Basking Ridge, NJ

This week it's all about sales. They're up in all four major regions of the country, and we're even seeing bidding wars breaking in some scattered markets, according to the latest survey from the National Association of Realtors.

NJ Estates Real Estate Group Paul Stillwaggon

December 2009 LINKING THE LATEST TECHNOLOGY TO OLD FASHIONED SERVICE

Copyright © 2009 Realty Times All Rights Reserved.

Sales of single family homes, townhouses, condos and co-ops surged by a little over 10 percent in October, and were 24 percent above where they were a year before.

Closed transactions rose by nearly 12 percent in the Northeast, 14. 4 percent in the Midwest, 12.7 percent in the South and by 1.6 percent in the West.

Why the big jump in activity? The number one reason, according to Dr. Lawrence Yun chief economist for the National Association of Realtors, was that first time buyers rushed to wrap up deals before the scheduled November 30th original expiration date of the $8,000 federal tax credit

That program has now been extended through next June 30th.

Another factor: The near record-breaking affordability of housing - as measured by the prices of homes in local markets around the U.S. compared with household incomes and monthly payments at current mortgage interest rates.

The affordability equation is now at its most favorable point for buyers since 1970. Interest rates for 30-year fixed loans have been hovering around five percent for weeks -- and recently dropped below that into the upper four percent range. A year ago, by comparison, the average 30-year rate was 6.2 percent.

House prices meanwhile have remained well below where they were a year ago -- down by 7 percent to a median price of about $173,000. In the southwestern states, Florida and the suburbs of Washington D.C., low prices, especially for entry-level houses, are triggering multiple-bid situations -- something that hasn't been seen since the heady days of the housing boom in 2004 and 2005.

The Realtors' Yun warns, though, that encouraging though this may appear, the market is not static and some of these dynamics could change in the months ahead.

Prices are flattening out and could even move up surprisingly in some areas in the coming months, if the economy cooperates. Interest rates could rise next Spring if the Federal Reserve phases out its program of heavy-duty investing in mortgage securities, as it says it plans to do.

In the meantime, inventory levels of unsold houses continue to drop ... and are now down to just a seven month supply nationwide on average. Since a six month supply is considered to be a balanced market, favoring neither sellers nor buyers, it looks like we're not too far off.


Written by Kenneth R. Harney
December 1, 2009

Linking the latest technology to old fashion service. Our seven realtor's commitment, pride and extensive specialized knowledge has earned us a strong position in the market and we invite you to call NJ Estates Real Estate Group when buying or selling a home, @ (908) 561-5492. -- Contact Us

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« The Tax Credit and Multi-family homes

11/21/2009 - 11/27/2009

I am back from a long weekend spent with family; hoping that my readers have enjoyed their long weekend as much as I did! I think that most buyers were also spending time with family - as there were only TWO sales last week here in Basking Ridge:

29 Sunset Lane, Single Family home, LP $459,000
57 Huntington Road, Single Family home - the Hills, LP $719,000

There are an additional 12 properties that are working through attorney review which means they have accepted offers and lawyers are working through the contract details. I guess not everyone was only thinking Turkey last week!

Please contact me if you would like more information about any of these Basking Ridge homes or visit my Basking Ridge real estate site for more information on what has sold by month over the past year.

New to the Basking Ridge market are the following 3 properties:

107 Culberson Road, Single Family home, estate sale, $459,000
18 Mayflower Drive, Townhouse, The Hamiltons, relocation, $518,000
10 Birch Drive, Single Family home, $849,000

As of this evening there a total of 155 listings showing active in Basking Ridge in the MLS. With 19 going under contract in the last 30 days, Basking Ridge market absorption is 8.2 months. Again, a normal fluctuation.

Visit my Basking Ridge website to search homes for sale in Basking Ridge and surrounding areas.

If you are thinking of moving, I can provide a free market analysis of your home's value in today's market.

The single most important skill for a real estate agent is sales ability. No matter where you are in your real estate career, decide right now to master the skills of selling in order to fuel your success.

It's hard to believe, but it's true, that more than 95% of agents lack top-level real estate sales skills. The reason I know this is because I coach some of the best and highest-earning agents in the world, and even they believe their sales skills can use improvement. The difference between them and other agents is that they realize that sales skills are vital to success and they continuously seek excellence in this area.

To follow their example, make it your priority to develop and constantly improve your sales skills, especially in these areas:

Develop sales skills to secure appointments.

Develop sales skills to persuade expired and for-sale-by-owner listings to move their properties to your business. This lucrative and largely untouched field.

Develop sales skills to make persuasive presentations that result in positive buying decisions. You can do this in every step from prequalifying prospects to planning your presentation, perfecting your skills, addressing and overcoming objections, and ending with a logical and successful close.

According to the National Association of Realtors, over half of current real estate agents have been in the business less than three years. That means more than one out of two of today's agents (probably including you) have never experienced a marketplace where homes sat on the market for 60, 90, or 120 days, where agents faced stiff competition to move listings, and where it took real work to find and create client leads.

We are now no longer in the robust market conditions we had experienced recently, where leads were abundant and relatively easy to attract, especially buyer leads. So when the market slowed, as it inevitably would, real estate success becomes less automatic. Only great sales skills guarantee that you - instead of some other agent - will win clients no matter the market conditions. The best agents make more money in a challenging market than in a robust market.

Regardless of economics, every market contains real estate buyers and sellers. No matter how slow the economy, people need or want to change homes. Babies are born. Managers get transferred. Couples get married. People divorce. And real estate opportunities arise for those with the best sales skills.
The way to build immunity to shifting market conditions is to arm yourself with skills in prospecting, lead follow-up, presentations, objection handling, and closing.

Paul Stillwaggon, For All Your Real Estate Needs Contact New Jersey Estates Real Estate Group E-mail: njestates@gmail.com Web: http://www.newjerseyestates.net 908-561-5492 (Paul S) 908-310-1358 (Cell)

NJ Estates Real Estate Group Weichert Realtors 908-561-5492 55 Stirling Road, Watchung, N.J. 07069

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Just like there are many types of buyers - from investors to first timers - there are also many different types of homes available for purchase. Certain buyers choose a multi-family home so they can earn income renting out the second unit or if they want to live close to a relative, but not share a living space.

Because the law states that a buyer must use their new home as a principal residence in order to claim the tax credit, those considering a two-family dwelling may wonder if they are eligible. According to the Internal Revenue Service, these buyers may qualify for the tax credit for the unit they use as their principal residence, but cannot claim the credit based on the full purchase price.

To figure out the amount of the tax credit that can be claimed, a buyer must divide the purchase price of the home between the two units. The allowable tax credit would then be 10 percent of the portion of the total purchase price that was allocated to the unit used as a principal residence by the buyer. The maximum credit amounts of $8,000 for first-time buyers and $6,500 for repeat buyers still apply.

Click here for more information about the tax credit. Or contact me directly for additional questions.

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This study examines the traditional compensation model for real estate brokers under which both the listing and buyer brokers are paid by the seller based on a percentage of the property sales price.

This study examines the traditional compensation model for real estate brokers under which both the listing and buyer brokers are paid by the seller based on a percentage of the property sales price.

Read more: http://ideas.repec.org/a/kap/jrefec/v35y2007i1p7-22.html

Paul Stillwaggon, For All Your Real Estate Needs Contact New Jersey Estates Real Estate Group E-mail: njestates@gmail.com Web: http://www.newjerseyestates.net 908-561-5492 (Paul S) 908-310-1358 (Cell)

NJ Estates Real Estate Group Weichert Realtors 908-561-5492 55 Stirling Road, Watchung, N.J. 07069

Equal Housing Opportunity

Current Listings Info
Luxury New Homes
Custom Build A New Home
Land & Building Lots
New Jersey Estates
All New Jersey Homes
Real Estate Listings Blogs
Real Estate Info Blogs
Open Houses & Directions
Our Testimonial Letters
Going Green/ Complete Info