped. So ‘most experts’ may change their tune if the tariffs/trade wars keep putting a scare into the market.  For more about Mortgage-related questions – link instantly to expert MORTGAGE RATE, FINANCE INFO & PRE-APPROVALS  
  6. Most experts don’t see an obvious buyer’s market for awhile, because of moderate inventory and prices holding steady. Buyers will have to adapt their strategies to deal with higher rates and lower inventory.  Since higher end homes will have more inventory and more stagnant prices, there are more opportunities for buyers in the higher price ranges than in the entry level price ranges which have more buyer competition and less inventory.
  7. Despite remaining nominally a seller’s market, increasing competition from increased inventory will most likely bring down expectations for bidding wars, multiple offers  and getting whatever price a seller thinks he can get.. Sellers who price competitively should still be able to come away with a good amount of equity if they didn’t buy at the 2006 peak.
  8. The total number of home sales declined in 2018 compared to 2017 and is expected to decline further in 2019

link to full Realtor.com projections & article

New Trails in Watchung Reservation

watchungrez

The Union Co. Dept. of Parks & Recreation hosted a meeting and presented a Trails Master Plan that has been developed for the Watchung Reservation.  This plan will create new trails and open the Watchung Reservation to mountain biking. The meeting was held on Tuesday, March 7 at 7:00 p.m. at the Trailside Nature & Science Center. The map above shows proposed biking trails in light blue, hiking trails in light green and horse/hiking trails in purple.

Reps of the Parks Department and its trails planning consultant explained the plan and answered questions.  Those attending had an opportunity to offer their input on the plan. A similar meeting was held last October, primarily for mountain biking enthusiasts.

The Trails Master Plan includes the construction of 13 1/2 miles of new trails which will be restricted to mountain biking only.  The new trails will be spread throughout most areas of the park.  Portions of the Sierra Trail and other existing hiking or equestrian trails will be shared by all users, including mountain bikers.  Some sections of existing hiking trails will be closed.  Debate is still ongoing regarding possible effects on wildlife and neighboring property.

Real Estate conditions in local area

 

The Market in our area looks pretty strong.  Absorption rate is how many months it would take for the entire inventory of that town to sell given current conditions.  Inventory levels remain low and buyers are very active.

Local Market Absorption_08.21.2016

 

Summit Restaurant Week

 

food

 

 

 

Summit_diner_1024x658

 

 

 

 

 

 

 

 

 

 

YUM, Check out the wide selection of quality food in Summit from February 20 – March 8th

Click to access Participant%20Listing%20Flyer.pdf

 

 

Year End Sales figures for nearby towns

yearend

Leaf Removal schedules in a few Essex & Union county towns

DSCN3224

You may have already raked or blown your leaves, but mysteriously they just keep piling up anyway.

The green and less expensive thing to do is actually to use a mower to shred them and leave them on the lawn  as fertilizer.  You don’t need to mow in your garden, just leave them there as extra insulation for the  plant roots that need a bit of protection from the snow.

But if you just want them gone, here is a list and links to more detail about leaf removal schedules in a few Essex & Union Co. towns.

South Orange

all streets by December 6,  unfortunately the town map is so tiny, it’s hard to tell which streets are prior to the sixth

Spring Market Heats Up

Please look at what’s going on in New Jersey’s bedroom communities 🙂   Homes going under contract in the month of March for South Orange have doubled from 2011 to 2013.  The vast majority of the other towns listed below have also shown significant gains.

underc13

More confidence in the economy, low prices and low interest rates have finally pushed buyers back into the market.  A lack of inventory is making for bidding wars on the best homes and shorter selling times for other homes.  Its April and if you’re thinking of selling, now’s a great time to do so.

My 2012 sales

Here are pictures of the Essex and Union County homes I guided to closing in 2012.  There were also rentals and referrals which were not included in the gallery below.

hickoryExt1 copy     1677springfieldav     meadowbrookpl

secondst    2918560_0     2928983_1-1

2919242_0-1    2886057_0    2934414_0

2947969_0    2889203_0

July Real Estate Market Conditions

The local real estate market continues the turnaround begun early in the year.  Here is the July update on Real Estate Absorption rates in the area.  The absorption rate number is how many months it would take for the current inventory of listings to sell given the current monthly rate of homes going under contract.

As buying has been brisk this spring and early summer, inventory has remained stable.  Its possible the rates will drop even further as less new listings hit the market in the fall and the remaining inventory continues to be sold.


Categories