Real Estate Beyond Four Walls

Home prices in New Jersey overall have been edging upward. We have been seeing this happen quietly over the past 10 months. The strongest month was December 2012. What we have going for us in these local communities is an overall lack of inventory. Now that the Spring Market has begun, we are seeing more and more buyers enter the market. Many are sitting on the sidelines awaiting the arrival of new listings. We expect an extremely busy time for purchases and sales over the next few months.

If you are considering a sale, the two key factors that are of the utmost importance remain the following:

Have your home staged! You may feel that if you straighten up and clear out the clutter you will be good to go. Not true. While that is certainly Step One, bringing in a stager can net you 2-5% more in your pocket when you receive an offer. A stager helps you to stand out in the crowd. It shows pride of ownership as well as allowing the highlights of your home to shine.

Secondly, make sure your home does not have any inherent problems such as an underground oil tank, a roof that leaks, gutters that are full of leaves, electrical issues, a toilet that runs all the time, or walls in dire need of touch ups. What I offer to my sellers is a free mini-home inspection by a certified ASHI local home inspector. This allows you to make sure that you do not have any major issues that will end up costing you more money during an inspection. It gives you the opportunity to correct certain things in advance. My sellers really love this service!

Here are the local statistics in our market area:

Here we are at the beginning of February and the inventory is still very low in all of these local markets. The buyers are already beginning their search for a new home and many are waiting on the sidelines for the new listings to pop up on the right streets and in the right price points.

We have seen a slight overall price increase over the past 12 months of about 4-5% and we should see this hopefully improving slightly over the next few months. Interest rates remain very low but we will begin to see them edging up as the year moves forward.

We are seeing many people who have been in rentals begin to venture out to see what they can purchase as first time home buyers. This is all extremely healthy as it keeps the cycle going which allows the various sellers to move up to larger homes and ultimately those in the larger homes to begin their downsizing.

Here are the local statistics:

2013! Here we are at the beginning of what is expected to be an excellent year for Real Estate.

Consumer confidence has greatly improved and we expect that this improvement will continue to flourish. The confidence level at the end of 2012 was at its highest since 2008. This more positive attitude will carry through 2013 and drive consumers who have been “sitting on the fence” to move forward with their homeownership decisions. The creation of “certainty” in the real estate market and in the country in general has contributed greatly to this mind shift that we are seeing.

Many sellers have been sitting on the sidelines for more than five years now, waiting for the market to improve so they can comfortably sell their home. We will see many sellers who are “moving up” and are finally ready to buy something larger when they can still take advantage of the historically low interest rates. We will see the 35-45 year old buyers being the ones driving this part of the market.

Overall, the increase in home equity is going to translate into increased movement in the market, whether moving up, downsizing or just people selling and making a lateral move. All of the above points to a significant rise in home sales for 2013.

Here are the local statistics of your market as of January 6,2013:

**If you would like an immediate opinion of your home value, send an email to info@njishome.com with your address and number of beds and baths and I will immediately forward my turnkey SMARTZIP marketing report to you. It will give you many details about your investment, inclusive of other homes sold in your neighborhood and for what prices.

**Please call me for a free home sale consultation. I offer extensive services to help to get your home ready for the market. My advertising campaigns are comprehensive and will get your home sold.

Much of my business is by referral for which I remain very grateful. If you have any friends or neighbors in need of real estate services, please pass on my contact information. It will be greatly appreciated.

As we approach Christmas and the New Year, we are seeing the market slow down for obvious reasons... people are busy! Right now, I am seeing a lot of people searching online in an attempt to scope out the market. For some, the days off over the next few weeks will enable them to get out and actually take a look at some properties. Many, however, will put off their search until 2013 begins. At that point, we will slowly begin to see the inventory increase in tandem with the number of buyers who will be looking to make a purchase.

2013 will see many of the boomerang generation finally moving out of their parents' homes and either renting or purchasing a small property. Mortgage rates on fixed loans are expected to remain at their 65-year lows, at least for much of 2013. Housing affordability index remains at great levels, encouraging anyone with job stability and good credit to be able to qualify for a loan for a purchase. In short, there is an overall expectation that about 1.25 million households will be created in the U.S.

As a result of all of the above, we are expecting a very busy real estate market, which dependent upon weather, will start by the middle of January. This is when one needs to be prepared for the multiple offer routine to set in on the properties that look great and are priced to show value.

If you are contemplating a sale, my advice is to start the process NOW. When your home goes on the market, it must show in its best light. Oil tanks must come out of the ground before you list your home. Many buyers are not even looking at the house that has an underground tank. The first option is to convert to gas; second would be to have the tank relocated to the basement if you wish to continue with oil heat.

Please call me for a free consultation. I offer extensive services to heip to get your home ready. My marketing plan is comprehensive and will get your home sold.

To all of my readers…

I am happy to be back to you and will give you a thorough update on the New Jersey Real Estate Market.

As we look at how the market performed so far this year, we could honestly say that it has been the most active market since 2005. Inventory is down approximately 16% statewide which translates into about 11,000 homes. The supply statewide is at about 9.7 months as compared to 14.2 months just one year ago.

We have seen sales up by double digits for each of the past 12 months as compared to same month last year. In August, we were up 29% and in September we were up 23%. The October numbers are taking a bit longer to compute due to Hurricane Sandy, but we know these will be down in most communities.

Prices have seen some upward movement in the more active areas of NJ (which includes all of our neighboring towns). This is, of course, as a direct result of the reduced inventory.

Interesting to note is that Hudson County has seen the biggest price increase. This is due to the fact that the Manhattan market has fully recovered and there is now spillover to Jersey City and Hoboken.

Now, to take a peek at what the results are from the visit from Sandy. 284,000 homes with a total estimated value of 3.4 billion have been lost. The end result of this will be a greater demand for housing in various parts of the state. People who were displaced will be making new decisions about their lives and where they will live. 200,000 automobiles were also lost in the storm. All of these will cause a surge in building: new construction, purchasing of building materials, appliances etc. This will give a boost to the NJ economy even though this is not how we would have wanted this to take place.

Our snapshot of Spring 2013 is extremely encouraging! If we don’t fall off of a fiscal cliff, if the Middle East does not explode, if the European debt crisis does not get worse, or if we don’t have 2 feet of snow constantly on the ground, then we are looking at a strong real estate season. We expect the biggest and most vibrant selling and purchasing “frenzy” since 2005!

Here is a snapshot of recent activity in all of our local towns:

I am now booking appointments to come in and discuss the selling possibilities for your home. I will discuss your property taxes, what improvements you may consider taking on and also give you an idea as to where your home could be priced.

I am also asking for you to think for a moment if you have any friends or family that may be considering selling their home or anyone who is considering moving to the area. Remember, I service all of the surrounding area. As a matter of fact, even if it is out of my area, I would be happy to refer your friends and family to a great agent who would take excellent care of them!

REMEMBER... I AM NEVER TOO BUSY FOR YOUR REFERRALS!