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NJ Market Update – 2nd Quarter 2010
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Garden State Resales Outpace U.S.
According to the NATIONAL ASSOCIATION OF REALTORS ® (NAR) second quarter 2010 State Resale Report, New Jersey existing home sales have far outpaced the nation. Existing home sales in the Garden State increased 15.4 percent from the first quarter of 2010 to the second. New Jersey’s resales are 29.9 percent higher than the second quarter of last year. The national figure for second-quarter resales only showed a quarterly sales increase of 9.1 percent and a yearly increase of 17.3 percent.
In addition, each of New Jersey’s metro areas showed year-over-year growth in median home price, according to NAR’s Metropolitan Area Home Price Report. According to NJAR® CEO Jarrod Grasso, “This may be a sign of market stability. Even with the tax credit out of the equation, today’s buyers can experience record-low interest rates and affordable prices. However, these conditions will not last forever.” View NJAR®’s full statement
JULY 2010 Newsletter Housing Trends eNewsletter
JULY 2010 Newsletter Housing Trends eNewsletter
Welcome to the most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, with national and local housing information that you may find useful whether you’re in the market for a home, thinking about selling your home, or just interested in homeowner issues in general.
The Housing Trends eNewsletter contains the latest information from the National Association of REALTORS®, the U.S. Census Bureau and Realtor.org reports, videos, key market indicators and real estate sales statistics, a video message by a nationally recognized economist, maps, mortgage rates and calculators, consumer articles, plus local neighborhood information and more.
Please click here to view the JULY 2010 Newsletter Housing Trends eNewsletter.
If you are interested in determining the value of your home, click the Home Evaluator link for a free evaluation report.
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Camden County Quick Market Stats
Posted by admin on May 11, 2010 in Market Analysis
In March there were 3745 homes for sale in the county. March of last year we had 3784 homes for sale in the county. This means that the amount of months it will take to sell off these homes, without adding more homes to the market, is approximately 11.5 months, whereas in March 2009 it was 12 months to sell all of the homes.
In March 2010, 309 homes were sold for a mdeian price of $180,000; which was 90.6% of the asking list price. Same month in 2009 there were only 256 homes that were sold for a median price $166,000; which was only 88.7% of the asking list price. Year-To-Date figures for 2010 ending in March showed a total of 692 homes sold for a median price of $173,000 that was 89.54% of the homes’ median asking price Year-To-Date for 2009 ending in March showed only 660 homes sold for a median price of $168,000 and was only 88.44% of the homes’ mdeian asking price.
This shows that now is a good time to look to sell your home. Buyers are getting past the memory of having overpaid in the last few years and are not forcing prices down too much to counter those previous years. The current inventory of homes (is a calculation of total number of homes on the market divided by the average number of homes sold per month) is decreasing and the excess inventory is being sold off, as shown by the higher numbers of homes that were sold this year versus last year.
And the interest rates are not out of reach for the average first time home buyer. Remember, the key factor for anyone that is looking to buy a homes is the price of money (interest rate) as opposed to the price of the home. As important as the price of the home may be to a home buyer, more important to them should be the price of money. The price of the home is what they will pay one time…the price of money is what they will be paying each month with their mortgage payment.
© 2009 Freddie Mac. Averages are for conforming mortgages with 20% down.
Loan Type Avg. Rate Fees & Points Margin
30YR FRM 5.03% 0.7 N/A
15YR FRM 4.40% 0.6 N/A
5YR ARM 4.11% 0.7 2.73
1YR ARM 4.09% 0.5 2.71
If you want to find out if this is the right time to sell you homes, give me a call to scheduel a no cost, no obligation Comparative Market Analysis or go to http://www.sellmysnjhome.com and complete the form.
Sharing Your Property With Tenants
If you are lucky enough to own a piece of property that has a backhouse, cottage or granny flat on it then you may wish to rent that structure out for additional income. In fact, the opportunity to use that structure to help pay your mortgage or provide you with additional income may be one of the reasons why you bought the property in the first place. However, if you are thinking about becoming a landlord and renting out part of your property there are some important things to consider and to decide before you begin looking for a tenant.
The Landlord Tenant Agreement
Whenever you become a landlord, your landlord tenant agreement, or rental agreement, is always very important. It is especially important when you are going to be sharing the property with your tenant. In addition to the standard terms of a landlord tenant agreement such as the amount of the rent, when the rent is due and describing who is responsible for maintenance, repairs and insurance, an agreement to rent a backhouse should include information about:
· How common areas such as lawns and pools are going to be shared. Are you going to allow your tenant to access them at all or only at certain hours?
· The number of guests your tenant can have on your property at one time. Are you concerned about parties and how that will affect your ability to relax or work at home?
· How many tenants are going to occupy the rental space. You may be concerned about the safety of the tenants, the potential noise and the wear and tear on the structure.
· The presence of children and / or pets both of whom can damage your property and create unwanted noise.
The Tax and Legal Implications of Renting a Backhouse
There are always tax implications to being a landlord. However, if the tenant shares your property then your tax liabilities are a little more complicated than if you have a separate property to rent. It is important to keep track of the expenses for the part of the property that you use and the part of the property that you rent. Your tax deductions are dependent on you keeping careful records and taking proper deductions for the part of the property that you use personally and for the part of property that you rent to others.
Since you will be living in close proximity to your tenant, it is best to have a real estate attorney review your landlord tenant agreement before you provide it a tenant for his or her signature. A real estate attorney can also advise you concerning the tax implications of your arrangement. Then, you can be confident that the rental will provide you with income and that you are protecting your property interests.
If the rental of a backhouse, cottage or granny flat is done in the correct manner then it can provide real benefits to the property owner / landlord. Therefore, it is important to consider your options and create an agreement that will be beneficial to you now and in the future.
What is a 1031 Exchange?
Property is often bought and sold for business purposes. It makes sense, from a public policy perspective, to encourage the buying and selling of property so that business owners purchase the property that is best suited for their use. Property may include real estate, personal property such as equipment, tools and motor vehicles, or livestock, for example. The government, recognizing that the possible capital gain taxes on the sale of property might prevent some businesses from buying and selling property, has enacted what is known as the 1031 Exchange Rule.
What is the 1031 Exchange Rule?
The 1031 exchange rule is part of the IRS Code. It allows people to replace business or investment property without having to pay capital gains taxes at the time of the sale. It is meant to encourage the productive use of property in trade and business. Property that is bought with the intent of creating a quick resale and private residences will not qualify for a 1031 exchange. The potential tax benefits of a 1031 exchange are significant. Therefore, the IRS has established some strict guidelines about the types of properties and the types of transactions that are eligible for this tax break.
Does My Transaction Qualify as a 1031 Exchange?
If you are trying to determine whether your real estate transaction would qualify as a 1031 exchange then consider:
- Whether the properties involved in the exchange are held for valid trade, business or investment purposes;
- Whether the properties qualify as eligible for a 1031 exchange. Section 1031 b of the IRS Code explains what is and is not eligible for a 1031 exchange. For example, real estate is eligible but stocks and bonds are not eligible;
- Whether the properties are of like kind. For example, both properties are real estate in the United States and not other types of personal property or international real estate.
- Whether you identified the replacement property within 45 days of closing on your current property and closed on the replacement property within 180 days of closing on your other property.
- Whether the proceeds from the sale of your current property must go to a qualified intermediary until you purchase your replacement property. The qualified intermediary enters a written contract with the person who is buying and selling property. The qualified intermediary holds the funds from the sale of a property and acquires the next property and then transfers the property to the taxpayer.
All of the funds must be reinvested in the replacement property. Any cash that is left over after the purchase of the replacement property is called “boot” and will be taxed.
As is the case with many tax breaks, the requirements for a 1031 exchange are strict and the penalties for not complying with all of the requirements can be significant. It is, therefore, important to work with an attorney versed in 1031 exchnages before entering a 1031 exchange transaction. If you don’t have one or are not currently working with one, you can give me a call and I will recommend one that we have that we can recommend. The attorney can make sure that all of the requirements have been satisfied and that the exchange is made pursuant to section 1031 for the benefit of your business.
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Updated Inventory of HUD Owned Homes For Sale in Southern NJ
Posted by admin on Apr 2, 2010 in HUD, Listing, Marketplace, Real Estate, for sale, home inventories
HUD has updated their list of homes available to purchase. You can view the current inventory of available HUD homes in the Southern NJ counties of Camden, Atlantic, Burlington, Gloucester, and Cumberland**. These properties are bank/lender foreclosures that HUD has acquired; HUD does NOT foreclose on properties. Please note that the priority of Owner Occupant means that the properties are not yet available to investors but are only available to purchasers planning on occupying the property (signed affidavit will be required). When the priority shows All Bidders, the properties are available to owner occupant purchasers and investors.
All bidders need to be pre-approved if mortgage financing is to be used. FHA financing is usually the best for home buyers. Call me if you need a referral to a mortgage lender.
ATTENTION: Home Buyers as is outlined in the policy for forfeiture of earnest money deposit, please be aware that contract cancellations as a result of loan denial due to “property condition” will result in the forfeiture of the earnest money deposit. THIS POLICY IS STRICTLY ENFORCED.
Confirm with your mortgage lender that the approved financing program can be used on an AS-IS sale prior to submitting your bid!
I represent home buyers and home sellers as their exclusive REALTOR in the Southern NJ counties of Camden, Gloucester, Atlantic, Cumberland, Salem, & Burlington. Full REO service for asset managers.
Sign up to receive free notifications into your e-mail of new and updated HUD owned homes that come onto the market. Don’t accept second-best in your HUD purchase transactions, call The HUD Expert.
** I have posted the list on NJ HUD Homes as of 04/02/2010.
Time Is Running Out! Don’t Miss Out On The Tax Credit.
Terry Iwaniw | Create Your Badge
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HUD Owned Homes For Sale in Camden, Gloucester, & Cumberland Counties, NJ
This is the current inventory of available HUD homes in the Southern NJ counties of Camden, Gloucester, and Cumberland. These properties are bank/lender foreclosures that HUD has acquired; HUD does NOT foreclose on properties. Please note that the priority of Owner Occupant means that the properties are not yet available to investors but are only available to purchasers planning on occupying the property (signed affidavid will be required). When the priority shows All Bidders, the properties are available to owner occupant purchasers and investors.
All bidders need to be pre-approved if mortgage financing is to be used. FHA financing is usually the best for home buyers. Check with me if you need a referral to a mortgage lender.
CAMDEN COUNTY
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CUMBERLAND COUNTY
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GLOUCESTER COUNTY
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ATTENTION: Home Buyers as is outlined in the policy for forfeiture of earnest money deposit, please be aware that contract cancellations as a result of loan denial due to “property condition” will result in the forfeiture of the earnest money deposit. THIS POLICY IS STRICTLY ENFORCED.
Confirm with your mortgage lender that the approved financing program can be used on an AS-IS sale prior to submitting your bid!
I represent home buyers and home sellers as their exclusive REALTOR in the Southern NJ counties of Camden, Gloucester, Atlantic, Cumberland, Salem, & Burlington. Full REO service for asset managers.
Sign up to receive free notifications into your e-mail of new and updated HUD owned homes that come onto the market. Don’t accept second-best in your HUD purchase transactions, call The HUD Expert.
Terry Iwaniw | Create Your Badge
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