Has this ever happened to you?

Another humorous, but true, scenario.

Call us now and we can show you how we can get you into your own place in a very short time.

Terry Iwaniw
REALTOR Associate
ReSales & Investment Realty, LLC
Off: 856-795-3111 x263
Cell: 609-417-1086
http://snjrealestate.ning.com
http://www.snewjerseyhomes.com
Connect on Facebook – http://profile.to/terryiwaniw

Tags: first time buyers, first time home buyers, firstv time home buyer credit, home ownership, the real story

Why is a Home Inspection Important? 3 Reasons

If you do not think that a home inspection is important, you are wrong. While some buyers make a purchase without having an inspection, nobody would recommend this. The fact of the matter is that you never know what is wrong with a home. And guess what? If you do not order a home inspection, you may never find out. If you do, it could be several months later.

Here are three of the best reasons to consider ordering a home inspection.

1. Many people think that a home inspection will cost them a lot of money. But all in all, this is not true. For the most part, you should be able to order a home inspection for right around $300 or so. Of course, this will differ based on the type of property, area, and much more. But this is a small price to pay for finding out what could potentially be wrong with the home that you are buying.
2. If you do not pay for a home inspection now, you may end up paying for it later. In other words, a problem that is not caught before you buy is one that you will have to pay for on your own when you discover it at a later date. And if the problem is a big one, such as a leaky roof, you are going to bet out quite a bit of money. When you pay for a home inspection you will give yourself the chance to learn about all the problems you are buying, or maybe even have them fixed before you move in.
3. A home inspection will give you peace of mind. You may not think that you need to order an inspection, but after you move in you will begin to worry about any problems that may be haunting you. It is much better to pay for an inspection before buying so that you can live stress free after moving in. It is no fun to always be worrying about something going wrong.

These are three great reasons to order a home inspection. If you are on the fence about whether or not to pay for an inspection, let the three tips above sway you towards doing so.

Tags: buyers, home buyers, home buying, home inspections, home ownership

Still A Buyer’s Market

The following article was written by NAR’s chief economist, Lawrence Yun. 

Modest near-term movement is expected in existing-home sales, with a recovery in sales seen during the second half of the year. The Pending Home Sales Index, NAR’s forward-looking indicator based on contracts signed in May, fell 4.7 percent to 84.7 from an upwardly revised reading of 88.9 in April, and remains 14.0 percent below May 2007 when it stood at 98.5. Some pullback after a sharp increase in the previous month was expected. The overall decline in contract signings suggests we are not out of the woods by any means. The housing stimulus bill that is still being considered in the Congress is critical to assure a healthy recovery in the housing market, jobs and the economy.

But location has never mattered more than in the current market. Look at the pending home sales index for the West. While it’s true the index slipped 1.3 percent to 97.5 in May in that region, it was 2.0 percent higher than it was in May of 2007. Indeed, some markets have seen a doubling in home sales from a year ago, while others are seeing contract signings cut in half. For instance, double-digit pending sales gains in May from a year ago were noted in Colorado Springs CO, Sacramento CA and Spartanburg SC. In addition, price conditions vary tremendously, even within a locality, depending upon a neighborhood’s exposure to subprime loans.

Current real estate market conditions are positive for most buyers: still-attractive interest rates, a large inventory of homes available for sale, and many sellers willing to negotiate their prices – sometimes significantly. And in spite of the headlines surrounding issues with Fannie Mae and Freddie Mac – as well as the recent federal “takeover” of IndyMac – there is still mortgage capital out there. Credit may be tightened, but lenders are still happy to originate a mortgage loan to households who qualify. And remember: owning a home still provides long-term value – and most buyers today plan to remain in their homes for five or more years. Home buyers can get a great deal right now.

Concerns Remain

Yes, there are some concerns on the horizon. Although inflationary expectations appear to be under control for the time being, sharper consumer price gains could lead to notably higher mortgage interest rates in 2009. Based on current indicators, the 30-year fixed-rate mortgage is forecast to rise gradually to 6.5 percent by the end of this year, and then hold at that level for most of 2009. But note – that is still well below the “threshold” level of 7 percent. In spite of a month to month decrease from April to May, housing affordability – as measured by NAR’s housing affordability index — is improving this year and is likely to rise 15 percentage points to 127.0 for all of 2008.

Existing-home sales are expected to grow from an annual pace of 5.01 million in the second quarter to 5.75 million in the fourth quarter. For all of 2008, existing-home sales should total 5.31 million, and then increase 5.0 percent next year to 5.58 million. That is less than 100,000 unit sales off the annual pace last year.

The speed at which home prices have declined in a few select markets is unprecedented, but the large price declines in those areas have enticed bargain hunters back into the market. Interestingly, there have been reports of multiple bidding after the large price cuts, so it is possible that most of the price declines have already occurred in those markets. The aggregate median existing-home price (on a national basis) is projected to fall 6.2 percent this year to $205,300, and then rise by 4.3 percent in 2009 to $214,100.

New-home sales are a different story. They are likely to fall 32.3 percent to 525,000 in 2008 and decline another 3.4 percent next year to 507,000. In light of high inventory conditions, rising commodity prices and construction costs will curtail new home construction deep into next year. Housing starts, including multifamily units, will probably fall 28.7 percent to 966,000 this year, and then drop another 9.0 percent in 2009 to 879,000. The precipitous drop in starts is due in part to some overbuilding during the “boom” years, as well as the rising costs of construction. The median new-home price is expected to decline 3.2 percent to $239,300 this year, and then rise 5.3 percent in 2009 to $251,900.

Officially, the U.S. economy has still not drifted into recession. In fact, GDP growth in the first quarter of this year was revised upward from preliminary estimates – albeit at a slow 1.0 percent rate. Growth in GDP is forecast at 1.6 percent for all of 2008 and 1.4 percent next year – not spectacular, but still positive. Inflation, as measured by the Consumer Price Index, is forecast at 3.7 percent this year and 2.4 percent in 2009. Unfortunately, personal income gains are unlikely to keep pace with rising prices. Inflation-adjusted disposable personal income is projected to grow 1.5 percent in both 2008 and 2009.

Conclusion

So, what does all this mean for housing consumers? It will continue to be a buyer’s market for a while. Obviously, we will need to watch developments with credit markets and the GSEs, but if a potential buyer can qualify for a mortgage, there is plenty of choice out there.

Tags: buyer's market, buyers, Buying, home ownership, homes sales, housing market, Marketplace, real estate sales

SEVEN THINGS YOU NEED TO KNOW ABOUT REAL ESTATE IN NEW JERSEY

The following is the latest press release from the NJ Association of REALTORS.

(Edison, NJ) New Jersey residents might be surprised to learn that there are many positive aspects about the state’s real estate market. Currently, New Jersey real estate market offers many opportunities, evidenced by areas of positive growth including rising median sales prices in some areas of the state, increasing affordability rates and a high average of accumulated home equity, according to statistics presented by the New Jersey Association of REALTORS^® (NJAR^®).

“There is no doubt that some New Jersey residents are still undecided as to whether now is the right to buy a home,” said NJAR^® Executive Vice President Jarrod C. Grasso. “By highlighting statewide market information, we’re arming the public with the knowledge they need in order to educate themselves and evaluate their housing choices.”

Below are seven key facts about New Jersey real estate buyers and sellers should consider when thinking about a real estate transaction.

1. New Jersey homes have generally maintained their values. National news about tumbling residential real estate prices does not present an accurate picture of New Jersey’s local markets. While the national seven year home appreciation rate is 37.8 percent, New Jersey’s is more than double that amount at 80.4 percent. Some areas of the state, Bergen, Essex, Mercer, Cape May and Salem counties, saw median price increases in the first quarter of 2008.
2. The market favors first-time home buyers, who make up 40 percent of the New Jersey market. Buyers currently have many more homes to choose from and are benefitting from mortgage interest rates that are near historic lows. Without having to sell previously-owned property, first-time buyers can also take advantage of the increasing rate of affordability. According to the First Quarter 2008 New Jersey Home Sales Report, New Jersey’s housing affordability composite index rose over 100, signifying that a family earning the state median income has the potential to qualify for a mortgage loan on a median-priced home, assuming a 20 percent down payment.
3. It’s also a good time to trade up. Homeowners in need of a larger home might be hesitant about listing their current home in a buyer’s market. However, while sellers may have to accept a more realistic price for their current home, the seller of the home they wish to purchase is in the same situation. Realistic pricing is key and REALTORS^® familiar with a local market can be invaluable in pricing and marketing your home.
4. Owning a home builds long-term wealth. Over the last decade, the median prices of homes in almost every metropolitan statistical area that covers the state have more than doubled; illustrating that homeownership is a sound financial investment that historically outperforms the stock market in building long-term wealth. New Jersey home buyers who purchased their homes seven years ago have accumulated an average of $156,300 in home equity.
5. A home is much more than a nest egg. Despite the tax benefits and financial security which homeownership can provide, a recent survey of New Jersey homeowners revealed that the desire to establish a household and have a place to call their own was the number one reason for buying a home.
6. New Jersey has a lot going for it. There are many positive economic and market forces in the Garden State that support the long-term health of residential real estate. Reflecting a strong employment market, New Jersey’s median income of $64,470 is the second highest in the country. Also, excellent school systems, proximity to New York and Philadelphia, a thriving tourism industry and an extensive transportation infrastructure all enhance the vitality of this area.
7. There are 53,000 REALTORS^® in New Jersey that can provide you with localized information. Nine out of ten home buyers in New Jersey choose to work with a REALTOR^® and 86 percent said they would probably work with the REALTOR^® again. REALTORS^® have a thorough understanding of the dynamics of their local markets and are ready to guide potential homeowners through the process.

These seven things consumers need to know about real estate in New Jersey will be featured in a consumer brochure to be distributed to REALTORS^® throughout the state in the coming weeks in order to inform their clients with facts about the state’s real estate market. NJAR^® is encouraging New Jersey residents to Get the REAL Story^SM on real estate in New Jersey with a public education campaign that features an informational website, www.REALstoryNJ.com, designed to assist potential buyers and sellers in learning about New Jersey’s real estate market.

“This is one more crucial step in helping to educate New Jerseyans about the opportunities that the state’s real estate market holds. By going to the website, by researching different options in their area and by consulting with REALTORS^®, buyers are able to better understand their local markets and are able to make educated decisions,” said NJAR^® President Drew S. Fishman. For more information on the campaign, or simply to Get the REAL Story^SM on real estate in New Jersey, visit www.REALstoryNJ.com.

Linda & Terry Iwaniw
REALTOR Associates
First Time Home Buyer Specialists
Foreclosure Prevention Consultants
RE/MAX Home Team

Tags: Association of REALTORS, Board of Realtors, consultants, home ownership, Marketplace, new jersey, NJAR, Real Estate, real estate for sale, real estate market, specialists