Guide Me Home to North Jersey

The market has never been better to buy a house and there are several factors contributing to it.

The first is the much publicized Government homebuyer tax credit which has been extended to July 1st, with a house being under contract by April 30th. Recently, Robin Dustow from Wells Fargo Bank (robin.a.dustow@wellsfargo.com), met with us to explain the parameters of this tax credit. It has been enlarged to not only include 1st time home buyers (anyone who has not owned a home for the past 3 years), but also anyone who has lived in their current home for at least the past 5 years. Listed below is the criterion that needs to be met to qualify.

Source: National Association of REALTORS® Government Affairs Division

Congress has extended and expanded the homebuyer tax credit. The modifications in the column labeled “December 1 – April 30, 2010” become effective when President Obama signs the bill. All changes made to the current credit become effective on that date, as well.

The second factor that helps prospective buyers is the loan limits on conforming loans has been extended. The limit is currently $729,750 and was set to expire on Dec 30th. Had it expired, it would have reverted back to $417,000 which means any loan above this amount would be considered a jumbo loan. Jumbo loans are usually harder to obtain and have higher interest rates. The higher loan limits for a conforming loan have been extended until December 31, 2010.



Lastly is the mortgage rate itself, which the government continues to keep artificially low. The chart above shows how historically, when rates have been low, they spike quickly afterwards.

Taking all these factors into consideration, added to house prices being down and still being able to purchase a home with as little as 3.5% down, now is certainly a good time to buy!

Information comes from others and should be verified.

Posted by:Nadine Gelinas-Coffey

Whether you’re a first time home buyer, new to the area, or finally getting around to the laundry list of home improvement changes you’ve been wanting to get to over the past 5-10 years, there are two looming questions to ask yourself; “Will the market value of my home hold up to the money I plan on investing, and who can I turn to make these improvements?”

For the first question, if you are planning a large renovation project, your best option is to talk to a local Realtor who is knowledgeable in your area. They can give you a free market analysis of your home’s value and the value of the homes in the surrounding area.

Read the rest of this entry

In my first blog in this series, I talked about how homes and sellers are competing with each other in this buyer’s market in three ways. In the last segment, I talked about price.

Presentation is the second competitive factor. Today, buyers are less willing to forgive anything negative in their eyes since there may be another home that does not have that negative!

Roofs that need repair, water in the basement, or neglected landscaping are powerful deterrents to buyers, even if you have the perfect floor plan! Before closing, the buyer will schedule a home inspection. The results will point out any issues and the seller will have to either fix them or negotiate. The ultimate closing price will fare better if any problems are taken care of up front.

Other negatives might also include strong decorating styles, messy housekeeping, wood work in need of paint, smells, or difficulty viewing a property. The main rules here are to simplify and make your home spacious and neutral. You will end up throwing away lots of unnecessary things before you move, so why not do it now? Buyers need to imagine things such as where their furniture will go, where will the TV go, and how can their lifestyle fit in to your home. Don’t make it complicated! If you are a seller, your agent will be able to tell you what needs to be done.

What is the third way in which homes and sellers are competing with each other? Check back here soon for Segment Three of this series!

Posted by: Mary Jane Benedetto

In these dicey economic times, there are buyers who truly want to buy a new home. They have a mortgage pre-approval, a good idea of where they want to live and are looking faithfully at homes with a buying mindset. They are perfect buyers except for one small detail: they don’t want to own two homes because they aren’t sure they can sell their current home quickly!

These circumstances are really no different than normal times. It’s strictly a matter of confidence: buying and selling a house concurrently used to be the rule, as all involved had confidence it would all work out. But today, different buying strategies and selling strategies must be used. In effect, two hats must be worn following one rule: It’s a buyer’s market!

The serious buyer or seller will find a market and an inventory very different than a few years ago. All are to the buyer’s advantage while some are to the seller’s advantage! Some of these differences are a more leisurely pace of viewing homes, longer “Days on Market” than previously seen, more homes to be seen and judged, quicker and bigger price reductions, and buyers and sellers who are either realistic or idealistic. Homes and sellers, instead of buyers, are now competing with each other!

How do they compete? Bookmark this website and check back often!

Posted by: Mary Jane Benedetto

Everywhere I go, people ask, “How’s the market?” I’m glad they ask. I’m happy for the opportunity to spread the good news that buyers are buying, houses are selling... if they are priced right. Quite simply put... if your house is the most attractively priced house for your market you win the buyer.

Sometimes buyers are competitively bidding with each other on those right-priced houses. This should not be surprising to hear. It makes sense that if something is well-priced, the knowledgeable buyer will recognize it and go after it. Many buyers have been in the market for a long time now. They will recognize a good value when they see it.

First-time buyers are particularly active right now. This is more good news. The first-time buyer market is extremely important to the real estate market. They are the engine that moves the train of recovery. When a first-time buyer buys a home, he allows that homeowner to then move up…moving that train.

If you’re a first-time buyer…or want to be... take heart. First-time buyers by definition have nothing to sell in order to buy, making them particularly attractive buyers for sellers. And there are mortgage products available that make it possible for a buyer to buy with as little as 3 ½% down. A first-time buyer with little cash but good credit can secure a loan in this strict mortgage climate.

Good news: Prices are down, mortgage rates are down... and NOW is a great time to buy.

Posted by: Alaina May Pyontek

Go to any social event – yesterday mine was the Peapack Gladstone 10 & 11 year old basketball scrimmage- and you will hear what’s on the minds of your friends and neighbors. In the top 3 is probably the real estate market.

So what are the latest housing statistics? The S&P/Case-Shiller Index reports that the annual change in the home pricing for the 20 metropolitan areas it tracks is down 18% through October 2008. The biggest losses were in the Sunbelt – Las Vegas and Phoenix down over 30%. The NY Metro area is faring better at -7.5%.

The Otteau Valuation group reports that NJ Contract Sales in November ran at 30% below November 2007. On the bright side, mortgage rates have recently come down substantially, with 30 year fixed loans running at just over 5%.

Some creampuff homes are out there for sale, with pricing not seen in the last few years. Once first time homebuyers jump in, the domino effect will work its way up the price curve. And whatever 2009 brings, I will enjoy the many pleasures of living in this area, including kids’ basketball games. Final score 24/24.

Click here for more on the S&P/Case Shiller index.

For more on the Otteau Valuation Group click on: www.otteau.com

Posted by: Susan Wagner