About Franklin Township's Somerset

Heare are four great financial reasons why you should not wait before taking the plunge into homeownership.

Interest Rates are Increasing

Interest rates have increased almost 3/4 of a point in the last six months. Most experts expect rates to continue to increase through the year. Interest rates along with price determine the overall cost of a home. Even with prices softening, if interest rates rise, it may be less expensive to buy now rather than wait.

The 30-Year Mortgage May Disappear

There has been much debate regarding government's role in providing support for homeownership. There are several experts who believe If Fannie Mae and Freddie Mac's roles are eliminated, or even limited, it may be the end to the 30-year mortgage. This concern is addressed in MSN Real Estate's Is it curtains for the 30-year mortgage?

QRM Requirements Could Be Much More Stringent

Here are proposed changes to the requirements for a ‘qualified residential mortgage':

• Certain mortgage types would be eliminated
• You would need to put a minimum of 20% down
• You would need a minimum 690 FICO score
• The ratios of income to both the mortgage payment and overall debt would become much more conservative (28% and 36%)

There would be loans available to purchasers who don't qualify under the new rules. However, they will probably be more expensive to the buyer (both in rate and costs).

Rents Are Expected to Increase

The supply of available rentalsis decreasing and the demand is increasing. That will lead to an increase in rental costs throughout the year. The Wall Street Journal this week quoted a report by Reis, Inc:

"Expect vacancies to continue declining, and rents rising through the rest of 2011 at an even faster pace."

Bottom Line

You may be waiting on the sidelines to see if prices will continue to depreciate before you purchase a home. The mortgage expense is a major piece in the overall financial picture of homeownership. Make sure you consider it when timing your decision.

Reposted with permisssion: The KCM Crew

What happened in our marketplace - March

According to the Garden State MLS, the month of March, 2011 ended with 30 Franklin Township single family residences sold. Franklin Township sale prices ranged between $134,000 and $619,900. The average** selling price for the month was $262,678. Average days on the market (DOM) for March was 120. The list price to sold price ratio averaged 95%. The month ended with 438 active listings on the market ranging in price from $95,000 to $1,250,000. The month of January ended with 94 Franklin Township residential properties under contract.

That's what is happening in the Somerset, NJ marketplace now, April 11, 2011.

If you have a question about a specific property in town, or housing stats for surrounding areas, please don't hesitate to contact me. **An average price is calculated by adding up all the values in a distribution and then dividing the sum by the total number of values contained in that distribution. To find a median value, one takes all of the values in the distribution, sorts in ascending order, lines them up and finds the middle value.

Source: Garden State MLS, L.L.C. **Info. deemed RELIABLE but not GUARANTEED - ALL Room Sizes are Approx.** The links will expire 60 days from 4/11/011.

The communities of Somerset and Middlesex counties will get a taste of Caribbean culture on June 27 when New Jersey Caribbean Festival 2009 will offer the spice-infused cuisine, diverse music rhythms and vibrant art of the islands, commonly called the West Indies.

Organized by the Jamaica Organization of New Jersey, the Somerset County Cultural Diversity Coalition and the Hamilton Street Business and Community Corporation, the street festival will be held from 11 a.m. to 6 p.m. at 720 Hamilton St., in the business district section of Franklin Township in Somerset County, N.J.

The Caribbean festival will be rich with familiar cultural expressions, such as foods embellished with curry and jerk seasonings, steel bands, cultural dances and performances by Caribbean artists. The event will also include vendors of all cultures, illustrating the multicultural tapestry of the United States, organizers said.

I just completed the core course requirement for my NAR GREEN certification and it was unbelievably enlightening. The course encourages the real estate professional to become an advocate for Green principles in the design and use of homes and to become a positive force for creating sustainable communities. The next step is to take the Elective follow up course in April that specifically targets a field of interest and/or expertise - residential, commercial or property management.

I am very excited about this initiative and plan to ride this GREEN wave all the way in the residential field for the benefit of future generations.

Gloria Laughton Allston, REALTOR, SRES

BURGDORFF ERA REALTORS, PRINCETON, NJ

Somerset, NJ market analysis for October 2008

Compared to September 2008

October: September:

Active Listings = 507 554

Average LP = $ 380,315 $ 406,988

New Listings = 71 107

Average LP = $ 345,108 $ 391,593

Under Contract= 50 47

Average LP = $ 327,059 $ 343,984

Sold Listings = 43 54

Average SP = $ 339,517 $ 325,019

Average DOM = 86 82

Average SP/LP = 97% 95%

*Statistics based on information from Garden State MLS, L.L.C. Deemed reliable but not guaranteed.