Here in the Somerset Hills (which for the purposes of this article we will very loosely define as Bedminster, Bernardsville, Far Hills, Bernards Twp, Tewksbury, the Chesters the Mendhams and Harding Twp) the real estate market has certainly picked up. While we have become accustomed to experiencing a spring market as early as January or February in recent years, it wasn’t until April of 2009 that we began to see an increase in contract activity. The improvement in the real estate market between the 1st and 2nd quarters of 2009 is striking and includes a number of other encouraging signs too.
Most notably, contract sales in the 2nd quarter of this year have almost doubled from the 1st Quarter. In Q1 there were a total of 167 sales, as compared with 321 in Q2. Lest we attribute the increase simply to a seasonal pattern, in 2008 there were 209 sales in Q1 and 307 in Q2, and in 2007 the numbers were 316 and 405 respectively. So while we are accustomed to seeing an increase in contract activity between the 1st and 2nd quarters, this year’s increase has been significantly more dramatic. Before you break out the champagne, keep in mind that transactions YTD are still running approximately 6% below our 2008 numbers and almost 50% below 2007.
In several other areas the performance of our real estate market also improved, including average sales price, days on market and sale price to list price ratio. Average sales price went from $568,184 in Q1 to $687,778 in Q2. Average days on market for homes that have closed declined from 101 days to 96, while the percentage of final list price achieved went from 92% to 93.4%. While these changes are small, they do reflect a positive trend in the market.
This good news is a welcome reprieve from the slide we have been experiencing for years in the New Jersey real estate market, but it is important to keep in mind that with inventory levels still so high, it may be many more months before we hit bottom and prices begin to stabilize. The good news is that for now it looks like we are headed in the right direction.
Posted by: 
John Turpin
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 presentation.
Pre-approval is the third competitive factor. Today, when sellers consider an offer, they want to know if the potential buyer is pre-approved. This is different than pre-qualification, a process in which the buyer, based on stated income and other financial information, is told he or she are likely to be approved. It isn’t binding!
Pre-approval is a powerful competitive factor for the buyer and seller as both buyer and seller are winners. A pre-approval clearly says to the seller that the buyer can afford the house and will obtain financing. If you are buying, you have a big competitive advantage when you make an offer with a pre-approval in hand. If you are selling, and an offer comes in, you know that a pre-approved buyer is a qualified buyer who has started the mortgage approval process. Now you can both move on to other negotiations and ultimately strike a deal.
Posted by: 
Mary Jane Benedetto
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 my last blog, I talked about how homes and sellers are competing with each other in this buyer’s market in three ways. In this segment, I’ll talk about price.
Price is the most obvious competitive factor. The value of a home is not in the seller’s eye, it is in the buyer’s. As a former retailer, let me put this in other terms. When a retailer (seller) purchases and prices a sweater, the seller is, in effect, valuing it. However, if the buyer disagrees with the price for styling, color, or fit reasons, the seller must reduce the price of the sweater so that it will sell. In effect, the buyer has now told the seller the value of the sweater. This is exactly what is happening in today’s Real Estate market.
The result is that the buyer can buy more house for the money, and the seller must be realistic in pricing the house so the buyer agrees with the value. The seller must approach the sale as a business decision, not an emotional decision. The seller wins with proper pricing because they are now able to sell the house.
Research shows that homes priced too high will not only take longer to sell, but usually achieve a lower sale price than similar homes that are priced more realistically. I like to tell clients to price their house where they honestly think it will sell, and be prepared to reduce the price, as previously agreed, if there is no interest or activity.
What is the second way in which homes and sellers are competing with each other? Check back on this blog for Segment Two 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
Here in the Somerset Hills of New Jersey we are very lucky to have an array of examples of historic architecture dating back to pre-revolutionary times. The earliest homes in the area date to the 1600s and display such charming traits as hand-hewn beams, mortise and tenon joinery and huge fireplaces with beehive bread ovens. It is almost impossible to imagine being the original owner of these homes, living with no heat other than that coming from the fireplace, baking your daily bread in a brick oven and braving whatever social and political climate prevailed at the time!
Fast-forward to the 1800s when the prosperity that had arrived in the new world began to be evidenced in the homes people were constructing. Greek Revival, Federal and other popular styles of this era still line the streets of our towns and create the charm that lures many people to our area. These homes often boasted high ceilings, better light through larger and more numerous windows, and later in the century, coal-fired central heating systems.
By the early twentieth century two very interesting trends in real estate had begun. On the one hand there were immensely successful business men moving out from New York City to create lavish compounds. Many of these homes were enormous, even by today’s standards, and often sat on hundreds of acres where a working farm served the needs of the homeowner and the large population needed to maintain this lifestyle. At the same time the first attempts at what eventually became tract housing began cropping up in the villages. Small groups of modest homes were constructed in a row, each one very similar to the next, for the purposes of housing the working men and women of the town. Remaining examples of these homes often display the Victorian traits popular at the time, with gingerbread front porches and steep gables.
A stunning example of early American architecture can be found in Tewksbury Township along the Rockaway Creek in the stone and shingle home aptly named, “Creek House”. Currently for sale, this home offers all the charm of a bygone era while sacrificing none of the amenities of today’s lifestyle. Four bedrooms plus a guest cottage with a thatched roof, five fireplaces (including the original cook hearth) and a detached garage ensure one’s comfort while beautiful gardens and a babbling creek on a winding country road make for an idyllic setting. For more information on this home, please
click here.
Posted by: John Turpin
Somerset Hills—a region located in northern Somerset County, New Jersey—offers a quality of life like no other. Comprised of Bedminster Township, Bernards Township, Bernardsville, Far Hills, and Peapack-Gladstone, Somerset Hills is one of the nation’s most desirable residential areas for its “rurban” atmosphere and beautiful rolling countryside that lends itself to a variety of outdoor activities, such as golf and equestrian sports. The region is conveniently perched between two major cities—Philadelphia and New York—and boasts a dynamic business climate.
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