Thomas McCormack

Yes Virginia, it is good news.

It was announced Tuesday by NAR (National Association of Realtors) that sales of existing homes increased again in May, the first back-to-back monthly gain since September 2005.

Why?

Just a guess, but certainly increased affordability due to lower prices and the federal first-time buyer tax credit have been evident in our market.

According to NAR, nationally, existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 2.4 percent but remained 3.6 percent below the 4.95 million-unit pace in May 2008. Regionally, existing-home sales in the Northeast rose 3.9 percent to an annual level of 800,000 in May, but are 10.1 percent below a year ago. The median price in the Northeast was $243,600, which is 12.5 percent below May 2008.

Locally, Monmouth County single-family home sales rose 23% in May, but is down 18% from last year. The median price for a single-family home Monmouth County was $387,500, down 14% from May 2008.

But with the glimmer of hopeful news came some negative news as well regarding the housing recovery. Due to changes in lender requirements, appraisals are more and more frequently souring the deal. Lawrence Yun, NAR chief economist, said the appraisal problem is serious. “Lenders are using appraisers who may not be familiar with a neighborhood, or who compare traditional homes with distressed and discounted sales,” he said. “In the past month, stories of appraisal problems have been snowballing from across the country with many contracts falling through at the last moment. There is danger of a delayed housing market recovery and a further rise in foreclosures if the appraisal problems are not quickly corrected.” I myself recently heard of a transaction where the appraiser came from Delaware... not exactly someone familiar with the local market.

So... let's hope the encouraging news is a positive signs of things to come. The increase was less than what was expected so it is not surprising that it was less than enthusiastically received. Nevertheless, in my opinion, good news is still good news. Let's see what happens next month!

This Old House has named Atlantic Hihglands as New Jersey's "Best Old House Neighborhood" in its second annual competition.

I am proud to say I was instrumental in identifying Atlantic Highlands for the magazine having nominated the town after having been informed by the folks at Preservation Directory of the upcoming contest. The editors of This Old House included Atlantic Highlands in its subcategories that highlighted the best of the Northeast, Waterfront communities, Bedroom communities, and of particular interest to Sportsmen, Cottage and Bungalow enthusiasts, Families, and Retirees.

"Unique, tight-knit neighborhoods are precisely what we looked for in selecting the winners of our second annual Best Old House Neighborhoods contest — places that might not be on your radar but deserve to be," according to Keith Pandolfi, editor with This Old House Online. "These communities are the best of the best places to buy an old house."

Part of the submission process was to describe the town, it's character and history, architectural styles, home values and also the community spirit that supports the preservation of historic homes. The Atlantic Highlands Historical Society offers a wealth of information regarding the special treasures that can be found in the historic residences in town and I was able to supplement this with other historical and MLS data.

After the town passed the initial screening process, I was asked to provide additional photos of local historic homes (they didn't have to be available for sale) and provide some additional information to the editors.

I was very pleased when they told me they had chosen Atlantic Highlands as New Jersey's "Best Old House Neighborhood." I've long been a cheerleader for the town ever since moving to the area ten years ago. There's wonderful Victorian architecture found in both large & small houses, as well other historic styles, and there's a great downtown area with shops, fine dining, a movie theater and the marina.

It's because of towns like Atlantic Highlands that inspired me to help create the "Legacy Homes" division at Resources Real Estate.

Atlantic Highlands seemed an appropriate choice for the contest also because of the local community spirit that seeks to preserve and promote the historical character of the town. The historical society's efforts, such as this weekend's Historic Home Tour, and groups such as the online "Older Homes Group" which helps homeowners connect with available resources of particular interest to those with historic homes.

Currently available historic homes in our area ~ Victorian, Craftsman, Colonials, and more. Some fixer uppers, some fixed up. If you're looking for a more comprehensive list of available historic homes throughout Monmouth County, please contact me.

Truly, one of the best features of Monmouth County is its park system. With over 30 parks, gardens, ocean beaches, forests, golf courses, historic sites, recreation areas and marine habitats, it's comprised of over 14,500 acres and each year it offers over 4000 recreation programs with activities suitable for any age or ability.

One of my personal faves (in part because I can walk to it from my home) is Hartshorne Woods, almost 800 acres of trails for hiking, biking, mountain biking, horseback riding or walking. I've heard that it is regarded as one of the best mountain biking parks on the east coast.

It is located along the river so there are some wonderful views of the Navesink & Shrewsbury rivers as well as the ocean. Best of all, you feel like you are so far away from everything its a great way to restore your sanity when you need a break from everything. Accesible from Highlands as well as the Navesink section of Middletown, its a local favorite for people from the entire surrounding area.

For lots more information about programs, activities and all the park system's properties visit their website at http://www.monmouthcountyparks.com/

As a former long-time city dweller I resisted purchasing a home for many years, instead renting in various parts of Manhattan and Brooklyn despite many entreaties by friends and family such as "Why wouldn't you buy instead of throwing your money away on rent?" I told myself and them that I didn't want to be "tied down" to any one place, I wanted mobility... and then remained in NYC for 15 years.

Of course, had I purchased a home during that time, even a small co-op apartment, I likely would have had substantial equity to help me make my eventual move out of New York less challenging financially. But one of the main reasons I never bought was the memory of watching friends and colleagues in the late '80's who had great difficulty selling their apartments when job, love or life in general called them elsewhere. Many of these people struggled with trying to "unload" their first home and it sometimes interfered with their career plans and relocation.

During subsequent years I ignored the real estate market and preferred to fixate on my memory of the "bad investment choices" made by my friends. Although the market changed my opinion of it did not.

When I finally decided it was time for me to leave the Big Apple it was 1999 and I was certain of only two things: I wanted to live near the water, preferably the ocean, and have a space to garden. I was now in my 30's and not feeling the need to be so mobile anymore. I wanted a lifestyle and some creature comforts that apartment living was unable to provide. It was a challenge to leave my familiar surroundings and I was entirely unfamiliar with the process, requirements and frustrations of buying a home but I did it.

I have looked back many times over the past ten years, very grateful for having bought a home in Highlands, NJ, with my partner when we did. I am quite sure that had I waited, perhaps only a year or two, I probably would not have moved because of the drastic shift in house prices. I'd probably still be in a rental apartment in Prospect Heights instead of living in our much beloved 1917 Craftsman ("Home Sweet Money Pit") that's just down the hill from the Twin Lights lighthouse and a short walk to the Atlantic Ocean. Although I sometimes miss the energy and convenience of city life, I know I would not trade it for the enjoyment of hosting dinner parties on our front porch on a summer night, or dancing with friends at the summer beach concerts at Sandy Hook. It's a different life, to be sure, but a wonderful one.

So, what's my point? If the above description at all sounds familiar to your situation, I strongly recommend looking for your first home starting now. Why? Let me count the ways....

1. Affordability: Recently I saw a report that said affordability on a national level was at 66% which means that 66% of the people can afford a house at the median-price for their area. They give that stat an A+ rating! As the affordability rate rises, so will demand which means fewer homes to choose from and prices on the rise.
2. Tax Incentives: First home buyer tax credit for a home purchased in 2009 is worth $8000 and does not have to be paid back (unlike the $7500 rebate for homes purchase in 2008).
3. Low Mortgage Interest Rates: rates are great... below 5.5% and sometimes even below 5% with the right loan program.
4. Low Downpayment: FHA loans are requiring as little as 3.5% down!
5. Inventory: Lots to choose from here in the resale inventory as well as short sales and foreclosures.
6. Negotiability: Many homesellers are fatigued. They want to be done with the process of selling and move on with their lives. They also want to take advantage of the good deals out there but cannot because they have to sell first. While many are not looking to fire-sale it, they are willing to listen to a reasonable offer and probably have already reduced their price or priced it according to the market.

It's time! Let me know if you would like to start your search... I'd be glad to help!

For me, summer doesn't truly begin until the beach concerts at Sandy Hook start. It's truly one of my favorite summertime activities... enjoying a picnic dinner & a bottle of wine on the sand with good friends.... the sound of the surf behind you, the sounds of a full band onstage in front.... dancing if the mood strikes me... Great people watching too! Bring a blanket or low beach chairs, a cooler, some food and you're all set! And be sure to take part in the 50/50 raffle which raises funds for the Sandy Hook Foundation (the winner's share is usually several thousand dollars!) See you there!

Sandy Hook Beach Concerts 2009
Wednesday Nights 6:00 P.M. - Beach E

June 24 Jobonanno & The Godsons of Soul (Rock & Roll) [CANCELLED DUE TO RAIN!]

July 1 Tim McLoone & The Shirleys (Rock/Americana)
July 8 BethAnne Clayton Band (Country Rock)
July 15 Brian Kirk & The Jirks (Rock & Roll)
July 22 Philadelphia Funk Authority (R & B)
July 29 Pat Guadagno & the Candle Brothers (Folk Rock)
August 5 Tim McLoone & The Shirleys (Rock/Americana)
August 12 The Robert Murdock Band (British Invasion/60's)
August 19 The Jazz Lobsters Big Band (Swing)

Brought to you by the Sandy Hook Foundation

WWW.SANDYHOOKFOUNDATIONNJ.ORG

In case of rain, decision to cancel made after 2:00 p.m. on day of concert
Call 732-291-7733 for recording or check website.