In last Sunday’s New York Times the headline in the Real Estate section was “
For the Brave, the Moment is Now”. The article goes on to say that in New York City, in the last few weeks, first time homebuyers are beginning to take advantage of depressed prices and very attractive mortgage rates. Buyers without a place to sell, who have stable jobs and good credit are certainly in the drivers seat right now. Many who previously were priced out of the market can now afford to own their own home.
Traditionally, as the New York City market picks up, the increase in activity ripples out to surrounding areas. The homes that are moving in our area tend to be the lower priced homes. Fourteen Condominiums or Townhomes went Under Contract in the last month, in the area of Bernards Township, Bedminster and Bernardsville, which is two more than the same time last year. So the dream of home ownership is now becoming a reality for some who previously found it just out of their grasp.
Posted by:
Susan Wagner
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
Here in Tewksbury the real estate market has not escaped the downturn that the rest of the country has suffered, but there are still some bright spots. In the past 45 days, 12 homes have been listed in Tewksbury while four have gone under contract. This is good news when you consider that in all of 2008 Tewksbury averaged 4.66 sales per month.
Of the 12 new listings, the average list price is $1,557,463 and the median list price is $849,000. Of the 4 that have sold the average list price is $756,700. While higher priced homes continue to be listed, it is clearly the homes under $1,000,000 that are selling.
In the 4th quarter of 2008 ten homes sold, and at this moment four of those homes have closed. Of these four closed sales the average sale price was 98.8% of final list price. Two of these sales were listed below $400,000 and sold at or close to their list price. The other two were higher priced and over the course of several listing terms took and average reduction of 28.5%. This is a clear indication that even though many buyers are making very low bids, homes that are selling are those where the seller has reached a realistic listing price and the buyer recognizes the value.
The lesson for sellers is clear: Price your home correctly and you will be one of the relatively few homes to sell in this market. If you choose to “test the market” with a higher price, you are likely to spend a long time on the market and take several reductions along the way. With the market declining at a significant rate, it is plain to see that the longer your home takes to sell the lower the price you will obtain.
Posted by: 
John Turpin
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
