Silver Lining for Real Estate in '08

•Ø In his outlook for 2008, Laurence Yun, the chief economist for National Association of Realtors^®, sees a shift from greedy speculators to serious homeowners. 2008 will be a year of opportunity where there will be serious, healthy business. Furthermore, Yun predicted that the market returns to normal by 2009.

•Ø According to Yun, one of the biggest mistakes that reporters make is talking about national trends. Nationally, 2007 was the fifth best year ever on record. Home prices declined about 1.5 percent after a 50 percent run up in prices.

•Ø 2008 represents the best window that buyers will have to find excellent deals with excellent financing. Get the word out there. If they wait, prices and interest rates will be higher and the reluctant buyer may be forced out of the market.

-- "Positive News for Realtors in ‘08," by Bernice Ross, Inman News (registration required), Dec. 21, 2007.

Buyers: Don't Try to Time the Market

•Ø Assuming you can figure out the ideal time to buy - that is, when prices have hit not only hit a trough but are on the verge of rebounding - by the time you find the house you want, line up the financing and close the deal, the "best" time may have already passed.

•Ø Start looking around in different areas where you may be interested in living to get a sense of what the market is like and where it may be headed. The national housing market is really a collection of many local markets, and the prospects can vary considerably from one locale to the next, depending on such factors as how hot the market got, the local employment picture and the volume of inventory and potential foreclosures.

-- "Ask the Expert: Timing the Housing Market," by Walter Updegrave, CNNMoney.com, Dec. 27, 2007.

Foreign Investment in U.S. Real Estate

Sales of luxury homes have been strong and "with the value of the U.S. dollar low and real estate prices dropping, it isn't hard to imagine foreigners taking bigger positions in properties here as part of their overall portfolios. At the first blush of renewed energy, the real estate market will bounce back."

-- Thomas Kostigen of Marketwatch, "Spotting Market Bottoms in 2008, Strategies for Home Sellers," by Lauren Baier Kim, RealEstateJournal.com, Jan. 1, 2008.

Mortgage Rates Fall

The benchmark 30-year fixed-rate mortgage fell 17 basis points, to 6.14 percent, according to the Bankrate.com national survey of large lenders. The benchmark 15-year fixed-rate mortgage fell 21 basis points, to 5.76 percent. The benchmark 1-year adjustable-rate mortgage fell 6 basis points, to 6.1 percent. The 30-year jumbo, for mortgages of more than $417,000, fell 10 basis points, to 7.2 percent.

-- "Rates Fall on First Economic Report of 2008," by Holden Lewis, Bankrate.com, Jan. 3, 2008.

Going "Green" Adds Value to Homes

In a market where selling homes has recently become more challenging, features that make houses stand out from the pack provide an extra advantage against competitors. "Home buyers are looking for added value in every purchase they are making. They either want an awesome price or extras - such as those extras found in a more energy-efficient house."

-- Laura Zambratto, associate broker with Daniel Gale Sotheby's International Realty in Cold Spring Harbor, N.Y., "Builders, Brokers See Sales Edge in 'Green' Homes," by Laura Koss-Feder, Newsday, Dec. 28, 2007.

Interested in Learning More about the Summit, NJ Area - Click Below

Mortgage Applications Rise to Highest Level Since 2004

Applications for home mortgages jumped to their highest level in nearly four years as low interest rates led more homeowners to seek refinancing. The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity rose 7.5 percent to 1,054.9 in the week ended January 25; its highest level since March 2004.

-- "Mortgage Applications Near 4-year High," Reuters, Jan. 30, 2008.

Economic Stimulus Plan Will Help Housing

The economic stimulus plan announced by Congress and the Bush administration includes provisions that specifically address the mortgage crisis and make it easier for buyers to get or refinance mortgages - especially in high-cost regions like California. "[The raise in loan limits] could remove some of the inventory overhang and alter the buyer psychology a bit."

-- Mike Larson, real estate analyst, Weiss Research, "Stimulus Plan also Sparks Housing Market," by Les Christie, CNNMoney.com, Jan. 25, 2008.

Housing Market Showing Signs of Improvement

The drop in rates "has lit the fire in my business. I actually had an investor that called yesterday and she's interested in buying five homes."

-- Otha Greer, real estate agent, "Housing Market Gives Hints of a Thaw," by David Streitfeld, The New York Times (registration required), Jan. 26, 2008.

Housing Prices Up in Most States over Prior Year

The housing slowdown hadn't produced annual price declines in 31 states as of last November, according to the latest home-price index from First American CoreLogic.

States like California, Florida, Nevada and Arizona - where prices shot up during the housing boom - and 15 other states saw prices slide from November 2006 levels. But prices were up in a majority of states - at least when looking back at the previous 12 months.

-- "Annual Home-Price Growth Seen in 31 States," Inman News (subscription required),
Jan. 25, 2008.

Signs That it is Time to Buy

Market timing is an art, not a science, but you can improve your odds of buying wisely. Any change in condition will change others, so again -- be ready. Now is the time to buy a better house while prices are low, interest rates are low and inventory is still high.

-- "Realty Viewpoint: Six Signs it's Time for Home Buyers to Buy," by Blanche Evans, Realty Times, Jan. 22, 2008.

Two Reasons Why Home Sales will Increase in Q1 2008

Mortgage interest rates have already dropped over 3/4 of a point (as of Jan. 25), which is equivalent to about $150 or more in monthly payments for most conventional homeowners. According to Realty DataTrust, the average nationwide apartment rent increased 1.9% in 2007 and vacancies decreased. Higher rents, lower interest rates, and lower housing inventories will convince buyers it's time to act.

-- "Realty Viewpoint: Home Sales Will Jump After First Decline in Decades," by Blanche Evans, Realty Times, Jan. 25, 2008.

Interested in Learning More about the Summit, NJ Area - Click Below

Regional Update: Good News from Several Markets around the Nation

New Jersey

"I just don't feel the downturn touches these communities (in the suburbs of New York City) as much. People still need or want to move from Manhattan to these very desirable places, which have quick commutes. Yes, there are bargain hunters, even in Short Hills and Summit, N.J., and some are successful right now, but many are not."

-- Elaine Pruzon, real estate agent, "Buyers, Now Hear This," by Antoinette Martin, The News York Times (registration required), Jan. 20, 2008.

St. Louis
Even though houses in St. Charles County stayed on the market longer - 80 days in 2007 compared to 48 in 2002 - sales rose to 5,248 from 4,149. And although median house prices barely budged over the last year in St. Charles County, the average house price increased by nearly $55,000 over the last five years.

-- "Grim Housing Numbers Don't Depress Local Real Estate Professionals," by Riddhi Trivedi-St. Clair, St. Louis Post Dispatch, Jan. 25, 2008.

Maine

One reason Maine has been spared is that the worst of the real estate crisis has been confined to a handful of locations nationally. Another reason is that the statewide economy is in better shape than that of some other states. Maine's unemployment rate is 4.8 percent, on par with the national average and much healthier than in hard-hit locales.

-- "Maine Housing Market Bucks National Trend," by Tux Turkel, Morning Sentinel, Jan. 17, 2008.

Hawaii

While South Korean investors have been active in Hawaii real estate for some time, the market is expected to expand significantly over the next several years. A stronger Asian economy combined with a lessening of Korean bank restrictions and continued weakening of the U.S. dollar has already positively impacted the market. "Koreans are very interested in Hawaii. This is a safe destination with good weather and a great environment and it's not too far for them."

-- Anna Choi, real estate agent, "More Koreans Investing in Island Real Estate," by Allison Schaefers, Honolulu Star Tribune, Jan. 26, 2008.

Dear Active Rain Participants,

As a Summit, NJ Realtor I want to make members of our community and those interested in the Summit, NJ area to be aware of the following events scheduled for the month of February. Each of these events were announced on the city of Summit's website.

I have also attached the links to each of these events where applicable to help promote your participation. I hope you find this helpful. Also keep in mind that each of these events can also be found on the City of Summit's website.

I hope you find this calender of events to be helpful. If you have any questions about Summit, NJ real estate, feel free to contact me at anytime. I have included my contact information below.

Sincerely,

Michael Pennisi

(908) 656-3858

Michael-Pennisi@Burgdorff.com

For all of your real estate needs please visit:

www.MichaelPennisi.com

There was nothing average about Summit New Jersey Real Estate in 2007 based on the figures from the Garden State MLS:

In 2007, more homes were sold, at higher prices than the year before...but, it took a little longer:
Average Sale Price was up 11%
Number of Homes Listed was up 4%
Highest Price Home Sold was up by $2,000,000

What does this mean for buyers thinking of moving to Summit, New Jersey...now is the time to buy, with new lower interest rates on the horizon, 116 homes currently on the market, express trains to New York City on the Midtown Direct Line, a vibrant downtown, an excellent school system and homes retaining their value...you can't lose.

To view the complete study visit New Jersey Real Estate Wire.

To learn more about Summit, New Jersey and to search for Summit real estate visit Midtown Direct Homes