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We are your trusted real estate advisors in Union, Maplewood, Irvington, & Newark. For buying and selling homes From Vauxhall to Ivy Hill, Weequahic, Hilton, Larchmont, & everything in between.
2018 - NJ REAL ESTATE ON THE RISE
CoreLogic, a global property analytics and data provider, recently released a report showing that the housing market has nearly completely recovered from the recession of 2007/08.
As we all know, home prices collapsed nationwide in 2007. During the recession, home prices fell 33% nationwide, hitting their lowest in March 2011. Since then, home prices have risen once again by 51%. The average home prices is now 1% higher than its 2006 level, indicating the housing market has recovered in many parts of the U.S. including New Jersey, according to the report.
In New Jersey, several factors are Builder confidence has improved and job gains are measurably higher. Sales have increased since 2016. According to data from the NJ Realtor Association, In Q4 2017 pending sales increased by 9.1% from the previous year, and the number of closed sales are up by 5%.
As we all know, home prices collapsed nationwide in 2007. During the recession, home prices fell 33% nationwide, hitting their lowest in March 2011. Since then, home prices have risen once again by 51%. The average home prices is now 1% higher than its 2006 level, indicating the housing market has recovered in many parts of the U.S. including New Jersey, according to the report.
In New Jersey, several factors are Builder confidence has improved and job gains are measurably higher. Sales have increased since 2016. According to data from the NJ Realtor Association, In Q4 2017 pending sales increased by 9.1% from the previous year, and the number of closed sales are up by 5%.
WE HAVE AN INVENTORY PROBLEM
Econmists believe one of the main factors driving up home values is the low supply compared to demand in our market. Right now in NJ there is a severe lack of inventory compared to previous years. Believe it or not, at the end of 2017 the number of homes for sale was down by 19%! To put this in perspective- there were 10,000 fewer homes for sale compared to last year.
As we continue to evaluate rising home prices we will monitor whether certain key economic factors, such as higher mortgage rates and changes in tax laws—will lead to deceleration in the rate of home value growth.
As we continue to evaluate rising home prices we will monitor whether certain key economic factors, such as higher mortgage rates and changes in tax laws—will lead to deceleration in the rate of home value growth.
TAX PLAN HURTS UNION & ESSEX COUNTY
The tax reforms in 2018 are projected to have a greater impact in NJ than other states, due to comparatively high property tax, state income tax, and high cost of living. 7 NJ Counties made the Moody’s analytics top 10 list of places where housing markets would be most effected by the new tax plan. According to Moody’s report, Essex and Union County are at the top of the list, where home values are expected to take a 10.5% hit. The limit on property tax deductions is the biggest driver of price declines in Moody’s model. The new tax plan caps the property tax deduction at $10,000. In New Jersey, about 30 percent of homeowners pay more than that on their property tax bill.
Other factors, such as the limiting of mortgage interest deduction for new buyers, are also expected to effect home values. Analysists belive that potential home buyers may see the tax changes as providing less of an investment benefit for being a homeowner, and prefer to rent instead. In other words, lack of incentives could stifle the pursuit of home ownership.
But remember, this is just one forecast. And just like weather forecasts, economic predictions aren’t always right. In truth there is a lot of uncertainty about how badly the new tax plan is going to hurt home values. And while it’s not exactly a doomsday scenario for our housing market, most economists agree that there will be some sort of negative impact on home prices, especially in New Jersey.
Other factors, such as the limiting of mortgage interest deduction for new buyers, are also expected to effect home values. Analysists belive that potential home buyers may see the tax changes as providing less of an investment benefit for being a homeowner, and prefer to rent instead. In other words, lack of incentives could stifle the pursuit of home ownership.
But remember, this is just one forecast. And just like weather forecasts, economic predictions aren’t always right. In truth there is a lot of uncertainty about how badly the new tax plan is going to hurt home values. And while it’s not exactly a doomsday scenario for our housing market, most economists agree that there will be some sort of negative impact on home prices, especially in New Jersey.
BUYING & SELLING HOMES ONLINE
When we think of marketing a home for sale most of us consider the obvious, Zillow, Trulia, Realtor.com, and of course the local MLS. But did you know there are at least 10 other ways to put a property in front of potential buyers? A good marketing strategy should blend high tech, new school methods with old-school tried-and-true techniques. A good marketing package should offer each of these:
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KNOW YOUR MARKET
UnionUnion is often sought after because of it's location near most major NJ highways. It also boasts an impressive list of shopping, with big name stores like WholeFoods, Costco, & Home depot in town. Union also has a major University, a golf course, an up-and-coming downtown, and plenty of parks. |
MaplewoodMaplewood is one of the hottest markets in New Jersey right now. Known as 'Brooklyn West', Maplewood features quaint and vibrant village downtown, mid town direct train system, mix of housing stock including old victorians and historical homes, and a booming arts district. |
IrvingtonSince mayor Tony Vauss took over in 2010, Irvington has been on the rise. Recently, Irvington has experience a 15% increase in home values for single family homes, and has seen new development increase with the construction happening on Chancellor and Madison Avenue. |
NewarkIf their is one City that's undergoing a renaissance, it's Newark. Home values in Newark shot up in 2017, attracting attention from both small local buyers and larger international investment institutions. 2017 saw the opening of 2 new hotels, over 30 new restaurants, and over a dozen apartment buildings. |
DRONES TAKE VIRTUAL TOURS TO A NEW LEVEL
Current Trends in Real Estate
What the market is telling us about buying and selling real estate
The Buyers of TodayFrom 1981 until today, the average age of first time home buyers has increased slightly, from 29 to 32. But the average age for repeat buyers has gone up significantly, from 36 to 54, meaning today's buyers are likely to stay in their first homes for 3x as long. Married couples make up only 57% of all first-time buyers, down from 75% in 1985. Unmarried couples make up 18%. More than 2 times as many single females purchase homes than single males, 18% to 7%, respectively.
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Homes Moving FastToday, homes are selling faster than ever before. How fast is fast? Consider this: in 2001, active listings spent about 4 weeks on the market before going under contract. After the crash in 08-09, the market slowed down, with 11 weeks being the average in 2011. But in 2013 homes sales sped up again, this time even faster, to only 3 weeks on the market in 2017. So, what's the point? Home are selling, and they are selling fast!
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Low Inventory = High PricesIt is not secret that the shortage of housing stock across the US is contributing to an increase in home values. Inventory has fallen 28 consecutive months, and nationwide prices have increased for 67 months straight. So why the low inventory? It could be that many homeowners are still waiting for their home values to rise above Pre-08 crash levels. Also, 21% of homeowners say they won't sell because it is too expensive to move and upgrade to a new home.
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