Home Affordability has Never Been Higher

Now is an opportune time for buyers! Whether you’re looking to upsize, buy your first home, or invest in real estate, home affordability has never been higher. One factor is the incredibly low interest rates which dropped to an all-time low in 2012.

30 Year Fixed Mortgage Rates

According to the latest information from the National Association of Realtors (NAR), the percentage of the median family income required for the median price home payment is at an all-time low of 12.9%, a drop from 23.2% in 2005! That leaves a lot more money for family, fun, and investing.

Percentage of the Median Family Income Required for Median Price Home Payment

Let’s take a look at where we’ve come from. The price of an average car has nearly doubled in the past 23 years, while the cost of bread and gas per gallon have over tripled in price!

Affordability in Perspective

In the mean time, the median home price has risen by 88% while the monthly payment include mortgage and insurance remains at nearly the same level compared to 1989. When it sometimes seems like the price of everything else has skyrocketed, it’s relieving to know that one of the most important things, your home, remains affordable.

Home Affordability (with 20% Down)

	1989	2012
Median Home Price	$94,000	$176,600
Mortgage Rate	10%	3.6%
Monthly P&I Payment	$660	$642

Source: NAR, Freddie Mac

As always, if you’re looking for the latest trends and market information, contact us today! Our team is always gathering the most up-to-date information and putting it to work for our clients. We look forward to helping you!

Rahul and Smitha Ramchandani are a licensed real estate Broker-Salesperson/Sales Representative Team with Keller Williams in New Jersey. They are Buyer Specialists and a Home Marketing Experts. You can reach Smitha and Rahul and their team online at: http://www.Morris-Homes.com, http://www.SRRealEstateGroup.com, and http://www.TheTownhouseExpert.com.

Their team specialize in North Central New Jersey including towns such as Boonton, Chatham, Chester, Convent Station,Denville, East Hanover,Florham Park, Hanover, Harding Twp., Mendham, Montville, Morristown, Morris Plains,Morris Twp., Mountain Lakes, Parsippany, Randolph,Rockaway, Whippany

Real Estate Sales Are Up and the Pace is Increasing

We’re pretty excited to report some shining numbers on recent home sales. They all point to a real estate market that is steadily improving, and we anticipate that it’ll continue through 2013. For example, according to the National Association of Realtors (NAR), annual home sales had rapidly decreased from approximately 6.2 million to 4.4 million in just three years until 2008 – a result of the declining economy in which most lenders and buyers tightened their belts. However, there is much more consumer confidence in the market and the recovering economy, and since 2008, we’ve seen a slow but steady shift to 4.65 million homes sold in 2012. In fact, the increase between 2011 and 2012 was 9.2%!

Home Sales

2012 also saw an rise in the monthly annual pace of sales, up 12.8% from December 2011 to 2012 (NAR). So not only are more homes selling, but the total number of homes being sold is increasing at a quicker pace. Good news for homeowners!

Home Sales: Monthly Annual Pace of Sales (Seasonally Adjusted)

Sellers will be pleased to know that we think the market is becoming more balanced and will trend that way through 2013. We have been experiencing a buyer’s market for the past several years which has meant fewer offers and houses that languished on the market for long periods of time, over a year for many! But our experience so far in 2013 has been positive – we’ve seen many homes receive multiple offers which can often mean a sale price at or near the seller’s asking price.

Of course, numbers vary locally from town to town, and no one knows Northern New Jersey Real Estate like The SR Real Estate Group. The average it time it takes to sell a home can vary drastically from one township to the next – multiple months in some cases. If you are thinking of selling your home, we encourage you to contact us, Rahul and Smitha, for a FREE consultation. We will discuss with you the local trends for your town and neighborhood, and give you a realistic picture for your individual situation. In the mean time, keep checking back or subscribe to our blog feed for up-to-date real estate news and market information!

The opinions expressed in blog are intended to supplement opinions on real estate expressed by local and national media, local real estate agents and other expert sources.  You should not treat any opinion expressed in this post as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion.  Keller Williams Realty, Inc. and the SR Real Estate Group cannot guarantee and is not responsible for the accuracy or completeness of information, and provides said information without warranties of any kind.  All information presented herein is intended and should be used for educational purposes only.  Nothing herein should be construed as investment advice.  You should always conduct your own research and due diligence and obtain professional advice before making any investment decision.  All investments involve some degree of risk.  Keller Williams Realty, Inc. and the SR Real Estate Group will not be liable for any loss or damage caused by your reliance on information contained in this post.

Rahul and Smitha Ramchandani are a licensed real estate Broker-Salesperson/Sales Representative Team with Keller Williams in New Jersey. They are Buyer Specialists and a Home Marketing Experts. You can reach Smitha and Rahul and their team online at: http://www.Morris-Homes.com, http://www.SRRealEstateGroup.com, andhttp://www.TheTownhouseExpert.com.

Their team specialize in North Central New Jersey including towns such as Boonton, Chatham, Chester, Convent Station,Denville, East Hanover,Florham Park, Hanover, Harding Twp., Mendham, Montville, Morristown, Morris Plains,Morris Twp., Mountain Lakes, Parsippany, Randolph,Rockaway, Whippany

Jan to March 2013 Sales Report- Morris County New Jersey Real Estate Recent Townhome/Condo Sales

Morris County Home Sales from January 1, 2013 to March 1, 2013: Check out what's been selling in your neighborhood!

Town	Community	Address	Beds	Baths	Garage	List Price	Sales Price
Butler	Cambridge Heights	369 Cambridge Dr	2	2.1	1	$329,000	$325,000
Butler	River Place	712 RIVER PL	2	2.1	1	$329,000	$305,000
Butler	River Place	509 RIVER PL	2	3.0	1	$249,000	$260,000
Chatham	Rosevalle	10 Sterling Dr  Unit 9	3	4.1	2	$1,425,000	$1,350,000
Chatham	Rosevalle	5 Poplar Lane Unit 51	3	3.0	2	$1,150,000	$1,150,000
Chatham	Rosevalle	35 Sterling Drive Unit 47	3	3.1	2	$1,100,000	$1,116,722
Chatham	Rosevalle	16 Sterling Dr	3	4.0	2	$1,425,000	$1,287,500
Chatham	Sutton Woods	180 Riveredge Dr	2	2.1	1	$419,900	$395,000
Chatham	Sutton Woods	245 Riveredge Dr	1	1.0	1	$194,800	$180,000
Chester	Chestertowne	9 Barkman Way	3	4.1	2	$780,000	$760,000
Chester	Four Seasons	11 Brown Ct	3	2.1	2	$570,000	$565,000
Denville	Berkshire Hills	2907 Vantage Ct	3	2.1	2	$365,000	$353,500
Denville	Berkshire Hills	3007 VANTAGE COURT	3	2.1	2	$349,900	$330,000
Denville	Berkshire Hills	802 Buckland Ct	2	2.1	1	$339,000	$327,500
Denville	Berkshire Hills	702 Buckland Ct	2	2.1	1	$299,000	$299,000
Denville	The Forge	1112 Peer Place	2	2.0	1	$279,000	$270,000
East Hanover	Hanover Park	12 Claire Ct	2	2.0	0	$295,000	$280,000
East Hanover	Castleridge	31 Castle Ridge Dr	3	2.1	1	$389,000	$365,000
East Hanover	Hanover Park	31 Millie Ln	3	2.0	0	$339,000	$332,000
East Hanover	Hanover Park Condos	20 Rebecca Rd	3	2.0	0	$365,000	$328,000
Florham Park	Belantrae Greens	250 Ridgedale Ave Apt D2	2	2.1	2	$449,999	$435,000
Florham Park	Florham on the Fairways	4 Watson Ct	2	3.1	2	$659,000	$640,000
Harding	Shadowbrook	1 Cypress Circle	3	2.1	2	$519,000	$505,000
Madison	Madison Commons	126 Hempstead Ct	3	2.1	1	$569,900	$555,000
Madison	Madison Commons	129 Hempstead Ct  Unit 129	3	2.1	1	$569,000	$550,000
Mendham	Woodland Lake	12 Levitan Ln	2	1.0	0	$149,500	$135,000
Mendham	Mendham Commons	23 Wexford Dr	4	2.1	2	$549,000	$510,000
Mendham	Mendham Commons	48 Essex Dr	3	2.1	1	$359,000	$342,000
Montville	Campagna	136 Changebridge Rd Apt H1	2	2.0	0	$264,900	$245,000
Montville	Campagna	136 Changebridge Rd Apt B3	1	1.0	0	$199,900	$196,000
Montville	Hunting Hills	45 HERITAGE CT	3	2.1	1	$398,000	$387,500
Montville	Longview	6 Eugene Dr	3	2.1	1	$538,800	$515,000
Montville	Montville Chase	15 Davenport Rd	3	2.1	1	$399,000	$372,000
Montville	The Meadows	7 Hancock Ct	3	3.1	2	$439,000	$439,500
Morris Twp.	Wheatsheaf at Morris Twp	6 Wheatsheaf Farm Rd  Unit 2	4	4.1	2	$954,900	$881,000
Morris Twp.	Liberty Greens	20 Northbridge Pl	2	2.1	1	$496,000	$490,000
Morris Twp.	Township Village	316 Pitney Pl	2	1.0	0	$210,000	$195,000
Morris Twp.	Village at Convent Station	98 Village Dr	3	2.0	0	$294,900	$290,000
Morris Twp.	Village at Convent Station	88 Village Dr Unit 88	2	2.0	0	$299,900	$285,000
Morristown	Chestnut Hill	58 Chestnut Street Unit A1	2	3.0	2	$589,900	$568,000
Morristown	Morristown Court	44 RIDGEDALE AVE Unit 7	2	2.0	1	$355,000	$320,000
Morristown	Morristown Square	7 Maple Ave No 5 Unit 5	3	3.1	2	$822,465	$822,465
Morristown	Morristown Square	7 Maple Ave No 10 Unit 5	3	2.2	2	$795,514	$795,514
Morristown	Morristown Square	7 Maple Ave No 9 Unit 4	3	3.1	2	$762,670	$762,670
Morristown	Morristown Square	12 MacCulloch No 6 Unit 6	3	2.1	2	$770,090	$760,330
Morristown	Morristown Square	7 Maple Ave No 8 Unit 3	3	3.1	2	$756,935	$756,935
Morristown	Parsons Village	320 South Street Unit 5-E	1	1.0	0	$187,500	$170,000
Morristown	South Green II	51 Mount Kemble Ave Unit 202	2	2.0	1	$249,000	$232,000
Morristown	Twombly Court	5 Twombly Ct  Unit D	2	2.1	2	$469,900	$450,000
Morristown	Vail Commons	7 Prospect St Unit 509	1	1.0	0	$319,000	$313,000
Morristown	Vail Commons	7 Prospect St Unit 301	1	1.0	0	$279,900	$285,000
Mount Arlington	Seasons Glen	28 Maple Ln	2	2.1	1	$259,800	$266,000
Parsippany	Cambridge Village	189 LITTLETON RD  Unit 87	1	1.0	0	$134,900	$130,000
Parsippany	Cedar Brook	2350 Route 10 Unit 17	1	1.0	0	$127,000	$115,000
Parsippany	Cedarbrook	2350 STATE  ROUTE 10 Unit 31	2	1.0	0	$168,000	$247,500
Parsippany	Cedarbrook	2350 ROUTE 10 Unit C	1	1.0	0	$121,000	$116,000
Parsippany	Glenmont Commons	99 Autumn Ridge Rd	3	3.1	1	$499,900	$460,000
Parsippany	Glenmont Commons	165 Autumn Ridge Rd	3	2.1	1	$415,000	$397,000
Parsippany	Hunting Ridge	71 Albert Ct	3	2.1	1	$459,000	$455,000
Parsippany	Lincoln Gardens	32 Lincoln Ave	1	1.0	0	$154,000	$142,500
Parsippany	Manor II Condominiums	101 N BEVERWYCK RD  Unit 17	1	1.0	0	$109,000	$105,000
Parsippany	Mountain Club	2467 ROUTE 10, 4-2A	2	1.0	0	$208,000	$200,000
Parsippany	Mountain Club	2467 Route 10 Apt 34-1A	1	1.0	0	$136,923	$132,000
Parsippany	Mountain Club	2467 Route 10, 46-3B	1	1.0	0	$136,000	$128,500
Parsippany	Mountain Club	2467 State Route 10  Unit 1B	1	1.0	0	$125,000	$120,000
Parsippany	Powder Mill	105 Patriots Rd	2	1.1	1	$349,900	$329,500
Parsippany	Skyview Heights	96 Edgefield Dr  Unit 96	3	3.1	1	$357,000	$360,000
Parsippany	Skyview Heights	15 EDGEFIELD DRIVE	2	2.1	1	$349,900	$336,400
Randolph	Woodmont	59 Woodmont Dr	2	2.1	2	$429,000	$415,000
Randolph	Woodmont	9 Mahogany Way	2	2.1	1	$325,000	$311,000
Riverdale	Powder Mill at Riverdale	125 Cannella Way  Unit 125	2	2.0	0	$259,000	$257,000
Riverdale	The Grande	8210 Sanctuary Blvd	2	2.0	2	$289,900	$270,000
Riverdale	The Grande	7104 COVENTRY CT  Unit 104	2	2.0	1	$239,900	$242,000
Riverdale	The Grande	5416 SANCTUARY BLVD	1	1.0	1	$234,900	$225,000
Riverdale	the Grande	7204 Coventry Ct	2	2.0	1	$220,000	$200,000
Riverdale	The Grande at Riverdale	4201 RAMAPO CT  Unit 4201	2	2.0	1	$301,990	$301,990
Rockaway	Fox Hills	2301 Franklin Ln  Unit 2301	1	1.0	1	$175,000	$170,000
Rockaway	Greenbriar Fox Ridge	8114 Polk Dr	2	2.1	1	$309,950	$294,950
Rockaway	Stoneview Townhomes	82 LAUREL WOOD CT	3	2.1	0	$279,000	$267,500
Rockaway	Townsquare Village	18 Brotherton Ave	3	2.1	2	$345,000	$308,500
Rockaway	Townsquare Village	18 Powderhorn Dr	3	2.1	2	$260,000	$240,000
Victory Gardens	Victory Highlands	18 Victory Ct	2	1.1	0	$149,900	$145,000

Jan to March 2013 Sales Report- Morris County New Jersey Real Estate Recent House Sales - Morristown, Madison, Chatham, Denville, Randolph, Parsippany, Rockaway, Hanover, East Hanover, Montville, Morris Plains, Morris Township, Florham Park, Roxbury, Butler, Lincoln Park, Morris Twp., Mount Arlington, Mount Olive, Riverdale, Whippany, Washington Twp., New Jersey Real Estate

Smitha Ramchandani is a licensed real estate Broker-Salesperson with Keller Williams in New Jersey. She is a Buyer Specialist and a Home Marketing Expert.. You can reach Smitha and her team online at: http://www.Morris-Homes.com.  Smitha and her team specialize in all Morris County Towns such as Boonton, Chatham, Chester, Convent Station,Denville, East Hanover, Florham Park,  Hanover, Harding Twp., Mendham, Montville, Morristown, Morris Plains, Morris Twp., Mountain Lakes, Parsippany, Randolph,  Rockaway, Whippany