Realty Reality: November 2007

Friday, November 30, 2007

NJ Highlands Council Releases New Master Plan

The New Jersey Highlands Council has released a revised regional master plan (RMP) to oversee development and preserve the natural resources of the Highlands region. There will be three hearings and a comment period for public response to the plan.

Visit my web site for additional services and support: LawrenceYerkes.com

and visit Besthomes-NJ.com to find the latest New Jersey Real Estate property listings (Residential, Commercial, Multi-Family, Farm, Land).

New Jersey Senate Holds Eminent Domain Legislation

The New Jersey Senate Community and Urban Affairs Committee held a hearing on November 29, 2007. Discussion centered on S1975 – Rice (D28) [PDF], which was held for further review after extensive testimony. (Source: NJAR)

Home Buyers In 2008 - What's In, What's Out

Mark Nash, author of four real estate books including 1001 Tips for Buying and Selling a Home has completed his annual survey of 886 real estate agents in all fifty states in the U.S. and the eight provinces of Canada. What’s in, What’s out with Homebuyers illuminates what’s popular with home buyers, and what can sour them. (Source: RISMedia)

More Information . . .

Thursday, November 29, 2007

Southern New Jersey and the Delaware Bay

Here's a report, by the National Park Service, discussing "Historic Themes and Resources within the New Jersey Coastal Heritage Trail Route". It goes into interesting detail about the historical, geographical and cultural history of the South Jersey and Delaware Bay area, focusing on Cape May, Cumberland, and Salem Counties.

Full article

Click here for a color brochure (downloadable PDF file) about the South Jersey Bay Shore area

Click here for information about South Jersey lighthouses

Wednesday, November 28, 2007

Federal Reserve Beige Book November 2007 Report

Reports from the twelve Federal Reserve Districts suggest that the national economy continued to expand during the survey period of October through mid-November but at a reduced pace compared with the previous survey period. Among Districts, seven reported a slower pace of economic activity while the remainder generally pointed to modest expansion or mixed conditions.

District reports indicated relatively soft retail spending; most retailers said that they were expecting a slow holiday season, with only small gains in sales volumes compared with last year. By contrast, tourist activity expanded further in most Districts. Providers of nonfinancial services to consumers and businesses generally saw continued solid growth in demand, although a few Districts pointed to reduced demand for transportation services. Reports from the manufacturing sector were mixed across Districts and sectors, suggesting little change in activity on net. Producers in the agricultural and natural-resources sectors saw robust demand, with sales of agricultural products spurred in part by rapid growth in export demand. The glut of available homes continued, keeping downward pressure on prices and construction activity. The demand for commercial real estate remained strong in most areas but showed signs of leveling off in some. Reports from banks and other financial institutions suggested slower growth in overall loan demand, with some Districts noting a reduction in the volume of commercial and industrial lending.

Upward pressures on the prices of final goods and services remained modest overall but were significant for products and services that rely heavily on food and energy inputs. Increases in the costs of energy and selected raw materials pushed up production and transportation costs for firms in various manufacturing and services sectors, although this was offset in part by price declines for lumber and transportation equipment. Food prices remained on an upward trajectory. Outside of products and services that rely heavily on energy and food inputs, final prices were reported to be largely stable or down a bit. Wage increases were moderate in general; upward wage pressures eased in a few areas where labor markets loosened slightly, although they remained strong for assorted groups of skilled workers.

In the Philadelphia (Third District) region, business activity expanded modestly in October and early November. Manufacturers, on balance, reported slight increases in new orders and shipments. Retailers generally reported somewhat better sales growth in early November than in October. Auto sales remained slow, and below the year-ago level. Overall bank lending has been rising, with better growth in business lending than in consumer and real estate lending. Residential real estate sales remained well off the pace set last year and earlier this year, and home building continued to decline. Commercial building occupancy and rents have been rising, but building prices have eased down and leasing activity has slowed since mid-year. Firms reporting on labor costs generally noted a continuing trend of moderate increase in wages, but they continued to report large increases in health care benefits costs. Firms reported increases in input costs and output prices in November, and some noted that prices were rising for an increasing number of imported goods.

Third District firms generally foresee continued growth, but optimistic views are less prevalent than they were earlier this fall. Manufacturers expect increases in demand for their products, on balance, but the number forecasting increases has declined since a month ago. Retailers generally expect sales for the Christmas shopping period to increase from a year ago, but only modestly. Auto dealers generally do not expect the sales rate to strengthen. Bankers anticipate slow expansion in overall lending, with gains coming largely from commercial and industrial lending while consumer and real estate lending growth slows. Home builders and residential real estate agents expect sales to remain weak through the winter, and they are not certain that sales will improve appreciably next spring. Contacts in commercial real estate anticipate near steady demand for office and industrial space, although they believe leasing activity will not increase significantly unless employment growth in the region accelerates.
Source Beige Book

Click here for the Federal Reserve November 2007 Beige Book [Beige Book Archives]

See related blog articles:
Federal Reserve Beige Book For Economic Conditions (What is the "Beige Book"?)
The Federal Reserve - Making Sense In Plain English

Visit my web site for additional resources and services: www.LawrenceYerkes.com

and visit BestHomes-NJ.com for the latest New Jersey Real Estate property listings (residential, commercial, multi-family, farm, land)

Mixed Results For October Existing-Home Sales -- Mortgages Improving

WASHINGTON - Single-family existing-home sales were stable in October while the condo sector was down, according to the National Association of Realtors®(NAR). Lingering effects of the credit crunch were a drag on sales but the mortgage situation has improved significantly.

Total existing-home sales – including single-family, townhomes, condominiums and co-ops – eased by 1.2 percent to a seasonally adjusted annual rate[1] of 4.97 million units in October from a downwardly revised level of 5.03 million in September, and are 20.7 percent below the 6.27 million-unit pace in September 2006.

Lawrence Yun, NAR chief economist, expected the sluggish performance. “As noted last month, temporary mortgage problems were peaking back in August when many of the sales closed in October were being negotiated. We continue to see the biggest impact in high-cost markets that rely on jumbo loans,” he said. “Mortgage availability has improved as evidenced by much lower mortgage interest rates and a sharp jump in FHA endorsements for home purchases.

“A trend away from subprime mortgages to FHA loans, which often carry much lower interest rates, is a positive development for consumers and the housing market going forward. Still, it will take some time for the change to yield a measurably higher closed sales volume in the aftermath of the subprime collapse. In the near term, we expect home sales to remain fairly stable.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 6.38 percent in October, unchanged from September; the rate was 6.36 percent in October 2006. Last week, Freddie Mac reported the 30-year fixed rate fell to 6.20 percent.

The national median existing-home price[2] for all housing types was $207,800 in October, down 5.1 percent from October 2006 when the median was $218,900, but there is a downward distortion from the temporary problems with jumbo loans that slowed sales in high-price markets, and that dragged down the national median.

NAR President Richard Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., emphasized that all real estate is local. “Keep in mind that home prices are up in 93 out of 150 metro areas, and there is a lot of confusion in the market from reports about national data. Broadly speaking, home prices in most areas are up modestly or fairly stable,” he said. “Areas with population or job growth are seeing the strongest home price gains.”

Among the many metro areas showing healthy price gains are Charlotte, N.C.; San Francisco; Albuquerque; and Green Bay, Wis.

Total housing inventory rose 1.9 percent at the end of October to 4.45 million existing homes available for sale, which represents a 10.8-month supply[3] at the current sales pace, up from a downwardly revised 10.4-month supply in September.

Single-family home sales were unchanged from September at the seasonally adjusted annual rate of 4.37 million in October, and are 20.8 percent below 5.52 million-unit level in October 2006. The median existing single-family home price was $205,700 in October, down 6.3 percent from a year ago.

Existing condominium and co-op sales fell 9.1 percent to a seasonally adjusted annual rate of 600,000 units in October from 660,000 in September, but are 20.2 percent below the 752,000-unit pace in October 2006. The median existing condo price[4] was $223,500 in October, up 4.9 percent from a year ago.

Regionally, existing-home sales in the Northeast were unchanged at an annual pace of 900,000 in October, and are 12.6 percent below October 2006. The median price in the Northeast was $258,700, up 1.3 percent from a year ago.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.

# # #

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. Comparisons of current total month’s supply with single-family data prior to 1999 are broadly valid because single-family homes accounted for more than nine out of 10 purchases in the earlier timeframe (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 November will be released December 31. The next Forecast / Pending Home Sales Index is scheduled for December 10.

Tuesday, November 27, 2007

Property Tax Exemptions Available to Qualified Military Veterans

If you are a veteran of the military or currently on military active duty on a "peacekeeping mission", then you need to fill out one of the following state forms for an exemption from taxes from municipality in which you reside.

Disabled Veteran or Surviving Spouse Exemption
Veteran or Surviving Spouse Deduction
Supplemental Form For Peacekeeping Missions

Friday, November 23, 2007

South Jersey Properties - Quick Search By County

Quick Search by CountyClick on following links to open a corresponding county search page:

Burlington County
Camden County
Gloucester County
Mercer County
Atlantic County
Cumberland County
Salem County
Ocean County:
- Ocean County - North (includes Monmouth County)
- Ocean County - South
- Ocean City Area (includes part of Ocean County and North Cape May County)
Cape May:
- Ocean City Area (includes North Cape May County and part of Ocean County)
- Cape May - South

Once a county search page is selected, you will be able to select by town (municipality), zip code and MLS# within county.

Click here for the South Jersey Resource Center.

Click here for more local resources related to South Jersey and surrounding areas

Wednesday, November 21, 2007

Celebrate: Thanksgiving Day - Interesting Facts from Census Bureau - 2007

What many regard as the nation’s first Thanksgiving took place in December 1621 as the religious separatist Pilgrims held a three-day feast to celebrate a bountiful harvest.

The day did not become a national holiday until 1863 when, at the end of a long and bloody civil war, Abraham Lincoln asked all Americans to set aside the last Thursday in November as a day of thanksgiving.

Later, during the Great Depression in 1939, President Franklin Roosevelt proclaimed that Thanksgiving should be celebrated on the next to last Thursday of the month to encourage earlier holiday shopping, never on the occasional fifth Thursday. However, it was not mandatory and not all states complied.

Finally, Congress ruled that after 1941 the 4th Thursday in November would be a federal holiday proclaimed by the President each year. (Source: usinfo.state.gov, census.gov)

Click here for the Census Bureau's Thanksgiving 2007 Interesting Facts page

Visit my web site for additional resources and services: http://lawrenceyerkes.com/

or visit http://besthomes-nj.com/ for the latest New Jersey Real Estate property listings (residential, commercial, multi-family, farm, land)

Median Home Prices Rise in Most Metros - Majority Showing Modest Gains

WASHINGTON - The vast majority of metropolitan areas showed rising or stable home prices in the third quarter with most experiencing modest gains compared with a year earlier, despite a broad decline in existing-home sales, according to the latest quarterly survey by the National Association of Realtors® (NAR).

In the third quarter, 93 out of 150 metropolitan statistical areas 1 show increases in median existing single-family home prices from a year earlier, including six areas with double-digit annual gains and another 21 metros showing increases of 6 percent or more; 54 had price declines, and three were unchanged. Regionally, prices rose in both the Northeast and Midwest, as did the national condo price.

Lawrence Yun, NAR chief economist, said the data underscores the fact that all real estate is local. “Some metro areas are hot while others are experiencing localized problems,” he said. “The report also shows that home prices in the vast midsection of America, from the Appalachians to the Rockies, are affordable and, perhaps, even undervalued.

“This quarterly metro home price report is the most meaningful long-term series available on price performance because it looks at all of the available transactions in a given area. Unlike other home price series that are based on county records and mortgage securities, which are collected well after the actual transaction date, NAR has the most timely information directly from multiple listing services. We also report actual market prices rather than just the percentage changes so people can compare housing values around the country.”

Even with most areas showing improvement, a disruption in higher priced sales impacted the national median existing single-family home price, which was $220,800 in the third quarter, down 2.0 percent from the third quarter of 2006 when the median price was $225,300. The median is a typical market price where half of the homes sold for more and half sold for less.

NAR President Richard Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said consumers need to understand what’s going on in their own area. “There is no such thing as a national housing market – it doesn’t perform like the equities markets,” he said. “What’s really important for consumers is to make informed decisions based on individual needs, desires and timelines in a given area. Most people plan to stay in a home for 10 years, and for buyers with a long-term view, housing is an excellent investment.”

The typical seller purchased their home six years ago, with the median price in the third quarter of 2001 at $159,100. Despite the dip in the national median price over the past year, the median increase in value for home sellers who bought six years ago is 38.8 percent. “Nearly every market is showing positive long-term gains, with a home equity accumulation of $61,700 over the past six years for a typical U.S. homeowner,” Gaylord said. “Even in most of the places that are undergoing a large price decline, long-term increases are quite respectable. For example, the Sarasota area of Florida is showing a median rise in home value of $112,000 over the typical holding period, and ranks well above norm for overall gains.”

In the third quarter, the largest single-family home price increase was in Bismarck, N.D., area, where the median price of $161,600 rose 15.1 percent from a year ago. Next was the Salt Lake City area, at $246,700, up 14.1 percent from the third quarter of 2006, followed by Yakima, Wash., where the third quarter median price increased 13.6 percent to $163,200. Although most of the areas showing price declines were down modestly, three metros experienced double-digit drops.

Median third-quarter metro area single-family home prices ranged from a very affordable $81,600 in the Youngstown-Warren-Boardman area of Ohio and Pennsylvania, to more than 10 times that amount in the San Jose-Sunnyvale-Santa Clara area of California, where the median price was $852,500. The second most expensive area was San Francisco-Oakland-Fremont, at $825,400, followed by the Anaheim-Santa Ana-Irvine area (Orange County, Calif.), at $700,700.

Other affordable markets include the Saginaw-Saginaw Township North area of Michigan, with a third-quarter median price of $84,900, and Decatur, Ill., at $85,900.

In the condo sector, metro area condominium and cooperative prices – covering changes in 59 metro areas – show the national median existing condo price was $226,900 in the third quarter, up 2.0 percent from $222,500 in the third quarter of 2006. Forty-one metros showed annual increases in the median condo price, including six areas with double-digit gains; 18 areas had price declines.

The strongest condo price increases were in Bismarck, N.D., where the third quarter price of $133,300 rose 22.3 percent from a year earlier, followed by the Austin-Round Rock area of Texas, at $171,700, up 19.2 percent, and the Portland-Vancouver-Beaverton area of Oregon and Washington, where the median condo price of $210,200 rose 14.9 percent from the third quarter of 2006.

Metro area median existing-condo prices in the third quarter ranged from $114,000 in the Rochester, N.Y., area, to $663,700 in the San Francisco-Oakland-Fremont area. The second most expensive condo market reported was Los Angeles-Long Beach-Santa Ana, at $388,800, followed by the San Diego-Carlsbad-San Marcos area at $351,900.

Other affordable condo markets include Wichita, Kan., at $117,100 in the third quarter, and the Cincinnati-Middletown area of Ohio, Kentucky and Indiana at $117,500.

Total state existing-home sales, including single-family and condo, were at a seasonally adjusted annual rate2 of 5.42 million units in the third quarter, down 13.7 percent from a 6.29 million-unit pace in the third quarter of 2006. “The housing market correction is clearly focused on transaction volume and not in home prices,” Yun noted.

According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage was 6.55 percent in the third quarter, up from 6.37 percent in the second quarter; the rate was 6.56 percent in the third quarter of 2006. Last week, Freddie Mac reported the 30-year fixed rate was down to 6.24 percent.

Only two states showed annual gains in existing-home sales from the third quarter of 2006, while complete data for two states were not available. In North Dakota, the level of third-quarter sales rose 2.9 percent from a year ago, while Vermont increased 0.8 percent. “The biggest decline in sales appears to be concentrated in areas that had significant levels of speculative investment, including Nevada, Florida and Arizona,” Yun said.

Regionally, the median existing single-family home price in the Northeast rose 3.2 percent to $286,300 in the third quarter from the same period 2006. Total existing-home sales in the region declined 7.3 percent to an annual pace of 973,000 units in the third quarter from the same period a year ago.

The strongest price increase in the Northeast was in the Binghamton, N.Y., area, at $119,600, up 11.4 percent from the third quarter of last year, followed by Reading, Penn., with a median price of $162,900, up 7.0 percent, and Atlantic City, N.J., at $273,100, up 6.2 percent.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.

# # #

1 Areas are generally metropolitan statistical areas as defined by the U.S. Office of Management and Budget. A list of counties included in MSA definitions is available at: http://www.census.gov/population/estimates/metro-city/0312msa.txt

Regional median home prices include rural areas and samples of many smaller metros that are not included in this report; the regional percentage changes do not necessarily parallel changes in the larger metro areas. The only valid comparisons for median prices are with the same period a year earlier due to seasonality in buying patterns. Quarter-to-quarter comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns.

NAR began tracking of metropolitan area median single-family home prices in 1979; the metro area condo price series was launched at the beginning of 2006, with several years of historic data.

Because there is a concentration of condos in high-cost metro areas, the national median condo price sometimes is higher than the median single-family price. In a given market area, condos typically cost less than single-family homes. As the reporting sample expands in the future, additional area will be included in the condo price report.

Tables of metropolitan area median prices, percent changes and some historic data are available at the site below – under Research click on Housing Statistics, then scroll down the center to Metropolitan Area Prices.

Visit my web site for additional services and support: LawrenceYerkes.com

and visit Besthomes-NJ.com to find the latest New Jersey Real Estate property listings (Residential, Commercial, Multi-Family, Farm, Land).

Tuesday, November 20, 2007

Commercial Real Estate Index Levels Out in 3rd Quarter

WASHINGTON - Commercial real estate market activity is expected to level out, suggesting stable business opportunities for commercial practitioners in the months ahead, according to a forward-looking index for the commercial real estate sectors published by the National Association of Realtors®(NAR).

The Commercial Leading Indicator for Brokerage Activity* slipped 0.1 percent to an index of 120.6 in the third quarter from a record reading of 120.7 in the second quarter, but remains 0.7 percent higher than the third quarter of 2006 when it stood at 119.7. The dip follows nine consecutive quarterly increases; NAR’s track of the index dates back to 1990.

Lawrence Yun, NAR chief economist, said momentum in the commercial market appears to be leveling at a high plateau. “Commercial real estate has been performing quite well over the past few years and the flattening index means net absorption of space in the industrial and office sectors is likely to contract modestly or hold even over the next six to nine months,” he said. “This trend is consistent with anticipated slower economic expansion in upcoming quarters.”

There should be no measurable change in net absorption in the office and industrial sectors in the first quarter of 2008, and no measurable change in newly completed commercial construction activity.

The level of the commercial leading indicator also implies that commercial real estate practitioners could expect leasing and sales activity in the first quarter of next year to be about 0.7 percent higher than the first quarter of 2007.

The commercial leading indicator is a tool to assess market behavior in the major commercial real estate sectors. The index incorporates 13 variables that reflect future commercial real estate activity, weighted appropriately to produce a single indicator of future market performance, and is designed to provide early signals of turning points between expansions and slowdowns in commercial real estate.

The 13 series in the index are industrial production, the NAREIT (National Association of Real Estate Investment Trust) price index, NCREIF (National Council of Real Estate Investment Fiduciaries) total return, personal income minus transfer payments, jobs in financial activities, jobs in professional business service, jobs in temporary help, jobs in retail trade, jobs in wholesale trade, initial claims for unemployment insurance, manufacturers’ durable goods shipment, wholesale merchant sales, and retail sales and food service.

Nearly 140,000 NAR members offer commercial services, and 73,000 of those are currently members of the Realtors® Commercial Alliance, NAR’s commercial division.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
# # #
*NAR reviewed a wide variety of indicators, examined the relationships of indicators that demonstrated a historical impact on commercial real estate, and modeled a forward-looking index based on historic trends. Although individual indicators sometimes move in opposite directions, together they offer a better indication of future market activity.

Quarterly data for 13 selected series were reviewed back through the first quarter of 1990. The modeling demonstrated a change in commercial brokerage activity that could be seen two quarters later as measured by net absorption in the industrial and office sectors, and the completion of new commercial buildings as measured by the value of building construction put-in-place of office, warehouse, retail and lodging structures. An index of 100 is defined as the level of commercial real estate market activity during the first quarter of 1990, the first period to be analyzed.

The next commercial real estate market report and forecast is scheduled for release on December 19, and the next commercial leading indicator index will be released February 20.

Visit my web site for additional services and support: LawrenceYerkes.com

and visit Besthomes-NJ.com to find the latest New Jersey Real Estate property listings (Commercial, Residential, Multi-Family, Farm, Land).

Friday, November 16, 2007

Green Building Benefits to Homeowners and Sellers

While nearly seven in every 10 consumers believe that energy conservation is important or extremely important, the cost of green improvements is still a significant factor in many home buyers’ decisions about purchasing energy-efficient home features. Realtors® attending today’s “Greening for Dollars: The Business Benefits of Green Building” session at the National Association of Realtors® (NAR) 2007 REALTORS® Conference & Expo heard insights like this and others regarding consumer interest in and concerns about green building trends in today’s real estate market.

Studies have shown that environmental issues are a growing concern among today’s home buyers and sellers. According to the 2007 Profile of Buyers’ Home Feature Preferences, a significant majority of new home buyers – 65 percent – think their home’s energy efficiency is a very important consideration. Buyers who placed a priority on energy efficiency were also more likely to value other environment-friendly features, such as proximity to parks and public transportation, and existence of sidewalks in the neighborhood.

“In the past few years, consumers have been bombarded by the marketing messages of companies jumping on the green-friendly bandwagon,” said Suzanne Shelton. “People are becoming much more inquiring about the bill of green goods being sold to them – not only in terms of ‘is it as green as what they say it is,’ but also ‘does it matter enough to me to pay extra?’”

Some of the ways homeowners can improve the energy efficiency of their homes include projects such as window replacements, new appliances, and insulation, as well as planning features like landscaping and – for new homes – site orientation to take advantage of sun and shade during different seasons.

“Many consumers don’t realize the benefits of green-friendly home features, or that there are ‘green’ mortgages available to help people purchase a home that meets certain requirements or improve the energy efficiency of an existing home,” said Janet Rosenberg, a Realtor® who has integrated green practices into her real estate business. “People hear so much these days about global warming and climate change, but often don’t make the connection close to home. As Realtors® who care about our communities, we have a responsibility to educate buyers, sellers and homeowners on the importance of green building practices and energy efficient homes.”

Source: NAR -- The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of residential and commercial real estate industries.

###

Lawn Care: Winterization Feeding

Just as your house requires winter-proofing, so does your lawn. Almost all lawns, both in the North and in the South, will react to the cooler weather in the fall by entering a period of dormancy or extremely slow growth. Just prior to this period of dormancy is the time you should apply your last fertilization application. (Source: American -Lawns.com)

Lawn Tips

Visit my web site for additional services and support: LawrenceYerkes.com

and visit Besthomes-NJ.com to find the latest New Jersey Real Estate property listings (Residential, Commercial, Multi-Family, Farm, Land).

Tips . . .

Thursday, November 15, 2007

Owning And Keeping A Home

There's nothing like the feeling of being a homeowner. But owning a home is an ongoing commitment - new issues and responsibilities can come up at any time. (Source: Freddie Mac.com)

Key topics discussed:
Moving
Remodeling
Refinancing
Avoiding Foreclosure...

Keep your home . . .

Visit my web site for additional services and support: LawrenceYerkes.com

and visit Besthomes-NJ.com to find the latest New Jersey Real Estate property listings (Residential, Commercial, Multi-Family, Farm, Land).

Americans Believe Buying a Home Still a Good Financial Decision

LAS VEGAS - Americans remain convinced that buying a home is a good long-term investment. That’s just one of the findings from the 2007 National Housing Pulse Survey, released today during the annual REALTORS® Conference & Expo, here through November 16.

The survey measures how affordable housing issues affect consumers. This year’s results show that nearly nine out of 10 consumers believe that buying a home is a good financial decision. Fifty-nine percent of respondents also agree that now is a good time to buy a home; that number is even higher (64 percent) in areas of recent home price declines.

“Owning a home continues to be a good, long-term investment, and most consumers understand that,” said National Association of Realtors®(NAR) President Pat V. Combs. “This new survey clearly shows that people believe in the value of homeownership and know that owning a home is one of the best ways for most families to build a nest egg.”

This year’s survey shows that Americans are more concerned about obtaining a mortgage and having enough money for down payment and closing costs than they have been in five years of polling. Nearly six in 10 respondents believe it’s difficult for people in their area to obtain a fair and affordable mortgage. More than eight in 10 say having enough money for down payment and closing costs are obstacles for home buyers in their area, up 17 percent from 2005. Sixty-three percent also think the mortgage approval process is an obstacle, up 13 percent since 2005.
“Buyers in the conventional market can still obtain mortgages at very favorable rates,” said Combs. “In addition, NAR is advocating for FHA modernization; changes to this program will help many more first-time buyers become homeowners.”

Of those surveyed, more than one in five homeowners have some type of variable-rate mortgage, including interest-only (15 percent), adjustable-rate (6 percent) and a balloon or other large payment due in the next five years (2 percent).

These homeowners feel more strain from their monthly mortgage payment than those with fixed rates. In fact, more than half of those with variable-rate mortgages say they feel a significant or slight strain, whereas fifty-three percent of those with fixed-rate mortgages feel little or no strain at all. Despite these findings, only five percent of respondents say they are very or fairly worried about being able to make their mortgage payments over the next year.

When it comes to challenges facing the mortgage market, Americans are split on the need for more federal government oversight. Forty-seven percent believe the federal government should take a more active role, while 45 percent believe oversight is the private sector’s responsibility.

While 32 percent of those surveyed perceived the rate of home foreclosures in their area to have increased over the past year, 39 percent report the rate has remained about the same; 6 percent believe the foreclosure rate has decreased in their area. When asked how big of a problem foreclosures were in their area, 38 percent of respondents said foreclosures were a very big or moderate problem, but the majority, 51 percent, said foreclosures were only a slight problem or not one at all.

“Realtors® are in the business of helping people into homes, and we want to make sure they can afford to stay there,” Combs said. “NAR believes that one foreclosure is one too many, and we are working with government agencies, lenders and consumer groups to protect home buyers and sellers in the real estate transaction and beyond.”

The lack of affordable housing continues to be a greater concern than jobs, crime, terrorism or the environment. Nearly seven in 10 survey respondents are concerned about the cost of housing in their area. In the short term, more than half of survey respondents believe home sales and values in their neighborhood will remain about the same in the next three months. Only one-fourth of those surveyed believe sales and values will continue to decrease, while about 10 percent believe they will rise.

The 2007 National Housing Pulse Survey is conducted by NAR’s Housing Opportunity Program. The telephone survey was among 1,000 adults living in the United States in October 2007. The study has a margin of error of plus or minus 3.1 percentage points.

The Housing Opportunity Program was created in 2002 to provide Realtors® with the tools and information they need to promote housing opportunities in their community, in both the rental and homeownership sectors of the market. The program encourages local Realtor® associations to create housing opportunity initiatives aimed directly at helping consumers gain access to housing. To date, nearly 600 state and local associations have such programs in place.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.

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Wednesday, November 14, 2007

Natural Disaster Preparations

We often forget what a real emergency is until we are reminded by a disaster such as a hurricane, flood or fire. Emergencies and disasters can occur anytime, anywhere. Some are primarily seasonal and allow for certain preparations; others occur swiftly and without warning. (Source: NAHB)

Main areas covered regarding being prepared for Natural Disasters:
* Be Informed
* Develop a Family Plan
* Stockpile Food and Supplies
* Be Prepared to Evacuate
* After the Emergency

Natural Disaster Tips . . .

Tuesday, November 13, 2007

Fighting Foreclosure -- Eight Do's and Don'ts

In the beginning of the foreclosure process, homeowners can still save money, their credit or their house if they act quickly. Even when declaring bankruptcy, avoiding a foreclosure on your credit report can salvage your ability to rebuild credit and buy another house, which makes the struggle against a possible foreclosure well worthwhile. (Source: BankRate.com)

Fight Foreclosure . . .

NAR Survey Shows Consumers Very Satisfied With Agent Performance

LAS VEGAS - A new consumer survey shows that buyers and sellers are very satisfied with their real estate professionals. Home buyers use many tools in the transaction process, and both buyers and sellers highly value the personal touch and services real estate professionals offer. The survey was released here today at the 2007 REALTORS® Conference & Expo.

The 2007 National Association of Realtors®(NAR) Profile of Home Buyers and Sellers, based on nearly 10,000 responses to a questionnaire mailed to a large national sample of consumers, is the latest in a series of NAR surveys evaluating demographics, marketing, preferences and experiences of home buyers and sellers.

Lawrence Yun, NAR chief economist, said real estate is a very competitive industry, and the survey findings support that assertion. “The real estate industry is unique in that participants share vital information with their competitors,” he said. “The industry is also very entrepreneurial. Real estate professionals constantly experiment with business models and cater to a wide array of consumer interests and preferences. NAR embraces this competition, and to succeed in this marketplace, Realtors® must place a high priority on client satisfaction.”

The survey shows that 79 percent of home buyers and sellers used a real estate professional, up from 77 percent over the past three years, and nearly nine out of 10 buyers were very satisfied with their agent’s knowledge of the process. More than eight out of 10 sellers and nearly nine out of 10 buyers would definitely or probably use the same agent again or recommend him or her to others.

NAR 2007 President Pat V. Combs, from Grand Rapids, Mich., and vice president of Coldwell Banker-AJS-Schmidt, said people most commonly choose an agent based on word-of-mouth recommendations. “While some consumers shop for the lowest fee, most people are looking for a real estate agent they can trust and who is knowledgeable about local market conditions,” she said. “That knowledge and experience helps Realtors® add value to the real estate transaction.”

Forty-one percent of sellers found their agent as a result of a referral, while 23 percent used the agent in a previous home purchase. Similarly, 43 percent of buyers relied on referrals to find an agent, while 17 percent of repeat buyers used an agent from a previous transaction. “Real estate is very much a face-to-face people business,” Combs said.

According to the survey, the most important factors in choosing an agent for buyers are honesty and integrity, followed by the agent’s reputation. Other important qualities buyers value in an agent include knowledge of the purchase process and responsiveness. For sellers, the most important factor in choosing an agent is reputation, followed by honesty and trustworthiness.

Most sellers continue to favor full-service brokerage, where real estate agents provide a range of services that generally entail managing the entire process of selling a home. Limited services, which may include discount brokerage, and minimal services also are important business models for sellers who want to take an active role in the process such as holding open houses, contacting potential buyers, negotiating terms or preparing the contract. All of these types of services are provided by Realtors® as well as non-member agents and brokers.

The study finds 81 percent of sellers use full-service brokerage, 9 percent choose limited services and 9 percent use minimal service, such as simply listing a property on a multiple listing service. These are comparable to the findings in 2006.

Home buyers are clear in their expectations of real estate agents. The most important are helping them to find the right house, and negotiating sales terms and price. Because agents often are chosen based on a referral, or were used in a previous transaction, 80 percent of buyers use only one real estate agent in the search process.

When asked about the benefits provided by agents, 57 percent of buyers said they helped them understand the process, 47 percent said their agent pointed out unnoticed features or faults with the property, 40 percent reported the agent improved their knowledge of search areas, 38 percent negotiated better contract terms, 37 percent offered a better list of service providers, 35 percent shortened the search process, and 32 percent negotiated a better price.

At 39 years old, the typical home buyer is two years younger than in 2006, earned $74,000 and purchased a home costing $215,000. Buyers searched eight weeks and visited 10 homes before making a decision.

Buyers cast a wide net in searching for a home and use a variety of resources: 84 percent use the Internet (up from 80 percent in 2006), 84 percent use a real estate agent, 59 percent yard signs, 50 percent print or newspaper ads and 48 percent attend open houses. Smaller categories include a home book or magazine, home builders, television, billboards and relocation companies. Buyers most commonly start their search online, and then contact a real estate agent.

When asked where they first learned about the home purchased, 34 percent of buyers identified a real estate agent; 29 percent the Internet; 14 percent from yard signs; 8 percent from a friend, neighbor or relative; 8 percent home builders; 3 percent a print or newspaper ad; 3 percent directly from the seller; and 1 percent a home book or magazine.

Eighty-two percent of home buyers who used the Internet to search for a home purchased through a real estate agent, in contrast with 65 percent of non-Internet users, who were nearly twice as likely to purchase directly from a builder, or more than three times as likely to buy from an owner they knew before the transaction.

Local metropolitan MLS Web sites were the most popular Internet resource, used by 54 percent of buyers; followed by Realtor.com, 49 percent; real estate company sites, 44 percent; real estate agent Web sites, 40 percent; for-sale-by-owner sites, 20 percent; and local newspaper sites, 12 percent; other categories were smaller.

Sixty-two percent of buyers are married couples, 20 percent are single women, 9 percent single men, 7 percent unmarried couples and 2 percent other. Nine percent were born outside of the United States, and 5 percent primarily speak a language other than English.

The number of first-time buyers rose to 39 percent from 36 percent of transactions in 2006. The median age of first-time buyers was 31, and the median income was $58,600. The typical first-time buyer purchased a home costing $165,000 and plans to stay in that home for seven years. The median downpayment by first-time buyers was 2 percent, but 45 percent purchased with no money down – the same as in 2006. “Most of the transactions in this survey took place before the credit crunch impacted the market, so the percentage purchasing with no money down is likely to be much smaller today,” Yun said.

Of first-time buyers who made a downpayment, 73 percent used savings and 22 percent received a gift from a friend or relative, normally from their parents.

The typical repeat buyer is 46 years old, earned $85,700, purchased a home costing $250,000 and plans to stay in that home for 10 years. Repeat buyers made a median downpayment of 16 percent, the same as in 2006, but 10 percent paid cash for their property. Of those making downpayments, 60 percent used equity from their previous home.

Of buyers who used an agent, 62 percent chose a buyer’s representative. Two-thirds said their agent was compensated by the seller, 15 percent of agents were paid by the buyer and 9 percent were paid by both.

Nearly three-quarters of all buyers purchased a detached single-family home, 11 percent a condo, 9 percent a townhouse or rowhouse, and 5 percent some other kind of housing; 77 percent of respondents bought an existing home and 23 percent purchased a new home. When viewed as an investment, more than three-quarters believe their home will perform at least as well as stocks.

The median distance from the previous residence was 13 miles. Fifty-six percent of all homes purchased were in a suburb or subdivision while 16 percent were in an urban area, 16 percent in a small town, 10 percent in a rural area and 2 percent in a resort or recreation area.

The biggest factors influencing neighborhood choice varied by household type, but overall they were quality of the neighborhood, cited by 65 percent of respondents; convenience to jobs, 50 percent; overall affordability of homes, 42 percent; and convenience to family and friends, 37 percent. Other factors with higher responses include quality of the school district, 28 percent; convenience to shopping, 27 percent; and neighborhood design, 26 percent.

The median age of a home seller is 45, with an income of $89,400. Seventy-five percent are married couples, had been in their home for six years and moved a median distance of 18 miles. Their home was on the market for seven weeks, up from six weeks in the 2006 survey; 89 percent were satisfied with the selling process.

The typical seller sold their home for 97 percent of the listing price, and 55 percent reported they had remodeled or made improvements within three months before placing it on the market, spending nearly $3,000 on the project.

Most sellers expect an agent to market the home, with 90 percent of sellers reporting their home was placed on a MLS and 88 percent saying their home was listed on the Internet; eight in 10 had yard signs.

Eight in 10 sellers, using all kinds of brokerage services, said their agent reviewed sales contracts and purchase offers, managed paperwork and contracts, negotiated with buyers and scheduled showings. Three-quarters worked with their agent in determining the asking price, and said their agents coordinated home inspections and appraisals.

The level of for-sale-by-owner transactions remains at a record-low market share of 12 percent, the same as in 2006. The level of FSBOs has declined since reaching a cyclical peak of 18 percent in 1997.

Four out of 10 FSBO properties were not placed on the open market – 39 percent were “closely held” between parties who knew each other in advance, such as family or acquaintances.

Factoring out properties that were not placed on the open market, the actual number of FSBOs is 7 percent – the rest are unrepresented sellers in private transactions. This is down from 10 percent sold on the open market in 2004.

The median home price for sellers who used an agent was $240,000 vs. $180,000 for a home sold directly by an owner, but there were significant differences between the two. Unassisted sellers were more likely to be in a small town or rural area, the home was more likely to be a mobile or manufactured home, and the owner’s income was lower than that of sellers using agents – suggesting homes sold without professional assistance may be worth less than homes in agent-assisted transactions, or that sellers of more expensive homes choose to seek professional assistance.

The median price for transactions between parties that knew each other in advance was noticeably lower than those sold on the open market. The median price of an open-market FSBO was $208,000 vs. $142,400 for closely held transactions.

The most difficult tasks reported by unrepresented sellers are understanding and performing the paperwork, preparing the home for sale and getting the right price.

NAR mailed an eight-page questionnaire in August 2007 to a national sample of 150,000 home buyers and sellers who purchased their homes between July 2006 and June 2007, according to county records. It generated 9,966 usable responses; the adjusted response rate was 6.9 percent. All information is characteristic of the 12-month period ending in June 2007 with the exception of income data, which are for 2006. Due to rounding and omissions for space, percentage distributions for some findings may not add up to 100 percent.

The 2007 National Association of Realtors® Profile of Home Buyers and Sellers can be ordered by calling 800/874-6500, or online at www.realtor.org/newresearch. The cost is $50 for NAR members and $125 for non-members.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.

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Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section. Statistical data, charts and surveys also may be found by clicking on Research.

Visit my web site for additional NJ services and support: LawrenceYerkes.com

and visit Besthomes-NJ.com to find the latest New Jersey Real Estate property listings (Residential, Commercial, Multi-Family, Farm, Land).

Monday, November 12, 2007

How To Excape A Mortgage Mess

Stress in the nation's mortgage industry is putting a financial squeeze on home buyers and homeowners alike. Buyers are finding it harder to obtain home loans as lenders tighten their credit standards or even go out of business. (Source: MSN)

Tips for mortgage shoppers . . .

Sunday, November 11, 2007

Celebrate: Veterans Day 2007

Veterans Day originated as “Armistice Day” on Nov. 11, 1919, the first anniversary of the end of World War I. Congress passed a resolution in 1926 for an annual observance, and Nov. 11 became a national holiday beginning in 1938. President Dwight D. Eisenhower signed legislation in 1954 to change the name to Veterans Day as a way to honor those who served in all American wars. The day has evolved into also honoring living military veterans with parades and speeches across the nation. A national ceremony takes place at the Tomb of the Unknowns at Arlington National Cemetery. (Source: Census Bureau)

We salute all our veterans you have sacrificed to protect us and our freedoms!

Census Bureau - Facts For Features: Veterans Day - Interesting statics related to veterans.

See myprior year articles with additional Veterans Day resource links: 2006, 2005.

Visit my web site for additional services and support: http://www.LawrenceYerkes.com

and visit Besthomes-NJ.com to find the latest New Jersey Real Estate property listings (Residential, Commercial, Multi-Family, Farm, Land).

Saturday, November 10, 2007

Pinelands Commission To Hold Municipal Meetings

The Pinelands Commission is holding a series of meetings to inform Pinelands area residents and officials about the impact of septic systems on water quality, property value and public health. Each of the meetings below will take place at 7:00 p.m.:

Nov. 28 - Upper Township, municipal building
Nov. 29 - Buena Vista Township, municipal building
Nov. 30 - Barnegat Township, municipal building
Dec. 5 - Franklin Township, community center
Dec. 6 - Tabernacle Township, municipal building
Dec. 10 - Winslow Township, municipal building
Dec. 11 - Pemberton Township, municipal building
Dec. 12 - Jackson Township, library

For information and directions to the venues, e-mail wastewater@njpines.state.nj.gov. At the conclusion of the meeting project, the Commission plans to release a guide on the Best Management Practices, including information on the Department of Environmental Protection septic system management requirements.

(Source: NJAR)

Truth in Renting” Guide Now Online

The ninth edition of the “Truth in Renting” guide is now available online through the Department of Community Affairs, Division of Codes and Standards. The guide, which is now available at no cost, includes an outline of the various laws and responsibilities that apply to tenants and landlords in New Jersey. Landlords are responsible for disseminating the booklet to tenants upon entering into a lease. (Source: NJAR)

Visit my web site for additional services and support: LawrenceYerkes.com

and visit Besthomes-NJ.com to find the latest New Jersey Real Estate property listings (Residential, Commercial, Multi-Family, Farm, Land).

Copyright 2007 by Timon, Inc. All Rights Reserved.

NJ DEP Adopts Flood Hazard Rules

The New Jersey Department of Environmental Protection (DEP) adopted the Flood Hazard Area Control Act rules proposed in October 2006.

The rule adoption was published in the November 5, 2007 New Jersey Register.

The rules clarify and reorganize existing regulations of the Flood Hazard Area Control Act and affect development near flood plains and other regulated waters.

View an unofficial copy (PDF) of the adopted Flood Hazard rules. (Source: NJAR)

Thursday, November 08, 2007

More Banks Have Tightened Lending Standards on Home Mortgages

More banks have tightened lending standards on home mortgages, the Federal Reserve said Monday in the latest sign of fallout from a spreading credit crisis. (Source: CNNMoney.com)

More Information . . .

Tuesday, November 06, 2007

Avoiding Foreclosures

Many markets are seeing a rise in delinquencies and foreclosures. If you've missed payments on your mortgage or are worried about future payments, it's easy to feel like you're all on your own. With your house on the line, you may be tempted to hide and merely hope for the best. However, if you face problems quickly and directly you're much more likely to avoid foreclosure.
It's important to remember that foreclosure is also an undesirable endgame for lenders. Many mortgage companies would rather attempt to work with a delinquent borrower before resorting to the expense and hassle of foreclosure.

Identify the Timeframe of Your Financial Issues

Generally speaking, mortgage service companies provide one set of solutions for borrowers who have short term troubles and another set for those whose problems are more long term. Before you begin negotiating with the mortgage company, you should know which category your situation falls into.

For example, if you've been recently confronted by a costly auto repair, you may be in a crunch trying to meet a mortgage payment or two. Because the repair bill is a one-time expense, the mortgage issue is short term.

On the other hand, a change in employment or earning ability can be a longer-term problem, especially if your financial outlook is unknown.

Respond to Contact

Ignoring a problem rarely makes it go away. Unfortunately, in far too many cases borrowers fail to respond to their mortgage service company (the firm that collects payments and sends notices when payments have not been received). The first step in showing good faith is responding to the calls or letters regarding your delinquency. Many service companies have a foreclosure prevention department that is trained to empathize with troubled borrowers. So make initial contact, but be careful not to agree to any new terms hastily.

Get Outside Assistance

The mortgage company may offer up several different solutions initially, but the last thing you want to do is to agree to something new that may put you into even more of a bind down the road. Before agreeing to any new terms, you should describe your situation to an outside expert. Seek outside help in the form of a real estate attorney, credit counselor or a housing counseling agency.

Document, Document, Document

The most caring mortgage lender in the world still sees things largely in black and white, so it's important to gather as much information as possible. Begin by collecting all correspondence from the mortgage service company. Keep envelopes when possible, as sometimes the postmark of critical notices can affect a borrower's eligibility for relief.

Document Income - Collect as much documentation displaying your income as possible. Lenders typically want to see at least one month of income, but get together as many consecutive recent pay stubs as possible. Find your last two to three tax returns and W2 forms. Also include three to six months of bank statements.

Document Expenses - Assemble all bills, paid or unpaid, from the time you began to fall behind in payments until now. Include utilities, credit card bills and auto payments. It's particularly important to show any of the reasons that you may have fallen behind in the first place (such as unexpected repair or medical bills).

The documents will likely help tell the story of why you fell behind on your mortgage payments. Now it's up to you to fill in the blanks with the human element. Write down all of the circumstances that lead to your current situation, and you'll be better prepared to explain yourself to the powers that be.

Possible Solutions

Depending on the number of payments missed, the size of the loan and the financial out look of the borrower, the mortgage company has a variety of potential solutions that it may offer.
Repayment Plans - If you haven't missed many payments, the mortgage provider may work with you to form a repayment plan that allows you to pay off the past due amount bit by bit (in addition to your regular mortgage payments).

Reinstatement - Should you be experiencing a temporary shortfall of cash, your lender may provide an extended period of time to pay of the past due amount. In most cases you will still be responsible for any late fees or penalties you've already incurred.

Forbearance - If you need temporary relief, the lender may offer a forbearance plan. A forbearance plan suspends or reduces your payments for a set period of time, with the unpaid to be paid later in either pieces or one lump sum.

Loan Modification - Longer term financial problems that affect overall income are sometimes solved by loan modification. Any term of a mortgage may be modified by a lender: the rate, the payoff date, and even the total amount owed. A lender may modify the terms of the mortgage if you cannot payments under the current agreement, but the lender is reasonably sure that you will be able to consistently make future payments under new terms. Modifications are extreme measures and are used sparingly, but are an option for lenders who conclude that foreclosure would be more costly.

Be Relentless, but Realistic

Most mortgage service companies are essentially broken into two branches. The first tier is the collections department, whose job is to track down delinquent borrowers and recover back payments. The second division is the foreclosure prevention department (sometimes called loss mitigation, delinquency customer service or loan resolution). This second tier is responsible for making the tough decisions.

Getting past the collections agents and to the loss mitigation department is critical. The help of an attorney can be crucial in gaining you such access. When you do get through to a loss mitigation agent, tell your story and answer all questions about your income and expenses, and request an application for forbearance or modification.

While the hope is that the lender will offer mitigation, you should be prepared for the worst case scenario that you will have to move out. However, if an the lender does over loan resolution, they likely will push you to make a quick decision. Instead take if they offer take time to consider it with an advisor before agreeing to anything.

The article is taken from one of our recent Newsletters that was e-mailed to all registered subscribers, via our RE/MAX of New Jersey web site.