Buyers Market or Sellers Market- New Year 2010

Happy New Year Readers ! Yes, we’re 20 degrees below normal and freezing but that is not impacting the local real estate market.

Over Christmas & New YEars, I must have received 5-6 inquiries regarding homes in our area.

Interesting to note, the price range & type of homes being searched for are varied.

We seem to have moved out of the ground level of “Being safe” at the $300’s-$400’s ( Yes, there WERE actually some good deals to be had in this price bracket….townhomes of course.

Now, the “Enlightened” buyer is catching up to the fast tracking market & financing changes.

So are we transitioning to a Seller’s market ?

Aah, what a whimsical supposition.

As a Realtor I say with no condescension whatsoever,……..”Dream On” . To clarify, I am a homeowner myself, so believing & conveying “Realism” is vital.

Having said that, please be aware that for almost 3-4 months, our area has had very little in terms of  inventory….and anything attractive that has come on the market HAS been snapped up…..with 8-12 offers  on most & above asking for some.

So what ’s new for 2010 ?

Changing lending standards for sure.

Interest rates are on the rise …fast heading to 6%.

FHA AND conventional credit/loan ratios are requiring more notches to be tacked on to the borrowing ability of many a qualified buyer.

New standards & tests to weed out unqualified/uneducated mortgage officers are already underway.

In a neighborhood watch website, one can see the default ratios for many local lenders…It is quite amazing that loan officers continue to preapprove borrowers for hefty loans, that would hurt their very own “clients” in the short AND long run.

And, I do have personal, recent experiences to back that up.

So, what’s the plan…….Wait …..Buy……..Buy Now?…….

That makes for another post………soon to come.

BTW, for those curious…….a technical glitch seems to have wiped out all my posts in between Aug 2009 & now…………I hope to compensate with more interesting & updated reading to follow.

And the Winner IS………

Having worked with buyers consistently, esp. first time buyers, I have been asked at some point or another…….”So what do you think of the market ? When are we going to hit bottom?

My response ” We’ll know when we’ve actually started curving up”.

In th middle of putting in offers , contracts & attending closings, I’ve realized the bottom passed us by somewhere between April & the 1st half of July.

The most active market ……the $300000-$500000 price range in West Windsor ,Plainsboro, Montgomery & South Brunswick.

Multiple bids are becoming known for properties in move in condition & well packaged with price & location to match.

Low inventory** & the $8000 tax credit is bringing more buyers to the market.

** http://www.soldbyshalu.com/Nav.aspx/Page=http://www.mlsfinder.com/nj_trend/shaluthaman

Combine improved consumer confidence, good interest rates for qualified buyer & Back to School rolling around,……and one finds that properties are literally going under contract in days or weeks.

The ones that are sitting on the market longer have mostly 1 thing in common…………..List price higher than the comparision.

For these I believe, the learning curve for sellers is a protracted one……..one that a buyer should bypass with no remorse.

These sellers remain tied to how much they paid for their house or how much the fancy rain shower in the expensive designer bathroom cost.

As a buyer’s agent………..I say………NEXT ……….

While multiple bids are not uncommon now, a good measure of checks & balances is keeping everyone sensible……….Who, you say ?

Why, the appraiser of course.

The appraisal & the lender is King today & this may actually be the ‘bottleneck’ keeping the bubbly from flowing out uncontrallably.

We may not be back to the boom times but we are certainly confirming an upward curve both in the number of homes going under contract, those actually selling & the price points.

What’s the difference, you say? “I can afford to wait.I’m not in a rush”

The palpable difference …………….Being priced out within a few months.

The way to come out a real winner now ?

1. Get Preapproved

2. Be comitted to a time frame.

3. Find a good Local Buyers agent & commit to him/her.

4. Shortlist homes, preview them & be prepared to be decisive.

 

For current homes for sale, please visit www.SoldbyShalu.com & click on Search for homes to register for an automated search for listings delivered by email to your inbox.

Next up……………..When Is My $8000 Tax Credit Deadline ?

Lawrence Square Village Townhome For Sale

Lawrenceville Squaer Village Townhome For Sale

Estates at Princeton Junction- West Windsor Townhome For Sale

Estates at Princeton Junction Nj townhome For sale

Rarely available desirable End Unit Eastport Model on Premium lot AND on Cul-De-Sac.Facing North-East. This is the ONLY Eastport model in this entire townhome community on a Cul-de-Sac…….an enviable private & serene location.This spectacular end unit features a magnificent kitchen and family room with gas fireplace, spacious living & dining rooms, 2-Car garage, full basement & convenient 2nd floor laundry.Lots of natural light throughout.Exquisite master suite includes an expansive sitting area, large walk-in closet, and sumptuous private bath.9 ft ceilings & hardwood flooring on 1st floor, Lifetime warranteed Anderson Windows, Corian Counters in kitchen & a layout that is Open & spacious. In-ceiling speakers, marble fireplace, crown molding, home security system, backyard paver… patio. ALL bedrooms have vaulted ceilings. Toll Bros Builders Warranty transfers to the purchaser , offering a well-packaged value to a discerning buyer. Assoc fee incl snow removal, lawn maint. 5 min to train.WWP schools. A must-see!

Preview more details on :- www.SoldByShalu.com

OR  http://www.trulia.com/property/1074048874-14-Wedgewood-Ct-Princeton-NJ-08540

Tax Break for Homebuyers- What a “Stimulus”!!

Excerpted from The New York Times :-

By DAVID M. HERSZENHORN

 

Published: February 4, 2009

The Senate on Wednesday voted to expand the economic stimulus package with a tax credit for homebuyers of up to $15,000, a provision championed by Republicans as addressing a root cause of the recession.

Senator Johnny Isakson, Republican of Georgia, a former real estate broker who was the prime sponsor of the homebuyer credit, said it was modeled after a similar, $2,000 homebuyer credit that helped lead the country out of recession in 1975.“We do have a history in this country with housing and it goes back to the crash of 1974, which actually in terms of inventory and price declines was comparable to what’s happening now,” Mr. Isakson said at a news conference. “Within one year of the inception of that tax credit, two-thirds of the available inventory that was on the market was gone. The market moved back to a balanced inventory, values stabilized and things became very healthy. The only reason I know all of that is I was selling houses in 1974, that’s what I was doing to feed my family and make a living.”

The measure would give buyers a tax credit of 10 percent of the price of a primary residence purchased within the year, up to $15,000, and is designed to stabilize plummeting home prices that caused a wave of foreclosures and led to the near collapse of the financial system as Wall Street firms wrote down billions in losses on mortgage-backed assets.

 

Yes, comments are invited…….Let’s hear what you think.

Mortgage Markets Guide- Loan limits for NJ

Here is a link for more details :-

http://www.mortgagemarketguide.com/download/2009loanlimits.pdf

A snippet from the report for New Jersey, based on County:-

Metropolitan Statistical Areas, Micropolitan Statistical Areas and Rural Counties where Loan Limits are Set Based on High-Cost Area Provisions of HERA

(Areas where one-unit loan limit exceeds $417,000 in continental U.S. or is above $625,500 for locations in Alaska, Hawaii, Guam, and U.S. Virgin Islands)

Fannie Mae and Freddie Mac conforming loan limits for the high cost areas below may not exceed the corresponding levels listed. These loan limits apply to loans purchased between January 1, 2009 and December 31, 2009. For a one-unit property, the maximum loan limit is calculated as 1.15 times the median house price for the highest priced county in the property’s metropolitan or micropolitan area or the median house price for the property’s county if it is in a rural county. Regardless of the area median home price, the loan limit cannot, in general, exceed $625,500 (1.50 times the 2009 conforming loan limit). The exceptions are properties in Alaska, Hawaii, Guam, and the Virgin Islands, where that range is 50 percent higher ($625,500 to $938,250). The 2009 conforming loan limit of $417,000 is in place everywhere else. Loan limits for 2-4 unit properties are proportional to the 1-unit limits.

NJ New York-Northern New Jersey-Long Island, NY-NJ-PA (Metropolitan Area)

Component Counties (NJ):

 Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union

$625,500 *

*Limit  1- Unit property

Source ;-http://www.ofheo.gov/media/cll/HighCostLoanLimits2009.pdf

 

Search for homes on the internet

Searching for homes on the internet can be daunting ……..even misleading.

Let me explain.

You go to google. Type in west Windsor Plainsboro homes for sale or West Windsor Plainsboro real estate.

Something like that.

You’re presented with many site links….some are highlighted  , others are not.

The ones that are highlighted are sponsored links ie. the owner of the site is paying for placement.

These are not the most revlvant results for your search…….the ones which come up as a list provide more relevant information to your query…..mostly.

Sifting through these can also be a maze…..many don’t have updaed information, listings that are expired or unavailable.

While this is a challenging task; as listings that may be under contract can remain’active’; I have tried to address this by having a ‘Search for Homes’ option on my website www.SoldByShalu.com tht allows REGISTERED USERS to set up a customized real estate search via a live MLS search.

Thus buyers & sellers can search the multiple listing system for homes in Mercer county NJ, Middlesex county NJ, Monmouth county or Somerset county.

Or narrow it down further to townships in the Central NJ areas of West Windsor, Plainsboro, South Brunswick, Princeton etc.

There is also a ‘Featured Homes’ search option that allows viewing details of listed properties for sale & rent with many  photos.

This does require signing a guest book & entering your name, phone # email etc.; but this input is not used for any other purpose except to sign you into the MLS system, in order to receive listings that are most updated.

For questions regarding a specific property or questions regarding communities in the Central NJ area, please contact this Local Plainsboro, Windsor, Princeton, Montgomery, South Brunswick area Realtor.

Recent Market Activity- West Windsor Real Estate NJ

Here is a breakdown of real estate activity regarding townhomes :

3 bedroom townhomes in West Windsor $400000-$500000

Available:- Windsor Ponds (2)  , Canal Pointe, Windsor Haven ( 2) , Princeton Greens( 2) , Estates at Princeton Junction (1)

Avg days on market :- less than 30 days for Windsor Ponds & Princeton Greens . 70+ days for the others.

Recently Sold ( within last 3 months) :-

 Windsor Ponds – 3 properties settled with average days on market under 30 days.

Princeton Greens- 1 property settled at 41 days

Estates at Princeton Junction-

17 Wedgewood ( very close to train tracks) – settled at $490000 after 130 days. ListPrice- $499,900

While specifics are important …..and relevant…..for buyers currently in the market…..the purpose is to bring to attention the following:-

That the market is active because of current affordability.

This price range is providing an opportunity to get a loan approval from a lender without going into a nonconforming loan scenario ( provided a buyer can make a minimum required down payment)

That contrary to the media reports of this “Nation hurtling into the worst economic recession of historical proportions” ( To quote, unquote) …….that the world is NOT coming to an end.

Most are going about their daily business….albiet being conservative ….and rightly so…………….selectively purchasing a home vs continuing to rent one…….taking advantage of low interest rates & any buyer incentives that are available for the time being……..replacing fear with the measured ability to recognize a financial & Lifestyle amending opportunity when they see one.

I will continue to post for other areas / communities.

First Time Buyers for West Windsor Plainsboro – Local Real Estate Update

The buying process- from previewing homes to contract- usually takes a month or 2 ( that’s about an average of 4–5 meetings to preview homes ), provided there are some good values to preview.
The contract to closing can be longer – 30-90 days…maybe even longer in some cases.
 
If you are buying a home to live in for at least 2 years , have access to credit, have a down payment & and are not facing any employment related issues; the current market presents an opportunity that savvy buyers are taking advantage of.
 
Interest rates may come down a bit further in this quarter – as the fed responds to containing the markets turmoil- a necessary cleansing process BTW – presenting an opportunity that is unprecedented.
 
Once the growing regulations for the mortgage industry & stricter lending requirements ( already there for many banks) are in place, even qualified buyers may have to wait a bit……perhaps save up a bit more to increase their down payment…….we are hearing that 20% may become the minimum standard.
 
We are seeing quite a few contracts falling through because of this.
 
Secondly-
None of us have a crystal to predict how long this long this window will last for buyers, but the reality check is in the stabilization for Plainsboro – that has already occurred – West Windsor is fast catching up & in areas close to public transportation & good schools ( that remained a constant even in the shifting market) the sales have been strong .
Homes that are priced & show well- and are in move in condition have been selling quickly .
In Plainsboro, where the inventory has typically been low – this has meant homes going under contract in well under a month- sometimes 1-2 weeks & multiple bidding – I can vouch for both scenarios first hand.
 
As only local real estate agents are- I am keenly aware of the shifts that have been occurring in this area for the past 2 years as I’ve worked mostly with buyers. especially 1st time buyers.
To have been successful in getting my clients from search – to-contract-to -closing, I have had to monitor all variables that impact the elements of this process & gauge where the trends are moving to.
 
A thorough planning of your financial situation; including getting preapproved; & timing your purchase decision to make the most of the current tide, would be most beneficial.
 
As we move into the 1st quarter of 2009, & the early Spring market, we are expecting this stabilization to be more or less in place for most of the areas you may be interested in…….so the risk is being priced out, as the market normalizes.
 
I hope that this familiarization of the Local Real Estate state of affairs would help you, The First Time Buyer,  in analyzing your situation & decision making process.

Please contact me directly for any questions.

As always, comments are welcome.

Is it a good time to by a first home in Central NJ?

A surprising safe haven for savings

An emerging story beneath the headlines

By Dave Jenks, Vice President of Research and Development and Jay Papasan, Vice President of Publishing and Executive Editor, Keller Williams Realty

Amidst fears of a financial market freefall, the real estate market is emerging as a bright spot. Indicators are pointing to an end to the bust; in fact, real estate may be poised for a bounce.

While consumers are scrambling to diversify their saving and investment accounts and retreating from paper assets (e.g. stocks) into hard assets (e.g. gold), the savviest among them are looking deeper than morning’s headlines and realizing that real estate is a solid investment option in the current market.

Home prices have corrected and fallen back into alignment with historic trends. The inventory of homes for sale is finally shrinking from the June 2008 peak. Also, based on year-over-year comparisons, housing affordability is now higher than it’s been for the past five years. All signs point to the real estate market turning the corner. So for investors seeking a safe haven in this financial storm, housing emerges as a surprisingly good choice—an undervalued hard asset with upside potential.

As the following chart illustrates, the unsustainably high run-up in home prices between 2001 and 2005 is coming back in to alignment with the historic 4 percent trajectory in home price appreciation. Indeed the market has corrected. While it is quite possible that the market will continue for a time to “over correct,” the important point to realize is that no one can ever predict or time the floor—until after the fact when opportunity has been lost.

Is Housing Headed for a Turnaround? Home prices falling back into alignment with historical trends

Source: Keller Williams Realty, Inc.

The long-term affordability trend of 4 percent appreciation has been recovered after a five-year period of unsustainable growth (2001 to 2005) followed by a three-year market correction (2006 to 2008).

Now is the time to buy and the reasons are many:

• Real estate remains one of the most stable long-term investments with relatively modest fluctuations in annual gains.
• The extensive housing inventory in most markets is providing great choices for investors.
• Mortgage money is available to financially stable buyers and interest rates remain attractively low.
• Real estate investments tend to bring a greater annual return on investment (ROI) than stocks, gold or commodities, because they are leveraged (buyers put 20 percent down, and receive appreciation on the entire value of the property).
• Just as the late 1980’s and early 1990’s provided a massive opportunity for real estate investors to make great buys and build wealth, the current market will do the same.