How much can I afford for a monthly mortgage payment? Even the most financially astute or seasoned homebuyer will question the affordability of a monthly mortgage payment. Often when I pre-approve a buyer, they are surprised at the amount and question if they have the financial worthiness to afford the monthly payment. Continue reading 5 Years you will grow – buy as much as you can
5 Tips to Selecting a Mortgage Lender
Courtesy of Montgomery Mortgage Solutions, Inc.
Home ownership is the American Dream. Unfortunately, getting a mortgage these days can be a real nightmare. To help keep the stress of the mortgage process at a minimum, be sure to choose your lender carefully. Some offer a relatively easy process; while others do not.
Continue reading How to Select a Mortgage Lender
Data from the New Jersey Association of Realtors for August revealed a slight steady-as-she-goes tally with some softening in closed sales compared to the same time last year. Statewide, sales of single family homes fell from 7,498 in August 2013 to 6,768 in August 2014. New listings for single family homes rose slightly by 2.4% to 10,316 homes while pending sales, those with contracts not yet closed, also reported a slight increase by 1.4% to 6,012.
Continue reading New Jersey Market Update
Interest rates have remained near current levels since as far back as mid-May which makes more buyers eligible for financing. However, the low rates can’t produce more inventory as July home sales are down -7.2% from the same time last year, this according to the New Jersey Association of Realtors. Let’s take a look at this month’s numbers and dissect them for you.
Continue reading Real Estate Report
Real Estate Report
Interest rates have remained near current levels since as far back as mid-May which makes more buyers eligible for financing. However, the low rates can’t produce more inventory as July home sales are down -7.2% from the same time last year, this according to the New Jersey Association of Realtors. Let’s take a look at this month’s numbers and dissect them for you.
According to the report, single family home sales fell -7.2% to 7,154 units in the state while the median single family home price stabilized at $345,000. For all properties in New Jersey including condominium/townhome and adult communities, the median sales price actually increased 1.6%. The demand is certainly there it’s simply that lower inventory is keeping some home buyers on the sidelines.
Compared to July 2013, new listings for single family homes throughout New Jersey increased by 8.4% to 11,971 from 11,040 and pending sales, those with contracts not yet closed, tallied 6,549 for July 2014 compared with 6,421 last year, for a 2.0% bump. The number of days it takes to sell a typical home in New Jersey fell yet again from 80 days to 72, representing a 10% drop, a rather remarkable number and available inventory shrank as well by -3.9% to a 9.8 month supply of existing single family homes for sale. The town home and condo markets fared in the same manner, with 2,068 units sold and days on market fell by -17.6%, continuing this trend.
Central Jersey Data
Here in central New Jersey, new single family listings increased by 14.1% compared to July of 013 while the number of closed sales fell to 312 homes, a -17.5% drop. There are more listings in July of 2014 but the demand is still strong. The median sales price for a single family home rose yet again from $477,500 to $520,000 for an 8.9% gain. It’s not taking very long to sell a single family home either as the average number of days it takes to sell a listed home fell to 62 days from 67 in July of 2013.
Rate Watch
The national economy is still showing continued signs of gradual strength. The Q1 GDP number actually fell by -1.1% yet the Q2 number showed a 4.0% rise for a 5.1% change. That surprised many economists and the initial Q2 reading was thought to have been some sort of an anomaly but the report was confirmed when the revised GDP account actually rose 4.2%.
This along with fewer weekly jobless claims along with a continued increase in home values nationally should cause rates to rise rather than remain neutral. That’s because investors are paying more attention to geopolitical events in Ukraine and the Middle East and putting more funds into lower-yielding yet safer U.S. Treasuries and mortgage bonds keeping mortgage rates low.
And speaking of mortgage bonds, the Fed announced another reduction in the monthly QE stimulus and announced there will be no indication of an extension of the program. The Fed is currently buying $25 billion in Treasuries and mortgage bonds with the final phase out due in October. So far, investors have paid little attention to the ultimate end to the program which has helped keep rates so low for so long. Until worldwide skirmishes subside it’s quite possible interest rates will remain in their current range well into Q4.
Single family home housing data for the month of June was released by the New Jersey Association of Realtors providing us a snapshot of the very middle of the selling season. Statewide, pending sales, those with contracts not yet closed were up 6.5% last June compared to June 2013 while closed sales were down by -2.7%. New listings increased by a healthy 12.0% margin, year over year.
Continue reading June Housing Data
Your sales contract will have wording that allows you to back out of your contract and still receive your deposit back or allow you to adjust your offer. A home inspection is optional but highly suggested. A professional home inspector will crawl through your potential purchase from the basement through the roof making notes from a list of literally hundreds of physical and mechanical features of the home. Features that you want to know about.
Now that we’re full swing into the home selling season, it’s time again to take a look at statistics just released by the New Jersey Association of REALTORS. The May numbers, the most recent available, show a rather healthy market across the state when compared to the very same period last year. According to the report, in May there were 19,731 new listings compared with 17,895 in May 2013 representing a 10.3% increase. At the same time, inventory has fallen as well and while that’s to be expected as we move into spring and summer it’s still a reduction as we’re looking at May 2013 and May 2014 numbers. In May of last year, there was a 9.6 month supply of homes while this past May there was an 8.7 months of inventory. That’s a drop of nearly 10%. Continue reading July Real Estate and Mortgage News
We’re now in the middle of the spring and summer selling season and it’s time to look at recent trends and make some estimations of what we might expect in the near future. With Q2 now coming to an end and with four months of economic data released both by the New Jersey Association of REALTORS and the New Jersey Department of Labor we have some statistics that look to bode well for the Montgomery Township, Somerset County and the State of New Jersey as a whole. Let’s take a look at some of the numbers. Continue reading June New Jersey Market Report
When purchasing a home, a vital part to being sure you are getting a sound investment is to have a home inspection done. This is a step in the home buying process that you won’t want to forego. A home inspection company will investigate the home’s foundation, structural condition, heating and air conditioning units, plumbing, electrical system, roof, floors, windows, doors, insulation, and much more. They are there to assure you that the home is not in need of any major repairs and that all systems in the home are in good working condition. Continue reading Choosing a Home Inspection Company
Many people think that a condominium and townhouse can be classified as the same thing or that they are classified according to the type of structure. This is far from the truth; there are many differences between the two.
Continue reading Difference Between a Condominium and Townhouse
Purchasing a home can be a perplexing process; there are so many different people you have to deal with during the transaction, from a real estate agent to a title company to a lender. When it comes to choosing a lender, a buyer also has the question of whether they want to go with a mortgage banker, mortgage broker, or a bank. You might be asking yourself, “What is the difference?” Understanding the difference could be the key to saving thousands of dollars when you are purchasing a home. Continue reading Understanding the Difference between a Mortgage Banker, Mortgage Broker, and a Bank
While Central Jersey’s real estate market has seen a lot of positive growth in the last couple of years, the market is currently experiencing a slight slowdown of sales and a calm in the rising interest rates. This decrease in sales along with a decrease of over 2.5% in listing prices offers buyers an opportunity to take advantage of more affordable inventory. Middlesex County would be a good example of what is happening in Central Jersey. Middlesex County zip codes that have seen average listing price decreases are 08816, 08820, 08857 and 08854. Compared to last year’s numbers, Middlesex has also seen a 22.3% decrease in price per square foot. Continue reading Taking Advantage of Today’s Interest Rates And Values; Buy Now!
A buyer’s agent is a licensed real estate agent that is representing only the purchaser(s) in a real estate transaction. They are in place to look out for the best interest of their purchaser(s), find them a home that suits all of their needs, write up a purchase agreement when they have found the home of their dreams, and assist them through the entire home buying process, including the closing.
Continue reading Buyer’s Agent vs. Dual Agent