Hoboken, NJ

Consumers and businesses went on a big-ticket spending spree in July,sending home, car and equipment sales soaring by the largest amount in years.

The sales, detailed in two recent government reports confirmed a subtle but shift in confidence about the economy. New home sales jumped almost 10 percent from June, while orders for long-lasting goods like appliances, planes and computers rose nearly 5 percent in July, the third increase in the past four months.

It remains unclear whether the growth can be sustained. Though the increases in housing sales and manufacturing last month were dramatic, they came from extraordinarily low levels and were fueled by temporary government programs like Cash for Clunkers and tax credits for home sales.

Most economists now agree the recession that began in December 2007 has ended or is ending. Some say the economy is poised to grow strongly in the July-September quarter, but will probably show weaker growth after government stimulus spending tapers off.

Sales of new homes surged to a seasonally adjusted pace of 433,000 in July from 395,000 in June, the Commerce Department said, providing another sign the housing market is bouncing back from the historic bottom reached early this year. Driven by falling prices, the fourth-straight monthly increase was greater than expected.

While sales are still off nearly 70 percent from the incredible peak four years ago, they are still up more than 30 percent from the bottom in January — a big relief after a long decline.

The improved outlook could help further boost the economy. As home sales rise, builders will gradually need to hire more workers to pour foundations and pave roads, reversing the trend that saw 1.4 million industry jobs shed since the recession began.

Much like Cash for Clunkers, homebuyers are rushing to take advantage of a federal tax credit that covers 10 percent of the home price, or up to $8,000, for first-time owners. Home sales must be completed by the end of November for buyers to qualify.

For condo improvement tips go to How to Make the Space in Your Condo Feel Larger or Inexpensive Ways to Increase Your Condo’s Value.

Allow me to help you find the home of your dreams Contact Eddie Perez at (201) 344-2886, www.investhoboken.com.

A mortgage industry group wants Fannie Mae and Freddie Mac replaced with private companies that would be able to issue mortgage bonds formally backed by the federal government.

The recently released Mortgage Bankers Association’s proposal, offers a detailed plan for how to restructure the U.S. mortgage market, which has been torn apart by the housing bust.

The Obama administration doesn’t expect to announce its plans for the two companies until early next year. It has listed several options, including merging them into a federal agency, shutting them down, or have their bad mortgage assets split into a new government-backed company.

Fannie Mae and Freddie Mac own or guarantee about $5.4 trillion in mortgage debt and have needed about $96 billion in federal aid since they were seized by federal regulators last fall. The companies’ debt is not officially backed by the federal government, but has been effectively guaranteed since the takeover.

The mortgage bankers’ plan would replace Fannie and Freddie with several federally regulated private companies known as Mortgage Credit Guarantor Entities (nicknamed “McGees”). They would buy loans and sell them as bonds with their own guarantee attached, and would pay the government a fee for its backing.

Fannie and Freddie could be restructured into the new companies, but they would have to shed their bad mortgage assets first, possibly in the form of a government-owned “bad bank.” Major banks like Bank of America Corp., Wells Fargo & Co. and JPMorgan Chase & Co., could also take up this role, provided they create separate subsidiaries to do so.

Fannie and Freddie in the past had powerful lobbying operations, but are no longer allowed to lobby the government. That opens up the debate to more far-reaching reforms, and is an opportunity for Fannie and Freddie’s rivals to pick up business.

• You must start a job within a year of your move. It is not necessary that you arrange to work before heading to a new locale.
• Your employer cannot reimburse you for the expenses. If your employer does reimburse your expenses, you must claim the money as income on that year’s tax return.
• You must pass the “distance test.” Your new job or business must be 50 miles further than your old job was from your previous home. If you don’t have a previous workplace, your new job must be 50 miles from your former residence. If you move less than 50 miles, you must prove that your move was necessary for work or that a closer home is saving you time or money to get the deduction.
• You must also pass the “time test.” Once you relocate, you must work full-time for at least 39 weeks during the 12 months after you move. Self-employed workers have to meet the first criteria, plus they must work full-time for a total of 78 weeks in the first 24 months.

The benefits

If you’re eligible, you can start deducting expenses as soon as your belongings are on their way to a new town.

What you can deduct

• Travel by car. If you (or a member of your household) drive to your new digs, you can deduct the cost of gas and oil — provided that you keep and document your receipts. You can also deduct the standard mileage rate of 20 cents per mile.
• Packing and moving belongings. You can deduct the cost of packing, crating and moving your stuff from your former home to your new home. You can also deduct the cost of shipping pets or cars.
• Storage costs. Once you move from your former home, any storage costs for the next 30 days are deductible.
• Lodging expenses. You can start deducting expenses for lodging the day your furniture is removed from your old house. If your family does not travel together, you can deduct expenses for one trip per person.

What you cannot deduct

• Food expenses. All the snacks, drinks and meals bought on your trip come from you own pocket.
• Moving costs for new furniture. If you buy furniture on the way to your new home, you cannot deduct the price of moving it. You also can’t deduct the cost of the furniture — no matter how good of a deal you get.
• Detours or sightseeing on the way to your new home. You’re on your own if you deviate from the most direct route to your new place.
• Costs associated with buying or selling homes. This includes closing costs, mortgage fees and improvements to help sell your old home.
• Trips other than the actual move. Costs from pre-move house-hunting trips or returns to your old haunt are not deductible.

For more valuable information please go to All About Home Home Inspections.

If you are looking for assistance in finding the perfect home in Hoboken, contact Eddie Perez at (201) 344-2886 or go to Hoboken Condo Expert.

A large tax hit wiped out Toll Brothers Inc. profits for the third fiscal quarter,but the luxury builder saw housing markets improve in many parts of the country.

Toll saw its first annual increase in new home contracts since 2005. Its cancellation rate was the lowest in three years. The current quarter is off to a great start with 26 percent more buyers putting down deposits than a year ago.

It’s still tough out there, but “things sure feel better than they did six months ago,” Robert Toll, chairman and CEO, told analysts. “We believe declining cancellations and more solid demand indicate that the housing market is stabilizing.”

While home sales continue to be effected by job losses and tighter mortgage lending standards, recent housing data and reports from major homebuilders like Toll Brothers Inc. suggest the worst of the housing market slide may be over. Nationally, new home sales have risen for four months in a row, and prices have edged up for the past two months..

The company lost $472.3 million, or $2.93 a share, in the three months ended July 31. That compares with a loss of $29.3 million, or 18 cents a share, the same period last year.

“We believe customers are recognizing that now is the time to get into the market to take advantage of near-record affordability in what is still, for now, a buyers’ market,” Toll said.

Demand is strong enough that Toll is reducing incentives and raising its prices in select communities.

The Commerce Department recently reported sales of new U.S. homes surged almost 10 percent in July, another sign the housing market is climbing back from the historic bottom it reached early this year.

Similar to a Cash for Clunkers effect, homebuyers are rushing to take advantage of a federal tax credit that covers 10 percent of the home price, or up to $8,000, for first-time owners. Home sales must be completed by the end of November for buyers to qualify.

Builders and real estate agents are urging Congress for that credit to be extended. If it is not, there is a risk sales could reverse their upward trend.

For more information about toll brothers properties please go to The Incredible Hudson Tea Building.

If you would like assistance finding the home of your dreams, please contact Eddie Perez at (201) 344-2886, www.Investhoboken.

Weekly statistics 8/23/09- 8/30/09

6 condos went into contract.
17 condos closed last week.

As of today, there are a total of 169 Hoboken properties pending to close.

Here are last weeks deals...

PENDING CONTRACTS

Studio & 1 bedroom
1 accepted offer
68 days on market.

CONDO-COOP - Pending

ADDRESS	Area	Sq Feet	Baths	Beds	DOM	LP	SP
924 JEFFERSON ST	Hoboken	800	1	1	68	$389,900
Total Listings					Avg	Avg	Avg
1					68	$389,900

CONDO-COOP - Pending

ADDRESS	Area	Sq Feet	Baths	Beds	DOM	LP	SP
807 WASHINGTON ST	Hoboken	885	1	2	18	$399,900
121 WILLOW AVE	Hoboken	709	1	2	129	$445,000
72 GARDEN ST	Hoboken	1250	2	2	155	$519,000
81-87 JACKSON ST	Hoboken	1340	2	2	62	$569,168
Total Listings					Avg	Avg	Avg
4					91	$483,267

CONDO-COOP - Pending

ADDRESS	Area	Sq Feet	Baths	Beds	DOM	LP	SP
207 2ND ST	Hoboken	1594	2	3	122	$877,000
Total Listings					Avg	Avg	Avg
1					122	$877,000

CONDO-COOP - Sold

ADDRESS	Area	Sq Feet	Baths	Beds	DOM	LP	SP
64 2ND ST	Hoboken	452	1	1	67	$290,000	$270,000
551 OBSERVER HIGHWAY	Hoboken	806	1	1	82	$359,000	$335,000
800 JACKSON ST	Hoboken	812	1	1	456	$397,900	$365,000
725 JEFFERSON ST	Hoboken	615	1	1	41	$389,000	$370,000
68 PARK AVE	Hoboken	699	1	1	41	$399,000	$380,000
300 NEWARK ST	Hoboken	855	1	1	12	$399,000	$385,000
Total Listings					Avg	Avg	Avg
6					116	$372,316	$350,833

CONDO-COOP - Sold

ADDRESS	Area	Sq Feet	Baths	Beds	DOM	LP	SP
800 JACKSON ST	Hoboken	1110	2	2	294	$635,900	$495,000
116 MADISON ST	Hoboken	1351	2	2	89	$519,000	$499,000
78 JACKSON ST	Hoboken	1300	2	2	460	$595,000	$550,000
530 MADISON ST	Hoboken	500	2	2	47	$619,000	$580,000
1200 GRAND ST	Hoboken	1121	2	2	23	$629,000	$600,000
328 GARDEN ST	Hoboken	1040	2	2	0	$629,000	$620,000
1425 GARDEN ST	Hoboken	1441	2	2	461	$765,000	$675,000
1025 MAXWELL LANE	Hoboken	1317	2	2	47	$899,000	$825,000
1425 GARDEN ST	Hoboken	1567	2	2	141	$899,000	$855,000
Total Listings					Avg	Avg	Avg
9					173	$687,766	$633,222

CONDO-COOP - Sold

ADDRESS	Area	Sq Feet	Baths	Beds	DOM	LP	SP
109 JACKSON ST	Hoboken	1801	2	3	84	$649,000	$652,500
81 ADAMS ST	Hoboken	1570	2	3	85	$769,000	$725,000
Total Listings					Avg	Avg	Avg
2					84	$709,000	$688,750

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