Guide Me Home to North Jersey

In spite of all the forecasts about higher mortgage rates happening in the latter part of 2010 (up to 6%), the unexpected strengthening of the dollar against the Euro has pushed rates down to a new low as investors are now investing in US bonds. Once yields on treasury bonds lowered, this triggered a decline in mortgage rates.

According to the Wall Street Journal article by Nick Timiraos on May 24, 2010, rates averaged 4.84% last week ending May 20, 2010. Rates were around 5.27% in April.
 

Why is this important?

Remember my previous blogs? I explained that for every one point in increase or decline of a mortgage rate, there is a corresponding 10% increase or decline in the cost of the home. If you are a seller, you may not be forced to lower the price of your home as the monthly cost to the buyer will be less with a lower rate. (This assumes, of course, that you priced the house properly at the outset of the listing.) If you are a buyer, you can buy more house for the same monthly cost!
 

So, if you are in the real estate market either as a buyer or seller (or know someone who is), timing is of the essence! Lock in a low rate and let’s start looking at houses!

Posted by:  Mary Jane Benedetto

Aside from location, number of bedrooms, and schools, the most important criteria for a buyer is usually the price of the house. Many say right up front in the search process, “I want to spend between X and Y dollars.” Usually, the buyer prefers the more expensive home as it has more features than they are looking for!

But in this market, it’s important to understand that rising interest rates can have a huge effect on the monthly expense of mortgage and taxes. Right now, conventional wisdom says that interest rates will go up after March 31st causing higher monthly payments and the tax credit expiration will end April 30th causing buying activity to slow down. This will result in more inventory on the market. Good old-fashioned supply and demand in play here! Both buyers and sellers must be acutely aware of the cost of the house vs. the price of the house in this time period.

Let’s look at the consequences of an interest rate increase. The general rule of thumb is that for every 1 percentage point interest rate increase, the mortgage costs approximately 10% more. That means the buyer must lower the top price he is able to pay, put more money down, or resign himself to a higher monthly payment (sellers must be willing to lower the price of the home quickly to remain a viable and competitive player in the market). Now let’s look at the consequences of increased inventory. Unless a house is priced sharply and correctly, it will not sell in a glutted marketplace. Buyers have an opportunity to make an educated lower offer, maintain the projected monthly payments they can afford, and buy the house they want (hopefully, sellers will react, with the help of their agent, to meet this problem head on and lower the price of the home).

Posted by:Mary Jane Benedetto

New Jersey Monthly Magazine has just published its “Best Places to Live 2010” article, and Chatham Township is ranked #2 (Bedminster Township is ranked #1.) The data is compiled by Monmouth University’s Polling Institute. They consider eight categories which best represent the quality of life in New Jersey’s 566 municipalities: population growth, home values, property taxes, land development, employment, crime rate, school performance, and proximity to services. Household income was not included, and home values were measured by the rate of increase or decrease over three years rather than by current prices.

In March of 2008, New Jersey Monthly Magazine ranked Chatham Township #1 once again. James O’Neill, the Superintendent of Schools for the School District of the Chathams, was quoted as saying “Chatham is a very unique place to live … there is a disproportionate number of terrific kids and talented teachers …and dedicated parents who spend an inordinate amount of time supporting the district. Chatham schools excel in academics, in the arts, and in athletics.”

The State Department of Education released its “School Report Card” on February 9, 2010, and once again Chatham schools came out on top. Chatham High School - a nationally ranked “Blue Ribbon School” - had the top SAT (Scholastic Aptitude Test) scores in Morris County, and ranked 22nd in the state.

Even CNN’s Money Magazine was impressed with Chatham – in 2005 - naming the combined towns of Borough and Township the ninth best place to live in America! With the opening of New Jersey Transit’s Midtown Direct train service to Manhattan in the late 1990s, land values in Chatham shot up.

Chatham continues to be recognized as one of the top towns in New Jersey, and a great place to live!

Posted by:Cynthia Edgar

The Mendhams and Morris County have had tremendous foresight in setting aside preserved land over the last several decades. One of the most rewarding benefits is a system of hiking trails that might be the best in New Jersey. All are open to foot and horse traffic. Trails owned or maintained by Morris County almost always allow mountain bikes as well. None are open to motorized traffic.

Winter trails can be especially rewarding, with long views of vistas and wildlife with the leaves off the trees. After our ample recent snowfalls, snowshoes and cross-country skis add to the fun. There are many parking spots at trail access points, and most are quickly plowed out after storms.

Stay tuned for detailed information on individual trails in future blogs.

Posted by:Brian Hays

Since declines in home prices have resulted in increased appeals for property assessments, both Mendham Borough and Mendham Township have done a reassessment of all properties.

The result should be greater fairness for all residents. However, lower assessments do not mean lower taxes. A new tax rate will be established by the middle of the year, and the expectation is that the average tax bill will be no lower, and will probably be modestly higher. The total cost of running government and schools tends to increase each year, and that cost has to be apportioned.

The deadline has passed for appeals of the new assessments directly to the firm that did the work. However, appeals to the county, which normally must be filed by April 1st, can be filed up to May 1st.

Posted by:Brian Hays

In New Jersey, as part of the inspection process, homes are tested for radon. Radon? Most people are unaware of what it is as it is something that can’t be seen, tasted or smelled.

Radon is an odorless, colorless, radioactive gas that is the second leading cause of lung cancer in the USA, according to the Surgeon General. Based on that, you naturally will want to know what the level is in your new home, but even if you aren’t moving, it’s best to test if your home has never been tested.

Radon occurs naturally as a result of the breakdown of uranium and can come into the home through small cracks in the foundation, openings around pipes or pits. Levels of radon in geographical areas can vary, and even fluctuate, from home to home in any given neighborhood.

Radon is measured in picocuries per liter (pCi/L). Testing is easy. It can be done either with a do-it-yourself testing kit or by a professional. If, after testing, your home has a level of 4.0 pCi/L or above, “the U.S. Environmental Agency (EPA) and the N.J. Department of Environmental Protection (DEP) recommend that you take action to mitigate your home if your test results indicate radon levels of 4pCi/L of radon or more”.

First, you need to find a qualified radon mitigation expert. You can call the state for a list, or go online at http://www.njradon.org . Speak to several, and then choose the company that best suits your needs. The EPA website offers a “Consumers Guide to Radon Reduction: How to fix your home” that has a great checklist of questions. It is relatively easy to fix (think new roof or replacement windows.) The process is one of two types: preventing it from entering the home or removing it once it enters. Again, the EPA website has a clear explanation of what can be done. Remember to retest once the mitigation is complete.

Still have questions? If you are buying or selling a house, Turpin Realtors has a booklet that can describe environmental issues for home buyers and sellers prepared by the New Jersey Association of Realtors.  You can also call the Radon Hotline 1-800-SOS-RADON.

Posted by:Mary Jane Benedetto

This ornate Colonial Revival house, c.1908, was built by famous architect Frederick Cowperthwaite for Mr. & Mrs. Frederick Harvey Lum. Mr. Lum, who worked for the law office of Whitehead & Guild in Newark, and was admitted to the bar in 1870, was elected the first Mayor of Chatham in 1897. A life long resident of Chatham, he was a leader in Chatham Borough’s separation from Chatham Township. Edward Harris Lum, Frederick’s brother, born in 1857, graduated in 1880 from Harvard, and was in the same class with Theodore Roosevelt. Charles Lum, also a brother of Frederick’s, was born in 1860, and graduated Phi Beta Kappa from Columbia University in 1881. Ernest Lum, Frederick’s son, who also resided in this house, would become Mayor of Chatham in the 1930’s. Today there is a Lum Avenue, and a new Lum Turf Field located behind the Municipal Building.

Set on a hill with distant views, this stately property combines a number of elaborate exterior details from earlier classical forms, such as the full-height colonnaded portico with Ionic capitals, “Adam” Style fan-lighted doorway, keystone window lentils, and pediment dormers with Palladian windows. The interior floor plan consists of a “four square” layout with a “kitchen ell.” Grand in scale, yet very livable, this home features an updated kitchen, eight bedrooms, three full floors, five fireplaces, two side-porches, pocket-doors, detailed moldings and wainscoting, and craftsmanship from a bygone era.

Owned by a musical family, this home once housed three Steinway grand pianos. Over the years, house concerts have been presented by members of the Emerson String Quartet, the Metropolitan Opera’s Jane Bunnell and Paul Plishka, pianist Jeffrey Swann, and cellist Sergey Antonov – the 2007 winner of the Tschaikovsky Gold Medal.

Lyrica Chamber Music in Chatham, now in its 22nd season, was founded here by one of the property’s owners, Mariel Bossert. Lyrica is now directed by her daughter, violinist Laura Bossert, and pianist Adam Waite. On a typical concert weekend at 202 Fairmount Avenue, the house is filled with music played by classical musicians who rehearse diligently for Sunday’s concert.

This landmark house was also used to film the movie “Imaginary Heros” starring Sigourney Weaver and Jeff Daniels a few years ago. This evolved into a Chatham “happening” with many locals coming to watch the filming, and receiving Sigourney’s autograph!

The property includes a Carriage House, which was once used as the living quarters for the Lum’s coachman, and stables for their horses. It is now used as a 2-car garage.

For additional information on this premier property located on “Mansion Row on The Hill” please click here.

Posted by: Cynthia Edgar

The New Jersey Audubon Society’s Scherman-Hoffman Wildlife Sanctuary is a treasure located on Hardscrabble Road in Bernardsville, Somerset County, New Jersey.

The Scherman-Hoffman Wildlife Sanctuary features an Education Center, book store, and trails. The Sanctuary offers a variety of programs, field trips, and summer day and overnight camps for children.

During spring migration, birds flock through the Sanctuary. For bird watchers, between March 10th and 20th, look for the arrival of the Eastern Phoebe, Brown-headed Cowbird, Wood Duck, Belted Kingfisher, and Cooper’s Hawk.

For anyone who would like more information, contact NJAS at www.njaudubon.org.

Posted by: Gerry-Jo Cranmer

The Borough of Peapack-Gladstone is located in Somerset County, New Jersey. It is a small community where people enjoy both country living and proximity to New York for easy commuting by train. Schools are part of the Somerset Hills Regional District and include Bedwell Elementary School, Bernardsville Middle School, and Bernards High School.

Homes for sale range from townhouses on Main Street to 76-acre estates with many great homes in between! Victorians, ranches, and brick colonials are some of the eclectic mix of styles. The town’s amenities include great restaurants, a convenient train station, and a library.

To help buyers experience this wonderful town, Turpin Realtors is pleased to be a participant in the Peapack-Gladstone Open House day on Sunday, March 15th. You can find Turpin properties for sale on www.turpinrealtors.com by searching for Peapack-Gladstone. Several of these will be open to the public on that day and you can search for the open houses available and directions on that site. As an example, pictured here is a listing on Lincroft Drive that will be open on Sunday. The home is located in Tiger Hill, a beautiful area right off Peapack Road. It has 5 bedrooms, 3 baths, a family room, 2-story library, and a great room on 1.8 acres! Also, click on this special website for all the details: www.welcometopeapackgladstone.com

I look forward to meeting you in Peapack-Gladstone on Sunday, March 15th!

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