For Immediate Release:
July 16, 2008
SEVEN THINGS YOU NEED TO KNOW ABOUT REAL ESTATE IN NEW JERSEY
New Jersey Association of REALTORS® Sees Opportunity in State's Real Estate Market
(Edison, NJ) New Jersey residents might be surprised to learn that there are many positive aspects about the state's real estate market. Currently, New Jersey real estate market offers many opportunities, evidenced by areas of positive growth including rising median sales prices in some areas of the state, increasing affordability rates and a high average of accumulated home equity, according to statistics presented by the New Jersey Association of REALTORS® (NJAR®).
"There is no doubt that some New Jersey residents are still undecided as to whether now is the right to buy a home," said NJAR® Executive Vice President Jarrod C. Grasso. "By highlighting statewide market information, we're arming the public with the knowledge they need in order to educate themselves and evaluate their housing choices."
Below are seven key facts about New Jersey real estate buyers and sellers should consider when thinking about a real estate transaction.
New Jersey homes have generally maintained their values. National news about tumbling residential real estate prices does not present an accurate picture of New Jersey's local markets. While the national seven year home appreciation rate is 37.8 percent, New Jersey's is more than double that amount at 80.4 percent. Some areas of the state, Bergen, Essex, Mercer, Cape May and Salem counties, saw median price increases in the first quarter of 2008.
The market favors first-time home buyers, who make up 40 percent of the New Jersey market. Buyers currently have many more homes to choose from and are benefitting from mortgage interest rates that are near historic lows. Without having to sell previously-owned property, first-time buyers can also take advantage of the increasing rate of affordability. According to the First Quarter 2008 New Jersey Home Sales Report, New Jersey's housing affordability composite index rose over 100, signifying that a family earning the state median income has the potential to qualify for a mortgage loan on a median-priced home, assuming a 20 percent down payment.
It's also a good time to trade up. Homeowners in need of a larger home might be hesitant about listing their current home in a buyer's market. However, while sellers may have to accept a more realistic price for their current home, the seller of the home they wish to purchase is in the same situation. Realistic pricing is key and REALTORS® familiar with a local market can be invaluable in pricing and marketing your home.
Owning a home builds long-term wealth. Over the last decade, the median prices of homes in almost every metropolitan statistical area that covers the state have more than doubled; illustrating that homeownership is a sound financial investment that historically outperforms the stock market in building long-term wealth. New Jersey home buyers who purchased their homes seven years ago have accumulated an average of $156,300 in home equity.
A home is much more than a nest egg. Despite the tax benefits and financial security which homeownership can provide, a recent survey of New Jersey homeowners revealed that the desire to establish a household and have a place to call their own was the number one reason for buying a home.
New Jersey has a lot going for it. There are many positive economic and market forces in the Garden State that support the long-term health of residential real estate. Reflecting a strong employment market, New Jersey's median income of $64,470 is the second highest in the country. Also, excellent school systems, proximity to New York and Philadelphia, a thriving tourism industry and an extensive transportation infrastructure all enhance the vitality of this area.
There are 53,000 REALTORS® in New Jersey that can provide you with localized information. Nine out of ten home buyers in New Jersey choose to work with a REALTOR® and 86 percent said they would probably work with the REALTOR® again. REALTORS® have a thorough understanding of the dynamics of their local markets and are ready to guide potential homeowners through the process.
These seven things consumers need to know about real estate in New Jersey will be featured in a consumer brochure to be distributed to REALTORS® throughout the state in the coming weeks in order to inform their clients with facts about the state's real estate market. NJAR® is encouraging New Jersey residents to Get the REAL StorySM on real estate in New Jersey with a public education campaign that features an informational website, www.REALstoryNJ.com, designed to assist potential buyers and sellers in learning about New Jersey's real estate market.
"This is one more crucial step in helping to educate New Jerseyans about the opportunities that the state's real estate market holds. By going to the website, by researching different options in their area and by consulting with REALTORS®, buyers are able to better understand their local markets and are able to make educated decisions," said NJAR® President Drew S. Fishman. For more information on the campaign, or simply to Get the REAL StorySM on real estate in New Jersey, visit www.REALstoryNJ.com.
Info from New Jersey Association of Realtors
Wednesday, July 16, 2008
Thursday, July 10, 2008
What's working in New Jersey's favor?
The housing market is a favorite topic for the media these days. In general, the news coverage of the real estate market by New Jersey's media outlets has tended to focus on national trends. However, these news stories do not present an accurate picture of what is actually occurring here in the Garden State. There are many positive market forces contributing to the state's healthy residential and commercial real estate markets, including:
The exceptional employment opportunities afforded to New Jersey citizens draw people to the state.
New Jersey's 2006 median household income was $64,470 while the United States median was $48,451. According to the U.S. Census Bureau, New Jersey had the 2nd highest median income in the nation in 2006 (behind Maryland at $65,144).
Source: US Census Bureau
People want to raise their families in New Jersey because of the excellent school systems.
New Jersey ranked 7th in the nation in graduation rates (behind Nebraska, Wisconsin, Vermont, Iowa, North Dakota and Minnesota).
Source: Digest of Education Statistics, US Department of Education
New Jersey also has seen 8 out of 10 high school graduates enter college after high school according to the New Jersey Department of Education statistics from 2005-2006.
Source: New Jersey Department of Education
New Jersey's thriving tourism industry fueled by the Jersey Shore makes it an attractive place to live.
In 2007, tourism expenditures in New Jersey totaled $38 billion. In terms of economic value to the state, this number is $27 billion.
Source: NJ Tourism: An Economic Juggernaut, April 2008
So, call me and let's find you a new home.
From the NJAR website...Get The Real Story on Real Estate in NJ
The exceptional employment opportunities afforded to New Jersey citizens draw people to the state.
New Jersey's 2006 median household income was $64,470 while the United States median was $48,451. According to the U.S. Census Bureau, New Jersey had the 2nd highest median income in the nation in 2006 (behind Maryland at $65,144).
Source: US Census Bureau
People want to raise their families in New Jersey because of the excellent school systems.
New Jersey ranked 7th in the nation in graduation rates (behind Nebraska, Wisconsin, Vermont, Iowa, North Dakota and Minnesota).
Source: Digest of Education Statistics, US Department of Education
New Jersey also has seen 8 out of 10 high school graduates enter college after high school according to the New Jersey Department of Education statistics from 2005-2006.
Source: New Jersey Department of Education
New Jersey's thriving tourism industry fueled by the Jersey Shore makes it an attractive place to live.
In 2007, tourism expenditures in New Jersey totaled $38 billion. In terms of economic value to the state, this number is $27 billion.
Source: NJ Tourism: An Economic Juggernaut, April 2008
So, call me and let's find you a new home.
From the NJAR website...Get The Real Story on Real Estate in NJ
Monday, July 7, 2008
Agency
REALTORS® add value to the real estate transaction by representing the interests of their clients. Consumers can choose from a variety of business relationships with real estate professionals, including buyer representation, seller representation or both with full disclosure and informed consent.
The National Association of REALTORS® Code of Ethics requires REALTORS® to disclose whether they represent the buyer, the seller, or both parties. Laws governing the method and timing of the disclosure are different in each state.
NAR supports state laws to clarify the law of agency as applied to real estate brokerage relationships. NAR recommends that state laws clearly define the duties for each type of brokerage relationship.
Under designated agency, a broker may appoint one agent affiliated with that broker to represent the seller and another agent with that same broker to represent the buyer in the same transaction without creating a dual agency relationship.
In dual agency, one agent represents both the buyer and the seller in the same transaction. Dual agency is not allowed in some states, but where permitted, it must be disclosed to both buyer and seller, who must both consent to a dual agency relationship.
NAR does not support the pure nonagency facilitator concept in which a licensee assists the parties to a real estate transaction in reaching an agreement without being an advocate for the interest of either party. In that type of relationship, the licensee owes the consumer none of the traditional fiduciary duties.
REALTORS® work to protect consumers in the real estate transaction, and full and timely agency disclosure is essential for successful consumer relationships.
NAR encourages real estate firms to have a written company policy that addresses brokerage relationships with consumers. That policy should provide brokers and sales associates with guidelines about their duties and obligations to consumers.
NAR also stresses the importance of education and training for real estate professionals on the topic of brokerage relationships with consumers. The association encourages state regulatory bodies to require pre-licensing courses and core continuing education programs to assure that licensees fully understand their state’s agency laws and requirements.
NAR recommends that states adopt laws that mandate agency relationship disclosure and rules to provide meaningful and timely written disclosure.
State laws should specify how brokerage relationships end; describe an agent’s duties upon terminating a client relationship; eliminate or modify the consumer’s vicarious liability for the acts of the agent; describe the disclosure duties of agents with respect to property condition; and, once a statutory framework is in place, replace the state’s common law (case law) if inconsistent.
Information provided by NAR
The National Association of REALTORS® Code of Ethics requires REALTORS® to disclose whether they represent the buyer, the seller, or both parties. Laws governing the method and timing of the disclosure are different in each state.
NAR supports state laws to clarify the law of agency as applied to real estate brokerage relationships. NAR recommends that state laws clearly define the duties for each type of brokerage relationship.
Under designated agency, a broker may appoint one agent affiliated with that broker to represent the seller and another agent with that same broker to represent the buyer in the same transaction without creating a dual agency relationship.
In dual agency, one agent represents both the buyer and the seller in the same transaction. Dual agency is not allowed in some states, but where permitted, it must be disclosed to both buyer and seller, who must both consent to a dual agency relationship.
NAR does not support the pure nonagency facilitator concept in which a licensee assists the parties to a real estate transaction in reaching an agreement without being an advocate for the interest of either party. In that type of relationship, the licensee owes the consumer none of the traditional fiduciary duties.
REALTORS® work to protect consumers in the real estate transaction, and full and timely agency disclosure is essential for successful consumer relationships.
NAR encourages real estate firms to have a written company policy that addresses brokerage relationships with consumers. That policy should provide brokers and sales associates with guidelines about their duties and obligations to consumers.
NAR also stresses the importance of education and training for real estate professionals on the topic of brokerage relationships with consumers. The association encourages state regulatory bodies to require pre-licensing courses and core continuing education programs to assure that licensees fully understand their state’s agency laws and requirements.
NAR recommends that states adopt laws that mandate agency relationship disclosure and rules to provide meaningful and timely written disclosure.
State laws should specify how brokerage relationships end; describe an agent’s duties upon terminating a client relationship; eliminate or modify the consumer’s vicarious liability for the acts of the agent; describe the disclosure duties of agents with respect to property condition; and, once a statutory framework is in place, replace the state’s common law (case law) if inconsistent.
Information provided by NAR
Wednesday, July 2, 2008
Monthly Statistics June 2008
Following are the statistics for the month of June, 2008 in both Cherry
Hill and Marlton. If you have any questions regarding the information,
feel free to give me a call on my cell phone at; 609-405-4111.
Cherry Hill June 2008 Statistics
Listed 129 Under Contract 42 Settled 82
Marlton June 2008 Statistics
Listed 135 Under Contract 37 Settled 68
As you can see, the number of homes settled are less than the number of homes listed.
That is causing an abundance of listings in the areas. While this may not be a good thing
for a Seller, it certainly is good for buyers. So, with the combination of lower prices,
lower interest rates and an ample number of available homes, this is a great time
for a buyer.
Hill and Marlton. If you have any questions regarding the information,
feel free to give me a call on my cell phone at; 609-405-4111.
Cherry Hill June 2008 Statistics
Listed 129 Under Contract 42 Settled 82
Marlton June 2008 Statistics
Listed 135 Under Contract 37 Settled 68
As you can see, the number of homes settled are less than the number of homes listed.
That is causing an abundance of listings in the areas. While this may not be a good thing
for a Seller, it certainly is good for buyers. So, with the combination of lower prices,
lower interest rates and an ample number of available homes, this is a great time
for a buyer.
Saturday, June 28, 2008
The Truth About Home Prices and Recessions - Part 2
Low mortgage rates trump the job market during recessions. The last recession was in 2001 and the Fed was cutting rates and mortgage rates were falling. Home sales then began to rise strongly.
Past deep housing recessions were accompanied by prolonged job losses and rising interest rates. We have falling interest rates today.
The economy added about four million jobs over the last two years. Household formation is about half of what it should be given the employment growth, which indicates that many buyers are sidelined right now.
When the housing market begins to recover, this usually signals the start of an economic recovery.
Today's low interest rates will lessen the pressure on foreclosures. Rising affordability assures higher home sales and home prices. Furthermore, low rates lessen the burden on existing homeowners with ARMS because the resets are not as financially painful.
The bottom line -- We have historically low interest rates and we will likely avoid recession (but the economic expansion will be slow in 2008). The high interest rates that have characterized past recessions are nowhere in sight.
Information from the National Association of Realtors
Past deep housing recessions were accompanied by prolonged job losses and rising interest rates. We have falling interest rates today.
The economy added about four million jobs over the last two years. Household formation is about half of what it should be given the employment growth, which indicates that many buyers are sidelined right now.
When the housing market begins to recover, this usually signals the start of an economic recovery.
Today's low interest rates will lessen the pressure on foreclosures. Rising affordability assures higher home sales and home prices. Furthermore, low rates lessen the burden on existing homeowners with ARMS because the resets are not as financially painful.
The bottom line -- We have historically low interest rates and we will likely avoid recession (but the economic expansion will be slow in 2008). The high interest rates that have characterized past recessions are nowhere in sight.
Information from the National Association of Realtors
Friday, June 27, 2008
May Existing-Home Sales Show Modest Gain
WASHINGTON, June 26, 2008
Existing-home sales increased in May with buyers responding to lower home prices, according to the National Association of Realtors®.
Existing-home sales – including single-family, townhomes, condominiums and co-ops – increased 2.0 percent to a seasonally adjusted annual rate 1 of 4.99 million units in May from a level of 4.89 million in April, but are 15.9 percent below the 5.93 million-unit pace in May 2007.
NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said buyers are seeing value in the current housing market. “Home buyers are starting to get off the fence and into the market, drawn by drops in home prices in many areas and armed with greater access to affordable mortgages,” he said. “Today’s buyer plans to stay in a home for 10 years, which is a good strategy for building long-term wealth.”
The national median existing-home price2 for all housing types was $208,600 in May, down 6.3 percent from a year ago when the median was $222,700.
Lawrence Yun, NAR chief economist, said there’s still a lot of inventory in the market. “The large supply of homes on the market clearly favors buyers, and it should take several months to draw the inventory down,” he said. “Stabilization in home prices can only occur with buyers returning to the market, so we are encouraged by rising home sales, particularly in distressed markets. Foreclosures and short sales appear to be a larger part of the market, particularly in California, and are creating a drag on current home prices.”
Total housing inventory at the end of May fell 1.4 percent to 4.49 million existing homes available for sale, which represents a 10.8-month supply3 at the current sales pace, down from a 11.2-month supply in April.
Although conditions remain mixed around the country, unpublished snapshot data shows a number of areas are experiencing much higher sales activity than May 2007, including Sacramento, the San Fernando Valley and Monterey County in California; Sarasota, Fla.; and Battle Creek, Mich.
“Keep in mind that the volume of home sales is the primary driver of economic activity that is tied to housing,” Yun said. “It’d be premature to say the improvement marks a turnaround. The market is fragile, so a first-time home buyer tax credit and a permanent raise in loan limits would be important steps to get the housing engine humming.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 6.04 percent in May from 5.92 percent in April; the rate was 6.26 percent in May 2007.
Single-family home sales rose 1.6 percent to a seasonally adjusted annual rate of 4.41 million in May from 4.34 million in April, but are 14.5 percent below the 5.16 million-unit pace in May 2007. The median existing single-family home price was $206,700 in May, which is 6.8 percent below a year ago.
Existing condominium and co-op sales increased 5.5 percent to a seasonally adjusted annual rate of 580,000 units in May from 550,000 in April, but are 24.6 percent lower than the 769,000-unit level a year ago. The median existing condo price4 was $223,400 in May, down 2.1 percent from May 2007.
Regionally, existing-home sales in the Midwest rose 5.5 percent in May to a pace of 1.16 million but are 16.5 percent lower than a year ago. The median price in the Midwest was $165,300, which is 0.7 percent below May 2007.
In the Northeast, existing-home sales rose 4.6 percent to an annual rate of 910,000 in May, but are 15.0 percent below May 2007. The median price in the Northeast was $278,000, down 2.4 percent from a year ago.
Existing-home sales in the West increased 2.0 percent to an annual pace of 1.02 million in May, but are 12.8 percent below a year ago. The median price in the West was $286,600, which is 16.0 percent lower than May 2007.
In the South, existing-home sales slipped 0.5 percent to an annual rate of 1.91 million in May, and are 17.0 percent below May 2007. The median price in the South was $175,000, down 4.3 percent from May 2007.
1. The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.
Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings. This differs from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which generally account for 85 percent of total home sales, are based on a much larger sample – nearly 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions.
2. The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the geographic composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.
3. Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982. Condos were tracked quarterly prior to 1999 when single-family homes accounted for more than nine out of 10 purchases (e.g., condos were 9.5 percent of transactions in 1998, 8.5 percent in 1990 and only 6.1 percent in 1982).
4. Because there is a concentration of condos in high-cost metro areas, the national median condo price can be higher than the median single-family price. In a given market area, condos typically cost less than single-family homes.
Existing-home sales for June will be released July 24, and the next Forecast/Pending Home Sales Index is scheduled for July 8.
Information provided by National Association of Realtors
Existing-home sales increased in May with buyers responding to lower home prices, according to the National Association of Realtors®.
Existing-home sales – including single-family, townhomes, condominiums and co-ops – increased 2.0 percent to a seasonally adjusted annual rate 1 of 4.99 million units in May from a level of 4.89 million in April, but are 15.9 percent below the 5.93 million-unit pace in May 2007.
NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said buyers are seeing value in the current housing market. “Home buyers are starting to get off the fence and into the market, drawn by drops in home prices in many areas and armed with greater access to affordable mortgages,” he said. “Today’s buyer plans to stay in a home for 10 years, which is a good strategy for building long-term wealth.”
The national median existing-home price2 for all housing types was $208,600 in May, down 6.3 percent from a year ago when the median was $222,700.
Lawrence Yun, NAR chief economist, said there’s still a lot of inventory in the market. “The large supply of homes on the market clearly favors buyers, and it should take several months to draw the inventory down,” he said. “Stabilization in home prices can only occur with buyers returning to the market, so we are encouraged by rising home sales, particularly in distressed markets. Foreclosures and short sales appear to be a larger part of the market, particularly in California, and are creating a drag on current home prices.”
Total housing inventory at the end of May fell 1.4 percent to 4.49 million existing homes available for sale, which represents a 10.8-month supply3 at the current sales pace, down from a 11.2-month supply in April.
Although conditions remain mixed around the country, unpublished snapshot data shows a number of areas are experiencing much higher sales activity than May 2007, including Sacramento, the San Fernando Valley and Monterey County in California; Sarasota, Fla.; and Battle Creek, Mich.
“Keep in mind that the volume of home sales is the primary driver of economic activity that is tied to housing,” Yun said. “It’d be premature to say the improvement marks a turnaround. The market is fragile, so a first-time home buyer tax credit and a permanent raise in loan limits would be important steps to get the housing engine humming.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 6.04 percent in May from 5.92 percent in April; the rate was 6.26 percent in May 2007.
Single-family home sales rose 1.6 percent to a seasonally adjusted annual rate of 4.41 million in May from 4.34 million in April, but are 14.5 percent below the 5.16 million-unit pace in May 2007. The median existing single-family home price was $206,700 in May, which is 6.8 percent below a year ago.
Existing condominium and co-op sales increased 5.5 percent to a seasonally adjusted annual rate of 580,000 units in May from 550,000 in April, but are 24.6 percent lower than the 769,000-unit level a year ago. The median existing condo price4 was $223,400 in May, down 2.1 percent from May 2007.
Regionally, existing-home sales in the Midwest rose 5.5 percent in May to a pace of 1.16 million but are 16.5 percent lower than a year ago. The median price in the Midwest was $165,300, which is 0.7 percent below May 2007.
In the Northeast, existing-home sales rose 4.6 percent to an annual rate of 910,000 in May, but are 15.0 percent below May 2007. The median price in the Northeast was $278,000, down 2.4 percent from a year ago.
Existing-home sales in the West increased 2.0 percent to an annual pace of 1.02 million in May, but are 12.8 percent below a year ago. The median price in the West was $286,600, which is 16.0 percent lower than May 2007.
In the South, existing-home sales slipped 0.5 percent to an annual rate of 1.91 million in May, and are 17.0 percent below May 2007. The median price in the South was $175,000, down 4.3 percent from May 2007.
1. The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.
Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings. This differs from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which generally account for 85 percent of total home sales, are based on a much larger sample – nearly 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions.
2. The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the geographic composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.
3. Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982. Condos were tracked quarterly prior to 1999 when single-family homes accounted for more than nine out of 10 purchases (e.g., condos were 9.5 percent of transactions in 1998, 8.5 percent in 1990 and only 6.1 percent in 1982).
4. Because there is a concentration of condos in high-cost metro areas, the national median condo price can be higher than the median single-family price. In a given market area, condos typically cost less than single-family homes.
Existing-home sales for June will be released July 24, and the next Forecast/Pending Home Sales Index is scheduled for July 8.
Information provided by National Association of Realtors
Thursday, June 26, 2008
The Truth About Home Prices and Recessions - Part 1
A few facts often overlooked by media reports
While it's true that the median price of an existing single-family home actually did drop by 1.4% in 2007, it's important to put this into context. Over the previous six years - the typical length of time an owner stays in one home - the median price has risen nearly 40 percent. Those owners just gave back just about two percentage points of that gain, still leaving them with a very handsome appreciation rate.
Mortgage interest rates today are hovering around 6 percent - about the same as they were 40 years ago. Interest rates on both fixed-rate and adjustable-rate mortgages have been trending down. Falling rates do not portend a recession.
Interest rates on jumbo loans, however, (those over the Fannie Mae and Freddie Mac loan limit) remain well above conventional mortgage rates. Therefore, it isn't surprising that the share of single-family homes selling for more than $500,000 (many of which would rely on jumbo loans) fell to 12.4 percent of transactions in December 2007, from 14.2 percent a year earlier. This could also account for some of thedrop in the median price last year.
...more to come tomorrow......
Information from the National Association of Realtors
While it's true that the median price of an existing single-family home actually did drop by 1.4% in 2007, it's important to put this into context. Over the previous six years - the typical length of time an owner stays in one home - the median price has risen nearly 40 percent. Those owners just gave back just about two percentage points of that gain, still leaving them with a very handsome appreciation rate.
Mortgage interest rates today are hovering around 6 percent - about the same as they were 40 years ago. Interest rates on both fixed-rate and adjustable-rate mortgages have been trending down. Falling rates do not portend a recession.
Interest rates on jumbo loans, however, (those over the Fannie Mae and Freddie Mac loan limit) remain well above conventional mortgage rates. Therefore, it isn't surprising that the share of single-family homes selling for more than $500,000 (many of which would rely on jumbo loans) fell to 12.4 percent of transactions in December 2007, from 14.2 percent a year earlier. This could also account for some of thedrop in the median price last year.
...more to come tomorrow......
Information from the National Association of Realtors
Wednesday, June 25, 2008
Home Ownership is a Great Financial Investment.
Home Ownership has been ---- and continues to be....one of the best financial investments.
- Americans on average still believe buying a home is a good investment. Nine out of ten consumers consider home ownership to be a sound financial decision.*
- Given the leverage in purchasing a home, the average return on a 5% down payment over 10 years is usually three to five times greater than stock market returns.*
- If you bought a house six years ago, it would be worth 24% more today.*
- Real estate has delivered the most consistent positive return over any investment over the last 40 years.*
* Information from the National Association of Realtors.
Tuesday, June 24, 2008
Now Is The Best Time To Buy A Home!
I just got back from a seminar on the current real estate market. And wow.......it
was informative. It appears that the media has been reporting information about
how bad our current real estate market is.
The year 2007 was the 5th best year on record. In fact, it was very similar to the home
sales gains experienced in 2002, when consumers were very confident about the
market.
Home prices are down. Inventory is up. And interest rates are among the lowest in
many years.
So any of you who have been on the fence about whether or not it was time to buy
a home......get off of the fence. NOW is the best time.
was informative. It appears that the media has been reporting information about
how bad our current real estate market is.
The year 2007 was the 5th best year on record. In fact, it was very similar to the home
sales gains experienced in 2002, when consumers were very confident about the
market.
Home prices are down. Inventory is up. And interest rates are among the lowest in
many years.
So any of you who have been on the fence about whether or not it was time to buy
a home......get off of the fence. NOW is the best time.
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