2019 WINTER / SPRING REAL ESTATE MARKET REPORT
So 2019 is in full swing and we're coming up on that always anticipated Spring market. Let's recap how Union has done in the 1st quarter of 2019:
Total single family homes sold: 126
Avg list price: $334,683
Avg sales price: $329,305
Avg Days on Market: 51
# active listings: 160
Average sales price this March was up 12% over last year! For multi-family homes, the average sold price was $361,083. There are only 10 active multi-family listings right now. There is a serious lack of inventory!
Lowest single family sale: 268 Montclair Ave, SOLD $74,400
Highest single family sale: 380 Wayne Ter, SOLD $635,000
Lowest multi-family sale: 12 Roselyn Pl, SOLD $227,832
Highest multi-family sale: 349 Trotting Rd, SOLD $465,000
NJ Lecturers Gripe About Losing Offices, Then Lose Their Jobs
Landscaper Killed in Union Shopping Center
Who is Running in Union's Committee Primary in 2019?
This is just a market snapshot, I want you to be in the loop on what's happening in the area.
That's all for now!
Till' Next Time,
Silvio / Realty 33
534 MALCOLM RD, UNION NJ
ALERT ‼️ ALERT
This is an AWESOME deal in one of the best locations in Union, off Fairway Drive, right behind the Galloping Hill Golf Course.
This is the perfect home for an owner-occupant buyer, looking for a renovated forever home in a great neighborhood.
534 Malcolm Rd, available for $381,000!!
- Split level style construction
- 3 bedrooms, 2 full baths
- Fully renovated w/ finished basement
- Fenced in yard with patio
- LOW ⬇ taxes only $8,728!!
- Top notch secluded location 🏡
Here is an opportunity to buy a renovated split level in Union for less than 400k!
Click HERE for some interior pics / Check out the listing on Zillow HERe:
**Interested in this property? Text 973.506.9866 for more info**
When it comes to technology, we live in a very exciting time. Our ability to capture our world and share it right from our cell phones has changed the way we interact with one another forever.
In real estate, advancements in tech have made for some exciting new ways of doing business. Here are just a couple of examples of how technology is shaping how we buy and sell homes.
1. Drones. Drone technology and real estate are a match made in heaven. The "Bird's eye" view is used to see an entire piece of property in one image. Inspectors use drones to analyze roofs, chimneys, and other hard to reach areas. They provide a smooth and stable image for promotional videos, and it's just fun and looks cool!
2. Mobile capture/edit/share. A few years ago, in order to create a good piece of content one would have to first record a video, then transfer it to a computer, edit the video, and then upload it to whatever the preferred platform was at the time. Now, a tech savvy realtor can create and edit an entire walkthrough, upload it online and share it before even leaving the home. My clients often use FaceTime to share walkthroughs of a property with family members who couldn't make it to see the home.
3. E-Signatures. My personal favorite new tech is the digital signature. I love it so much that I even bought stock in my preferred
e-sig service, Docusign. My clients love it, too. I just upload the contract to Docusign, indicate which areas to signed and by whom, and then send it via email to the appropriate parties. On the other end my clients open the email, create a digital signature, and when they click on the highlighted areas on the document, the signature drops right in! the best part is - it can all be done on mobile, which is perfect for my busy clients.
4. Digital Lockbox. The digital lockbox is a nifty little invention. It's placed somewhere on the outside of the property with the keys in it, and can only be opened using a fob or mobile app. Only licensed realtors are given the access codes required to use the app. This makes it safer than a standard lockbox, where anyone who happens upon the combination could gain access to the home. The other major advantage of the digital lockbox is that it keeps a record of everyone that opened it, with a date and time stamp. In certain situations, it may be crucial to know the identity of the last person who entered the house.
5. Facebook Ads. Before FB ads, only companies with huge marketing budgets could create ad campaigns to target millions of potential customers at the same time. But not anymore! With FB ads anyone can choose a target audience, create a compelling message, and have the ad shown to that audience for as little as $1 (or even less) per day. For example, I might create a video walkthrough for a new listing, upload the video to facebook, and use FB ad targeting to put it in front of every would-be buyer in the NY metro area, all for less than $50. Recently, FB ads have come under some serous scrutiny.
Those are just a few example of how modern technology is reshaping the real estate industry. Look out for plenty more breakthroughs if Amazon jumps in and buys Redfin.
Your "brother-in-law's cousin that's a realtor part-time and will list our house for 1% commission" might not use all this tech, but I promise you that I do, and it 100% makes a difference in my client's home buying/selling experience.
So I've been getting a lot of questions about "as-is" sales lately, so I want to clarify exactly what it means:
An "as-is" sale in real estate basically happens when the seller doesn’t want to make any repairs or give the buyer any credits or concessions.
It acts as a shield for sellers to protect them against giving up any money later on during the inspection period.
It also relieves them of the responsibility to make repairs, should something serious come up on the home inspection. Seems pretty straight forward right? But it’s actually much more difficult to put in practice.
5 TRUTHS ABOUT AS-IS SALES:
#1. Nobody Cares. "As-is" is usually meaningless to the buyer, because regardless if the property is "as-is" or not, the buyer can still cancel the contract if the condition of the home is not satisfactory. Plus, agents and attorneys know that once they get you deeper into the transaction, you’re more likely to give a concession for fear of losing the deal and having to start all over.
#2 It's Overused. Almost 50% of listings have some sort of “as-is” language. That’s because in a strong market, sellers will use any advantage they can to get the most favorable terms. The problem is with so many “as-is” properties on the market though, is that “as-is” winds up not meaning anything!
#3. Not Compatible with FHA. If the buyer is using a mortgage, the chances of an “as-is” transaction are slim. If it’s FHA, then it’s even more difficult. That’s because the buyer’s lender may also request repairs as a condition for the loan, and most buyers are advised against spending money on repairing a home prior to taking ownership of it.
#4. Lowers Market Value. When buyers or agents see “as-is” sale, they instantly think the home need repairs. This perception can effect the market value of the home. It will also increase the probability of getting low ball offers. You can’t sell “as-is” for top dollar, it just doesn’t work.
#5. Net More with Concessions. If your home is in good to great condition, and you list it at market value, then you will likely net more money in the sale if you make small concessions during the inspection period, rather than list “as-is” for a lower price.Yes, it can be annoying when the buyer asks for a $15,000 credit for chipped paint and a leaky faucet. But if the requests are reasonable then throwing the buyer a "bone” can get you to the closing table faster, which will also save you more money in the end.
There are many smart ways to maneuver through the inspection period, and I’ll share with you some of my favorite tricks in another article.
Till next time!
2018 was a great year for New Jersey’s housing market and economy, but what’s in store for 2019 is still anyone’s guess. If you want to keep a pulse on what's happening with NJ homes values, especially in Union & Essex Counties, pay attention to these 5 areas in 2019:
INTEREST RATES: In 2018 interest rates rose 4 times to finish just north of 5% in December, but then dipped back down to 4.7% around Jan 2nd. As far as the rest of 2019, The Mortgage Bankers Association thinks rates will hold at 5.1%, while Realtor.com predicts the average 30-year loan rate will reach 5.5% by the end of year.
LOCAL DEVELOPMENT: Now more than ever, it’s important to stay in touch with what’s new on a local level. Use Tapinto.net, Patch.com, or your town's official website to check on nearby developments or construction projects and think about they effect home values your neighborhood.
NEW TAX LAW: This year there will be 2 big changes to the federal tax law that will effect many NJ residents. #1 is standard deductions have increased from $6,350 to $12,000 (and up to $24,000 for married couples), and #2 is the new $10,000 cap on property tax deductions. I recommend speaking with a qualified accountant ASAP to see how the new tax law will effect you.
MINIMUM WAGE: NJ lawmakers announced they have reached an agreement to raise New Jersey’s minimum wage. The new law will increase the minimum wage by $1 every year until it hits $15/hr by 2024. The increased minimum wage, along with changes to tax and healthcare policies, will no doubt have a deep effect on small businesses in NJ
STOCK MARKET: Last year was exciting for the stock market, it was like watching your favorite sports team! Now, many experts are predicting a crash is just around the corner. Considering we’ve been riding a bull market for the last 10 years, a correction does seem inevitable. The point is this - GET YOUR CASH READY - great buying opportunities are going to become available soon!
What do you think? Is there something I left off the list that we should be looking at?
-Silvio / Realty 33
At Realty 33, We tap into 25+ years of experience and market know-how to help our clients make streetwise real estate decisions.