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

Here we are on September 7, 2010, late at night, the TV is off, and nothing is going on in outside or inside. Just the chirping Crickets, and the dogs waiting to go outside for the last grass killing adventure of the evening.

What I want to know, is where is this economy heading?  All this talk of double dips is very possible, but this weekend while watching news from Washington, two prominent economists (that and the weatherman can be wrong and still be considered Great) mentioned one thing that I was noticing.  We have just about bottomed out in the economy. How much lower can property values, jobs, hope or dreams get before something breaks. 

Realtors are touting the dream and affordable of home ownership, but Maslov's theory that first must come security before dreaming of stability is true.  People are afraid of the job market, and others are just lazy and happy to take the Government dole for as long as they can without looking (since they can't make what they made before the economy crashed) for work. And yet others have remodeled their lives and now work on their own, in the public sector, or doing volunteer work that, if they did not get the government assistance, they would never have done.

Roads are being closed, opened and closed again as the only real jobs (beside government) is for the highway department.  And yet, you can't complain since it's a job and helps pay the bills. Banks will always make money.. gee whiz, they've got it to a science, and only Wall St and the Government when they tried to regulate did the "old boy" network figure out a way to kill the fatted calf.. now what.

Sounds like a long rabble, eh?  Not really.  Just wondering what the next phase of this economy will bring before the "Recovery" starts...

peace and prayers to all.  There is a light at the end of the tunnel.

Hello fellow reader

    Thank you for reading and if you have time, please comment.   I have been reviewing market conditions, current listings and recent sales and under contract properties... and what I have found is....

    1.  Listings are taking longer to sell

        2.  The amount of pre-foreclosed properties, or rather, homeowners that have fallen behind on their payments has increased

        3.  Approximately 10% of the homes on the market, and on the mls are NOT really for sale because the homeowners are not motivated enough to sell and the Realtors ® have not taken the homes off the market.

    4.  Some sellers are no longer selling but would rather either wait or rent until they get what they feel they need/want/the house is worth.

        5.  Many lenders are still not in a position to lend and make their loan program offerings match with the style of homes for sale.  (Foreclosed homes and short sales cannot have as many conditions as an end user owner occupied home).  FHA buyers may be handy, but if the house needs work, many times the utilities cannot be fully functional for the appraiser. Gas and heat cannot work if their is no plumbing, or damaged plumbing.  The same goes for Conventional financing terms and conditions.

    6.  There are many a good Realtor® and mortgage lender that are about to lose their homes because of the economy.

    7.  We, the American People are trying to get out of Debt today, by borrowing Tomorrow..

        8.  This recession/depression is different from the last two that I have been through mostly because of a lack of hope and the ease of a government handout.

        9.  The buyers that are buying, still have HOPE, Still have DREAMS, still have the desire to better their own lives.

        10.  AND today's buyers are more knowledgeable, and better informed to the loan process and buying process than buyers from the 90's.

      11.  People are still selling to move up, move down, buy a second home, and buy their first homes.  How?  LOW interest rates and price roll backs to home prices from almost 10 years ago.  The gains will take LOTS of time to catch up.                

    But what dear reader, does this mean to you?  It means that Buyers are still buying, sellers are still selling and as the economy struggles to gain a footing and stop the free fall market place of 2007 and 2008, and early 2009, Life Goes On.  

Any opinions, please share them. Thank you for reading.  Mannie      

(Edison, NJ) Reacting to the NATIONAL ASSOCIATION OF REALTORS^®' (NAR) 2009 Third Quarter Metro Home Prices/State Resales report, New Jersey Association of REALTORS^® (NJAR^®) Executive Vice President Jarrod C. Grasso, RCE, today issued the following statement:

"The real estate climate in New Jersey is heading toward stabilization. Existing home sales in the state rose 8.5 percent in the third quarter of 2009, compared to the third quarter of 2008. This pace outperformed the national rate of resales, which is up only 5.9 percent when comparing the third quarter of 2009 to that of 2008. This is also the second consecutive quarter-over-quarter increase in New Jersey this year.

"The jump in third quarter activity in New Jersey as a whole can largely be attributed to the summer and early-fall rush of first-time home buyers aiming to close in time to obtain the $8,000 tax credit. Thankfully, President Obama's approval of an extension of the tax credit will allow those purchasers extra time to close on their first home since the expiration is now extended until April 30, 2010. The legislation also expanded the tax credit to offer $6,500 to repeat buyers. These incentives, paired with the passage of increased loan limits from the Federal Housing Administration (FHA), Freddie Mac, and Fannie Mae available through December 31, 2010, make for a prime opportunity for various buyers in this market.

"New Jersey's eight metropolitan statistical areas (MSA) are becoming more affordable and attainable for those buyers looking to make the Garden State their home. Median prices of existing single family homes have declined yearly when comparing the third quarter 2009 to 2008. However, each of the state's MSAs has shown a quarter-over-quarter increase in sales price. This demonstrates that the federal stimulus incentives are showing promise by bringing more first-time and repeat buyers into the arena, thus fueling competition in the marketplace."

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More reasons to call your local Realtor, Manuel Couto, at the Rosa Agency in Kearny, NJ.  Smart Choices Made Easy

Well, WE Are Half Way There.

THE TAX CREDIT is HERE!!!   But jobs are still scarce, and you're still afraid of tomorrow.  What do you do?  What happens to "my job" and how can I pay a mortgage if I buy a house?  Will the bank throw me out?

Well, darn it. Doing nothing will not create any new jobs, or bring back old jobs.  But, if you take advantage of the lowest prices in the last 10 years to buy an AFFORDABLE home, a STARTER home, and in many cases your Mortgage payment after tax savings is LESS than what you would pay in rent.. and you have to live somewhere.

You can live in your own house, pay your own mortgage and work towards a forced savings plan into your own future.. AND take advantage of the Tax Credit that is AGAIN, there for YOU.  A chance to Make Smart Choices Made Easy.  Call Manuel Couto,CRB of the Rosa Agency at 201-997-7860 x16 and ask me how.

I know, it's been a while.  A long while. About 3 months, right?  The market has been very busy.  Not just the foreclosure sales, but regular sales. Buyers looking to take advantage of the $8000 tax credit, or to take advantage of the low prices and fantastic interest rates.

I wonder how long this will last?  It's almost back to business as normal (as normal as 10 years ago) but the difference is, this economic growth is built on the future of my grandkids.  Scary, right? You see, with the Government taking control of so many different companies, and offering the banks 0% interest loans while the banks offer YOU and I 5% loans (a 5% profit from the beginning), the money has to come from somewhere.  I heard someone say, the Government.... yes.. Them.. or actually US.  The Treasury prints up the money, and doles it out, but it's still YOUR money.

Who knows, maybe it really is the best way to keep us out of the recession.

ok, in a Nutshell... The US Government, to stimulate the economy, and to make home buying possible for Millions of American first time buyers has offered to give an $8,000 tax credit. BUT... it will be expiring soon. 

Log into http://www.hud.gov/news/release.cfm?content=pr09-072.cfm for the complete HUD press release,

or. this is straight from YouTube.. and it best explains how the credit works.

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Well, if you ask me for hard data, I can get it to you from both the GSMLS and the NJMLS...

REAL ESTATE IS UP IN ACTIVITY...All the entry level homes are  being snapped up by buyers that are more afraid of missing the chance to buy a home they can afford- VS -Waiting longer for prices to drop.

Yep, Activity is up. Case in point.  Last week I checked Clifton Sales (not the actives) and there were 42 sales of single family homes in the last 3 months, but in the last 2 months 92 homes have been placed under contract.

If I can be of any help, please do not hesitate to call me at the office at 201-997-7860 x16, or my cell at 973-417-8060.

Beware the Ides of March.... they said to Ceasar....

and here we are, right past the Ides.  Well, the good news is that the Real Estate Market has picked up, again.  The Spring market historically has been one of the best times to buy and sell a house.  I see record number of sales, plenty of qualified buyers, and motivated sellers.  Put that together with the low interest rates and the stimulus package and you have the beginnings of a stabilization of the real estate market.

Bad news, the foreclosures that have been on hold are now coming into the market.  Many of the foreclosures that I see are fraud or absentee owners.  I feel for the tenants, but so many times the tenants refuse to talk to me until it's too late.  They trust the owner who robbed them, or they decide to live for free and not contact me until we have to go to court.  By then, it's too late.  I won't have the authority to offer them relocation money, or do much else that try to broker a deal where they can move out with some pride, and the banks/servicers are happy that they moved out quickly.   But I ramble, again.

NOW, is a good time to buy a home, and if things continue, there will be a good inventory of foreclosed homes, as well as motivated sellers and buyers.  Why are so many people waiting?  Heck, I don't know.  What i do know is that tomorrow the rates may drop to a low of 4% because of Federal Government Action!   But don't expect that to last too long.  Call your lender and get prequalified NOW, and then call me, your local area realtor.

OK,

so, as you read this hopefully you looked through the web site, looked for the homes that you may want, looked for the amenities you want, and the areas you want...

BUT.. did you call your mortgage Broker to see if you Qualify?  I have been busy the last few months submitting offers and contracts.  While many people place offers, few realize that the property condition dictates if they can get the loan.  It's not that easy when they apply on line, or with a broker that someone recommended that does not ask the questions:

1.  Is this a foreclosure?

2.  is it being sold "AS IS"

3.  Will the utilities, gas and electric be working?

4.  Will YOU qualify for the home if it does not.

5. What kind of condition should the home be in for me to qualify.

YOU have to ask

1.  Can you offer a rehab loan?

2.  What are the conditions and parameters to get that loan.  Can it be a two family or one family home only, What about a three family.

3.  Costs?  How much up front, how much per month, how much is/will be available for renovations.

4.  Should I look for another home in better condition?

Yes, the foreclosure market has some great homes at great prices but they are not for everyone.  End users have some wonderful homes that they have loved and taken care of that you can negotiate and buy.  NOW is the time to take advantage of the market. NOW may still be the greatest and best time to buy a home.

Talk to your financial adviser, talk to your accountant, talk to your husband/wife or friends.. but remember that the time to make money is not when everyone is buying, but in buying right when everyone else is selling.