REAL ESTATE IN KEARNY/NEWARK....FROM A REALTORS VIEW

WOW... The weekend is finally here, with an extra day off.  What happens.  TWO phone calls for showings of my listings and TWO contracts.  It's true. While some agents are slow, my listing are being shown, and SOLD.  HOW?  Price reductions, good exposure and good follow through. 

Even the papers are now starting to say it's time to buy a house.  Do you know that approximately 3% of the market constantly changes every year.  Be it from regular sales, corporate relocation, divorce, death, or foreclosure.  The market is ALWAYS is flux moving up and down.  Timing it is next to impossible, but BEING in the market is so important that many investors are now starting to buy and hold for the next expansion.  Interest rates are low, and it'a a buyers market.

Call me for a private appointment.  201-997-7860 x16

ALAS, a new day, a new complaint...

Actually not a complaint but an observation.  I was at a meeting with realtors from around the great state of NJ.  They all say one thing.  Forclosures are up, values are stable or dropping and buyers ... buyers are not buying.   When asked why, all they could agree upon was that it seems that everyone is waiting for the bottom of the market.  They come, they look, they kick the tires, but few are reaching into their pockets to buy the home.  People, this is not going to help the economy.  With less buyers, there are fewer sales and transactions with mortgage companies, title companies, Hardware stores, furniture stores, moving companies, painters, contractors, gas companies, phone companies, lumber yards... these are all real jobs that people have to work in.  (It almost sounds as if it's Un American NOT to buy a house).  Realistically speaking, Values are still good in the NJ/NY metropolitan areas, and interest rates are not high compared to the last 30 year average.  If the house or apartment suites your needs, BUY IT.  STOP paying rent and invest in your own home.

OH, and while you are searching the internet, look up NJAR's sponsored web site, WWW.NJHomeTax.com.  The State and Municipalities in NJ are trying to figure out a way to raise more money... on the backs of the taxpayers.  Log in and figure out what your penalty could be if this law passes.

Can you imagine that?  The government just realized that Real Estate was driving the economy the last 10 years.  The newest update is that to stave off a recession and slow the damage caused by the lending crisis, they are considering lowering the interest rates to spur more borrowing, and take the risk that inflation won't rear it's ugly head.

What does that mean to you, the consumer?  Who knows.  The rate that normally gets cut is the overnight rate, not the long term rate (that's more market driven).  Let us hope that it benefits us all.

mc

BUT, not in NJ.  Most foreclosures that you read about are happening in:

1. The subprime market

2.  Adjustable rate mortgages

3.  In the States of California, Florida, Neveda and Arizona

mmmmm, if you exclude those states, the national foreclosure rate actually declined in the quarter (article by P. Rucker, Reuters  9/6/2007).  Delinquencies have gone up, though.  What does that mean in the near or far future?... Well, as a president of a large bank once told me  "Reach into your pocket and pull out a quarter. Take a long look at it, flip it in the air and there is your answer." The economy is still humming along, home depreciation seems to be taking place in areas where there was most investments, and a lot... I mean A LOT... of people have never lived through an economic cycle like we are having now.  It's business as normal.  How can you expect home prices to keep on increasing at 12-20%a year and still afford a home when income has only increased4-5%? 

People have to remember that your home is NOT a piggy bank to take money out of and never put back in.  I think that they forgot to save their money instead of asking loans against it.  PROTECT you home at all costs.  That's where you, your family, your memories all live. Where the good, the bad, and the happy times happen.  It's not supposed to be a piggy bank, or an ATM machine.

Well, till next time. 

Peace