Archive for October, 2011

There were two contract sales in Bedminster this week. No closings, and one new listing – a $4.3M dollar property. Bedminster Real Estate has been somewhat slow lately – I bet there are some really good deals to be had there. Take some time today to search Bedminster homes for sale.

It really is a good time to buy a house.  The signs are there: record-low interest rates and reasonably priced homes. This week, the Wall Street Journal presents two factors that make now “an excellent time to buy a house.” First, the ratio of home prices to yearly rents is close to its pre-bubble average. Second, when mortgage rates are considered, houses are the most affordable they have been in decades.

The article goes on to explain that whether or not buying is a better deal than renting depends on the relationship between prices and rents, the cost of financing and other factors. The good news is that the numbers all seem to be heading in the right direction.

According to Moody’s Analytics, the nationwide ratio of home prices to yearly rents is 11.3, down from 18.5 at the peak of the bubble. With all things being equal, a lower ratio means buying is preferable to renting. Even though the price/rent ratio is not as low as it has been, house payments are more affordable than they have been in decades because mortgage interest rates are so low.

And, despite public opinions otherwise, mortgage money is available according to information in the article attributed to Stan Humphries, chief economist at Zillow, a home and real estate consumer website.

The article closes with this advice: “When prices are low, loans are cheap and plump investment yields are scarce, buyers should jump.”

Week of 10/9/2011

There were two contract sales last week – a two bedroom townhouse in the Fieldstone section featuring a one car garage and Brazilian cherry floors and a two bedroom townhouse in the Four Oaks section featuring a two car garage and an updated kitchen.  Both are scheduled to close before the end of the year.  I’m happy also to report that market absorption is under 8 months in Bedminster.

There are less than six weeks left in the fall market – things typically start to slow down after Thanksgiving.  If you are considering a move into Bedminster or the surrouding areas we can help!  Click here for information on what is currently available in Bedminster.

Bedminster Real Estate, Basking Ridge Real Estate

Of course, the primary factor to consider when making a decision is the cost of the repair versus the cost of replacing the appliance, factoring in such things as tax, installation, and removal and disposal of the broken unit. According to Angie’s List, a national consumer ratings company, these things should also be considered:

• Age/History – Older appliances may require ongoing service, which could cost more over time than simply buying something new. On the other hand, if you have not had trouble with the appliance in the past, it might be worth fixing it.
• Energy Efficiency – New appliances could save you considerably when it comes to energy costs. Determine if the energy savings will offset the cost of a new appliance. In addition, tax credits may be available on energy-efficient units.
• Features/Performance – As technology advances, appliances have more and more features and can do more things. Putting cost aside, purchasing a new appliance might be the right choice simply because it improves your quality of life.

If the decision is to purchase a new appliance, remember that quality products tend to last longer, and that proper care will help prevent problems and reduce the need for repairs.

Contact me if you are considering a move into or out of Bedminster, NJ; I am happy to help you determine the value of your Bedminster home, or you can search what’s for sale in Bedminster (and many other areas as well!)

This week’s featured open houses are at 11 Archgate Road in Basking Ridge and 100 Old Army Road in Bernardsville.  Both hosted open on Sunday, October 16 starting at 1:00 pm. 

100 Old Army Road, Bernardsville, NJ – open Sunday, 1:00-4:00 pm

11 Archgate Road, Baking Ridge, NJ – open Sunday, 1:00-5:00 pm

It’s a great time to buy – interest rates have never been lower.  Come preview these homes!

Bedminster Real Estate

My webmaster has been encouraging me to add video to my blog posts. I created a test video this morning – a walking tour around my office. I simply can’t post it. It is very shaky and simply a very bad first attempt. But I can’t allow myself a complete ZERO for the assignment, so I created this instead:

I am hopeful that this will earn me at least half credit for the day!

“Today, Freddie Mac announced that the average rate on a 30-year fixed mortgage fell below 4 percent this week for the first time ever, to 3.94 percent.”

This all-time low rate represents an extraordinary opportunity for consumers, whether they are in the market to buy a home or not.

Homebuyers can purchase a home for less, sellers could see increased activity, and homeowners can refinance to lower their mortgage costs and free up money for other purposes.

Click here to Contact us or call me at 908-432-0318 to find out how to take advantage of these low rates to either buy or refinance!

Last night, I spent some time looking at Bridgewater market data for the month of September:  There were 62 new listings, 47 listings were price adjusted and there were 29 contract sales. There are currently 193 active listings (single family homes), there were 21 contract sales in the last 30 days and there are 10 properties with offers/contracts in attorney review.  That’s an absorption rate of 9 months (6.2 if we adjust for the attorney review properties and assume they were negotiated in the last 30 days).

I also narrowed it by price range – looking at listings and sales between $400,000 and $500,000.  There are 48 active listings and there were six sales in the last 30 days.  That’s an absorption rate of only 6 months.  19 of the listings in this price range are priced between $425,000 and $450,000 with six listings exactly at $499,000 and four exactly at $450,000.   Average days on market for these properties is about four months – they aren’t selling either….

I did this because I have a listing that is currently priced at $459,000 and I am trying to determine what to do next.  We have great open house traffic but we are not getting agent showings.  With absorption rates as low as six months; we should be getting more activity and I’m very disappointed in the lack of agent showings.  It’s only been two weeks since we adjusted the price – but we only have about six weeks left in the fall market

What would you do?

While the overall real estate market is not doing so great, the market here in Basking Ridge remains strong.  Sale prices may not be where we want them to be (as sellers and homeowners) but sales activity continues to remain steady with some properties attracting multiple bids and near-asking sale prices.  It’s a little hard these days to push the envelope on pricing – market value is going to become evident in the first few weeks that your house is listed and you and your agent will have only limited control over the final sale price.

What you can control is how the house shows.  I often tell prospective sellers to start packing.  Less is more, de-clutter and neutralize.  You are selling a house, not your home – to a buyer who is looking for a house which they can envision as their home.  You need to make it easy for them to do that.

Sharon Tara, a stager in NH wrote a great article for a real estate forum that I frequent.  She says that when preparing your house for sale, you should consider the “Perfect Crime”. Today’s buyers are like the detectives in those old time movies: leave them the smallest amount of evidence and they will find a way to use it against you!

She suggests that successfully selling your house requires leaving no evidence at the scene. Remove the DNA – your family photos, diplomas and degrees.  Clean up the fingerprints – medical equipment, medications, hobbies and collections.  Allow a prospective buyer to walk through your house and imagine it as their home.  I do not think you have to take away everything; it is important that your house be warm and inviting. But it should be presented in a way that is universally accepted as such: chocolate chip cookies or apple spices are much better aromas than last night’s garlic casserole!

Additionally, you should be prepared to flee the scene at a moment’s notice!  It is virtually impossible to keep your house in show shape 24 hours a day – but, of course, that is what today’s detectives expect (oops, I meant buyers).  I often tell people that we understand that people live here – and if you are feeding a toddler three meals a day it’s okay to leave the high chair in the kitchen. But it’s a good idea to keep a laundry basket or a plastic tote by the front door to hold the remnants of quick clean up so you can leave in a hurry if an agent calls to schedule a last minute showing.

The best way to ensure that your house will sell is to price it right and make sure it shows PERFECTLY.

Tim McLaughlin, VP Weichert Financial

http://twitter.com/TimMc86

•  The S&P/CaseShiller Home Price Indices showed a fourth consecutive month of increases for the 10 and 20 city composites, with both up 0.9% in July over June. ”With July’s data, we are seeing not only anticipated monthly increases, but some fairly broad improvement in the annual rates of change in home prices,” says David M. Blitzer, chairman of the index committee at S&P Indices. “Monthly price increases -were seen in 17 of the 20 cities. The exceptions were Las Vegas and Phoenix, where prices fell, while Denver was flat. The better news is that 14 of 20 cities and both composites saw their annual rates of change improve in July. 
• Fixed mortgage rates sank to record lows over the past week following the Federal Reserve’s decision to buy longer term Treasuries and reinvest proceeds from MBS investment payoffs back into those securities, according to Freddie Mac’s weekly survey. The 30 year Fixed rate mortgage averaged 4.01% with .86 points for the week ended Thursday, down from 4.09% with .79 points the previous week and 4.32% with .62 points last year. Rates on 15 year Fixed rate mortgages averaged 3.28% with .77 points, down from 3.29% with .71 points last week and 3.75% with .72 points a year earlier. Freddie Mac Chief Economist Frank Nothaft said interest rates for Adjustable rate mortgages, however, were nearly unchanged due to the Fed’s plans to sell $400 billion in short term Treasury securities and buy longer term notes and bonds. Shorter term securities serve as benchmarks for many Adjustable rate mortgages. 
• On another note…The top 4 reasons borrowers refinanced in 1H11, according to a JD Powers Survey:

1. Reduce monthly mortgage payment
2. Reduce term of the mortgage
3. Consolidate debt
4. Cash out refinance for various purposes