New Jersey Real Estate Market Update
By Staff Report
By Diana Brunner
Keller Williams Realty, Jackson
www.dianabrunner.com
As a real estate broker I think the question I hear most often day after day is “How’s the market?”. Potential buyers, sellers, and even those not looking to be a part of the marketplace in the near future are always inquiring. It is in that spirit that I am writing this article to summarize the 2010 real estate market and to forecast a bit on the upcoming 2011 market. I have compiled some data from various sources, both local and national, to assist in accomplishing this task.
First to review is the chart above . This is a year to year comparison of closed home sales in the single family division as compiled by the Monmouth County Association of Realtors from 2009 and 2010. As you can see, the earlier part of 2010 saw a steady increase month after month leading up until June where it peaked at over 1,200 closings in one month alone. This activity was a direct result of the extension of the federal 1st time home buyer’s tax credit and the addition of a credit for existing homeowners as well.
Since the expiration of both of those credits on June 30 activity levels returned to normal and even maintained some stability throughout the holiday season. The most impressive was the rise of closed sales in December, traditionally a very slow season for real estate.
Nationwide, The Pending Home Sales Index (PHSI), a forward-looking indicator, rose 3.5 percent to 92.2 based on contracts signed in November from a downwardly revised 89.1 in October. The PHSI however in the Northeast increased 1.8 percent to 72.6 in November (at the time of this article December’s figures were not yet available). The broad trend over the past six months is indicating a gradual recovery into 2011, according to the National Association of Realtors and their chief economist Lawrence Yun. Historically high housing affordability is boosting sales activity. “In addition to exceptional affordability conditions, steady improvements in the economy are helping bring buyers into the market,” Yun said. “But further gains are needed to reach normal levels of sales activity.”
“If we add 2 million jobs as expected in 2011, and mortgage rates rise only moderately, we should see existing-home sales rise to a higher, sustainable volume,” he said. “Credit remains tight, but if lenders return to more normal, safe underwriting standards for creditworthy buyers, there would be a bigger boost to the housing market and spillover benefits for the broader economy.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 4.71 percent in December from 4.30 percent in November; the rate was 4.93 percent in December 2009. The 30-year fixed-rate mortgage is forecast to rise gradually to 5.3 percent around the end of 2011; at the same time, unemployment should drop to 9.2 percent.
Total housing inventory at the end of December fell 4.2 percent to 3.56 million existing homes available for sale, which represents an 8.1-month supply at the current sales pace, down from a 9.5-month supply in November.
Existing-home sales are projected to rise about 8 percent to 5.2 million in 2011 from 4.8 million in 2010, with an additional gain of 4 percent in 2012. The national median existing-home price could rise 0.6 percent to $173,700 in 2011 from $172,700 in 2010, which was essentially unchanged from 2009. “As we gradually work off the excess housing inventory, supply levels will eventually come more in-line with historic averages, and could allow home prices to rise modestly in the range of 2 to 3 percent in 2012,” Yun said. New-home sales are estimated to rise 24 percent to 392,000 in 2011, but would remain well below historic averages, while housing starts are forecast to rise 21 percent to 716,000.
If you are a current home owner or thinking of becoming a home owner in the near future, there is a very useful website I think you should visit, www.HouseLogic.com. HouseLogic is a free source of information and tool from the National Association of Realtors—that can help you make smart and timely decisions about your home. With content covering home improvement, maintenance, taxes, finance, insurance, and even ways you can get involved in and enrich your community, HouseLogic can help you increase and protect the value of your home by helping you make confident decisions.
Another amazing and useful site is www.Realtor.org . There you can find current up to minute statistics and information to assist you in your decision making as well. The National Association of Realtors has been a champion of homeownership rights and opportunities for more than a century. As an active member I believe helping consumers become more informed, responsible homeowners is important to the stability and value of the housing market – and the overall enjoyment of your home.
If you or someone you know is thinking of buying or selling their home in the future, and you need some guidance, feel free to call, click or visit me at my office today. You can put your trust in my integrity and rely on the fact that you, your friends, or your family will receive the most professional and honest advice when I’m called in to consult, all with no obligation of course! In addition to traditional Realtor services such as determining the fair market value of your home, or helping you locate your dream house, I am additionally qualified in specific areas of expertise.
As a certified Short Sale and Foreclosure Resource from the NAR, I choose to use that knowledge to help my clients prevent foreclosure. With my e-PRO certification you can expect to receive the highest quality of technological marketing strategies available today. I’m even focused on the future of real estate by earning NAR’s Green designation. It has provided me with advanced training in green building and sustainable business practices so that I can seek out, understand, and market properties with green features.
You can call or text me on my mobile phone anytime at (732) 904-8403, you can stop in to my office at 2275 W. County Line Rd. in the Stop & Shop Plaza, or e-mail me at Diana@DianaBrunner.com. It is my ultimate goal to help YOU achieve the American dream of homeownership!
Posted by Staff Report
on Jan 25 2011. Filed under Business, Community News.
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