I’ve been in the business since 1983, when the interest rates were about 14% and on their way down.  Since that time, I’ve seen fluctuations in home prices, lending practices, mortgage rates and so much more!  I don’t remember ever seeing the stars lined up so perfectly for qualified New Jersey buyers.  If you are interested in financing a  midtown direct home in New Jersey, take note of the following current rates.

As of Sunday, November 6th, 30 year home loan rates are averaging 4.08% and 15 year home loans are averaging 3.37%.  30 year jumbo home mortgage loans are down as well, averaging 4.49% and 3.73% for a 15 year loan.  3 and 5 year conforming adjustable rates are down as well, and 7 and 10 year rates have remained stable, while 1 year conforming adjustable rates have seen a slight increase.

These rates allow more buying power for clients interested in our New Jersey homes, while rental prices continue to rise.

In this fall market, prices are down further in our Midtown Direct Train Line Towns than they are in the spring because there is less competition at this time of year. As a matter of fact, every house I’ve ever bought has been in the fall market. That happens to be a coincidence, but I CAN say that I would have paid more for my houses if I had waited for spring.

My point is,  the smart buyers are actively looking for homes and making offers because they see that this is opportunity time.   I don’t want to mislead you into thinking you can buy ANY house at ANY price because this is not the case, but if a seller is realistic and motivated to sell the house that YOU happen to like, then you will do better now, then you will in the spring when there are more buyers competing for the nicer houses.

Remember, a house is not just a financial investment. It’s a lifestyle investment for your family – schools, neighborhood, where you make your memories, so if you can find that now, with these low interest rates, and know that you will  live there for 5 or more years, then let’s sit down for a consultation and see if buying now makes sense for you.

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Whether you are buying or selling real estate in New Jersey, you can benefit from having an understanding of the local market.  The average listed sales price of a Maplewood New Jersey home for the month of August, 2011 was $327,400, with a median sales price of $517,500 for sold Maplewood homes.  Housing inventory has decreased in Maplewood when compared with  August of 2010, with 144 active listings being reported for the last day of August for Maplewood versus 161 in August of 2010.

The average listed sales price of a South Orange, New Jersey home for the month of August, 2011 was $422,000, with a median sales price of $397,000 for sold South Orange homes.  Housing inventory has decreased in South Orange when compared with August of 2010, with 110 active listings being reported for the last day of August for South Orange versus 134 in August of 2010. The big complaint of most buyers right now is the lack of inventory in these towns which are in such high demand, with their easy commute into Manhattan.

The number of closed listings for both areas combined in August was 52. The average number of days a home was on the market was 67 days in Maplewood and 112 in South Orange. If you would like to learn more these statistics, please click here for Maplewood and click here for South Orange. These statistics only include the current listing information gathered from GSMLS, so this report does not represent a full history of the property listings.  If you need information about the history of a specific listing, please call us at 973.552.2419.

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Whether you are buying or selling real estate in New Jersey, you can benefit from having an understanding of the local market.  The average listed sales price of a Millburn/Short Hills, New Jersey home for the month of August, 2011 was $1,250,000, with a median sales price of $947,926 for sold Millburn/Short Hills homes.  Housing inventory has decreased in Millburn/Short Hills when compared with August of 2010, with 94 active listings being reported for the last day of August for Millburn/Short Hills versus 107 in August of 2010.

The average listed sales price of a Summit, New Jersey home for the month of August, 2011 was $740,000, with a median sales price of $860,000 for sold Summit homes.  Housing inventory has increased in Summit when compared with August of 2010, with 96 active listings being reported for the last day of August for Summit versus 100 in August of 2010. The big complaint of most buyers right now is the lack of inventory in these towns which are in such high demand, with their top schools and easy commute into Manhattan.

The number of closed listings for both areas combined in August was 64. The average number of days a home was on the market was 42 days in Millburn/Short Hills and 56 in Summit. If you would like to learn more these statistics, please click here for Millburn/Short Hills and click here for Summit. These statistics only include the current listing information gathered from GSMLS, so this report does not represent a full history of the property listings.  If you need information about the history of a specific listing, please call us at 973.552.2419.

The SUE ADLER TEAM website The SUE ADLER TEAM website

It is well known by NJ Midtown Direct Trainline Town real estate professionals that a well priced home generates tons of  interest amongst buyers, and creates demand for that house…. in any market. It actually creates a Seller’s market, even when it’s a Buyer’s market.

( Above info from GSMLS for Summit, Millburn/Short Hills and Chatham NJ sold listings from March 2010 through February 2011)

The average list to sale price ratio for Sue Adler Team listings sold over the past 12 months is 99.3%. When you are interviewing realtors, choose wisely based on the marketing strategy that will create the most demand for your house. That is how you will get the highest price and best terms for your house.

As you can see from the chart, the longer your house is on the market, the more buyers feel they can negotiate on your price, which puts the buyer in the driver’s seat. When a house sells within the first couple of weeks, there is a sense of urgency because this is when you get the most traffic on your house. The initial group of buyers looking at the house are the ones waiting for a great house to come on the market and the motivated ones are ready to jump all over it if they see the value.

As the “Days on Market” grow, the number of showings decrease – the house typically becomes stale,  invisible, and basically forgotten. It might as well be “out of the market” if the price isnt adjusted to where the buyers will see the value. Buyers worry about overpaying for it because they feel that if no one else bought it, it must be overpriced so they make a “low ball” offer.

Sellers unwilling to adjust their pricing based on the feedback of the market – “I’m not in a hurry”  or “I’m not giving my house away ” or ” I need to get $x” should consider taking their home off of the market. Otherwise it will be frustrating for all parties – the Realtor, the Seller, and even buyers who get annoyed when houses are overpriced. Remember, all of the marketing in the world will not sell an overpriced house.

On the flip side, Buyers, you can’t steal that brand new listing with the new kitchen on the quiet street.  However if a seller has overpriced their  house, the more time that goes by, the more the Original list to sale price ratio is  in your favor. Very frequently however, a serious price reduction can have a similar effect as a new listing has, so remember, it’s the ORIGINAL list price that these numbers are based on, not the reduced price amount.

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It is hard to believe that half of 2010 has come and gone. Looking at our local statistics for Millburn/Short Hills we see some interesting activity in the first quarter. Inventory was up significantly over 2009 but under contracts seemed to remain the same until March and April when we see a significant jump.  Possibly due to the home buyer tax credit.

As we have all seen over the past few weeks the market seems to be slowing down a bit but inventory is leveling off.  It will be interesting to see what the third quarter numbers bring as buyers rush to complete their home purchases before school starts.

To view more charts and specific homes sales for Millburn/Short Hills Click Here

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Bulletproofing your real estate transaction

As many predicted, with rates on the rise, pent up demand, and the tax credit deadline approaching, NJ real estate market activity this spring has really picked up along the Midtown Direct Trainline towns, and it has once again become the norm to see multiple offers on homes that are priced well and in great locations

The difference is some buyers initially dont believe it. Then once  they lose a house or two in a multiple bid situation, and later become  the winning bidder who paid above asking price ,  they may try to negotiate the price back down during inspections or from low appraisals.  

The smartest thing a listing agent can do while weighing multiple offers, in my opinion, is to try to bulletproof the transaction right then and have the buyer agree that the inspection is for major defects only and that anything disclosed in the Seller Property Disclosure Statement is NOT  an inspection item, because the offer price should take those disclosed items into account.

Also, when it comes to weighing offers,  if the buyer is putting a significant amount down, then an appraisal should not be an issue and that’s a big deal today.  If a potential buyer is putting only 10-20% down, then it can be an issue if the house doesnt appraise so, when deciding between offers, if there is either  an appraisal contingency or a mortgage contingency, try to get the buyer  to agree that the appraisal will be completed within 10 days ( which is the about the same as an inspection time frame), and  to be performed by a LOCAL appraiser. ( And most importantly your agent should be there to supply the comps!)

If the buyer says they own a house but doesn’t need to sell first, great, but make sure the contract states that AND the pre-approval letter states that the sale is not contingent upon the sale or settlement of any other real estate.

If  the winning bidder agrees to the above and  during attorney review tries to change the terms, a good agent will keep checking in with the back up buyer’s agent if it makes sense to go that route.

The New York Times Article, in which I was quoted today spurred me to write this blog post.  Luckily, so far in 2010, I  have not had the experience that the first buyer backs out and the house sells to the 2nd or 3rd back up buyers, as agents in this article state, and I do strongly feel that bulletproofing the transaction when weighing offers is the key to that.

Bottom line is, make sure you hire a Listing Realtor who is not only skilled at creating the demand for your house, but who is also knows how to put you in the best possible position to protect your interests during the transaction.

Sue Adler www.SueAdler.com (973)464-9129 , specializing in Millburn, Short Hills, Summit, Maplewood, South Orange, Livingston, Chatham New Jersey real estate

The SUE ADLER TEAM website The SUE ADLER TEAM website

The inventory along the NJ midtown direct trainline towns is the lowest I’ve seen in years, so I am playing “Matchmaker” and writing this post on behalf of the Sue Adler Team’s buyers who have seen everything currently on the market and are waiting for their perfect home to appear!

The charts below ( Click Chart To Page Through To Each Town) show you the active inventory and under contracts in Millburn/Short Hills, S.Orange, Maplewood, Livingston, Summit and The Chathams.

We pulled each quarter over the past year. As you can see, homes are selling … buyers are no longer on the sidelines, but there aren’t as many to choose from. What this shows, and what we , as realtors are experiencing, is that the nice, well priced houses are selling right away. If you are curious to know your home’s value in today’s market or would like to consult to see if this is the right time for you to sell,  just give me a call (973)464-9129  

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“Matchmaker, Matchmaker, find me a home…. catch me a catch!”

The Sue Adler Team has a Home Matchmaking Section on our website.  We only add buyers who we are actively working with, and that are preapproved. If you’re a homeowner in Millburn, Short Hills, Summit, Maplewood, South Orange, Livingston, Chatham, Madison, Berkeley Heights or New Providence, and are thinking of selling your home in the next 6 months, please check out our team’s buyers and let me know if your home could possibly be a match.

The SUE ADLER TEAM website The SUE ADLER TEAM website

Congress heard you on the need to both extend and expand the homebuyer tax credit to continue stimulating the housing sector of the economy. The Senate voted 98-0 on Wednesday and yesterday the House voted 403-12 on legislation that includes the extension and expansion of the credit. The President is expected to sign the legislation, perhaps as early as today.

The biggest change in the bill is that current homeowners who are within the income limits posted on the chart , can get a $6500 credit for a  home up to $800,000.  This will hopefully stir up the “move up buyer” market.

Dont hesitate to call if you have any questions.

Yours to count on,

Sue Adler

(973)464-9129

The SUE ADLER TEAM website The SUE ADLER TEAM website

    Last night I came across a  brilliant vlog post  by my good friend in Austin, Krisstina Wise from The Good Life Team. Before you read on, watch her video, especially if you’re looking for a house, but really want to be sure we’ve hit  bottom first.  Krisstina  beautifully explains “the buying zone”, the  the window of opportunity buyers currently have in this market while the prices and interest rates are this low at the same time.

On a local level,  NJ home sales have risen for 6 straight months compared to the national existing home sales rise of 3 consecutive months.

Jeffrey Otteau, New Jersey real estate market analyst, shows in his graph below, that in June contract sales in NJ were higher than June 2008′s pace, signaling a significant break through for our market. The last time NJ home sales have risen for 6 straight months was back in  2003 during the home buying frenzy fueled by the sub-prime lending boom. The monthly sales pace in NJ has increased 115% since the beginning of the year.

Clearly  many home buyers are taking advantage of these low prices, low interest rates and the first time buyer tax credit , which are all adding to  the housing   market recovery. The problem for buyers who really want to buy is the lack of inventory right now in our Midtown direct towns. Unsold inventory declined by 600 homes in June primarily due to the 7,500 home sales during the month, causing a rise in demand for good, well priced homes , especially in the entry level market.  

So why is inventory so low?  I hear many potential sellers say that they are “waiting until the market comes back” – how long will that take and what will the rates be then?  Certainly we cant expect the market to increase more than 3-5% a year once we do have a recovery.  Today many home owners are  in a catch-22  because they need to sell first, yet don’t want to sell without having found their dream home first,  which they ultimately miss out on because they aren’t in a position to buy.  There are many options that your Realtor can help you with to avoid the catch 22 ( which I will write a blog post on another time) 

What can we expect in the next few months?

All signs seem to be pointing to an active fall market - For Sellers, it’s a great opportunity  to attract the first time home buyers looking to beat the December 1st deadline of the $8,000 tax credit .     I’d love to hear from the mortgage or financial industry experts- how long can interest rates be held this  low because once the rates jump,  affordability will drop again, and the market will most likely be at another stand still. 

If you’re interested in home sale prices, stats and trends for each of our midtown direct train line towns  I update these monthly. Feel free to sign up to receive them.

Yours to count on,

Sue

Sue Adler  www.SueAdler.com #1 Keller Williams Agent in NJ 2005 -2008

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Over the past two weeks,  did you notice how many homes in our NJ Midtown Direct Trainline Towns are selling????  

I just went into GSMLS and searched all homes in  Millburn, Short Hills, Summit, Chatham, Madison, Maplewood, South Orange and Livingston, and found that 95 homes have gone under contract in the past two weeks. This does not include all of the ones that are in attorney review! 

Compare This To the last 2 weeks of  March, where only 45 homes went under contract in these towns, and the last 2 weeks of February where there were only 18 homes to go under contract.

Why now??

Move up Buyers finally are selling their existiing homes and there is finally enough inventory for them to want to make the upward move.

MORE  NJ Sellers are pricing right, staging their homes and listing with Realtors who are creating a sense of urgency for them  ( yes, shameless plug) , so those 95 homes are selling, while others remain sitting. 

The RATES-  I just refinanced at 4.625%.  How long do you think they’ll stay below 5%?

Its Spring!  The clock is ticking to get in for the school year – beats the 30k per year private school tuition.  The 3rd baby has been born and the 1 bedroom apartment won’t work anymore, etc… life goes on.. you get the picture.

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