The Time to Buy is Now–Statistics Suggest it is Becoming a Seller’s Market!

With continuously low interest rates, now is an opportune time to buy for owner occupants and investors. This recent Realtor.com article suggests that home prices on average are rising while inventory remains steady which translates to higher demand for homes and more instances of multiple bidding. In a seller’s market, owners are able to be more selective about which offers to accept and may have more negotiating power. Buyers looking to take advantage of the rates should consider purchasing before the market becomes more favorable for sellers.

From the article:
Existing-home sales edged up in January, while a seller's market is developing and home prices continue to rise steadily above year-ago levels, according to the National Association of Realtors^®. Sales rose in every region but the West, which is the region most constrained by limited inventory.
Lawrence Yun, NAR chief economist, said tight inventory is a major factor in the market. "Buyer traffic is continuing to pick up, while seller traffic is holding steady," he said. "In fact, buyer traffic is 40 percent above a year ago, so there is plenty of demand but insufficient inventory to improve sales more strongly. We've transitioned into a seller's market in much of the country."

Here are some interesting, relevant statistics from the article:

• The national median existing-home price for all housing types was $173,600 in January, up 12.3 percent from January 2012, which is the 11th consecutive month of year-over-year price increases
• According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 3.41 percent in January from a record low 3.35 percent in December
• Single-family home sales increased 0.2 percent to a seasonally adjusted annual rate of 4.34 million in January from 4.33 million in December
• Existing condominium and co-op sales rose 1.8 percent to an annualized pace of 580,000 in January from 570,000 in December
• Regionally, existing-home sales in the Northeast increased 4.8 percent to an annual rate of 650,000 in January and are 12.1 percent above January 2012. The median price in the Northeast was $230,500, up 2.4 percent from a year ago

As you can see, buyers are still in a good position, but the market may be swinging the other way towards sellers. If you’re a first time buyer, are up-or-downsizing, or are looking for an investment property, or just need more info, let us be of service! Give us a call at 973-775-9646 or e-mail us at team@morris-homes.com today. We look forward to serving you!


These real estate tip excerpts brought to you by Realtor.org. You should not treat any opinion expressed here as a specific inducement to follow a particular real estate strategy, but only as an expression of opinion.  SR Real Estate Group does not 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.  You should always conduct your own research and due diligence and obtain personalized professional advice before making any decision. SR Real Estate Group and Keller Williams Realty, Inc., will not be liable for any loss or damage caused by your reliance on information contained in this blog.

Original article can be found here: Link


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

Another Amazing Testimonial for SR Real Estate Group

Just received this heartwarming praise from our clients and friends, Greg and Hope. Thank you, guys, it was an honor and a pleasure!

Our relationship with Rahul and Smitha began when we went to visit a home they had listed. We were so impressed we decided that they should represent us during our home search. It turned out to be the best accidental business decision we ever made. We were not easy customers, as we were more interested in our dream house than a specific location, we kept them on their toes! We relied on their expertise in the market, negotiating capabilities and invaluable advice to navigate our way into our dream home. At a price far below what the home was initially listed for!

They set the bar so high that as we try to sell our home in a market they are not in...we just can’t seem to stop comparing them to the realtors we are interviewing to represent us. Unfortunately, everyone is just falling short.

If you are looking for people who seamlessly blend extraordinary customer service, knowledge, experience, compassion and caring into one dynamic package look no further than this team. From giving you the bottom line, to answering late night panic calls on price negotiating they will be there for you through the entire process of selling or buying a home.

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

Don’t Miss Home Tax Breaks This Year! - Part 1

The 2013 tax season is here, and with the April deadline fast approaching, we want to make sure you have this handy info to help you navigate the world of homeowner taxes. Here is part 1 of our series of tips. Stay tuned for Part 2 of our series of tips, and as always, feel free to contact SR Real Estate Group for the latest real estate information and help!

Mortgage interest deduction

One of the neatest deductions itemizing home owners can take advantage of is the mortgage interest deduction, which you claim on Schedule A. To get the mortgage interest deduction, your mortgage must be secured by your home — and your home can even be a house trailer or boat, as long as you can sleep in it, cook in it, and it has a toilet.

Interest you pay on a mortgage of up to $1 million — or $500,000 if you’re married filing separately — is deductible when you use the loan to buy, build, or improve your home.

If you take on another mortgage (including a second mortgage, home equity loan, or home equity line of credit) to improve your home or to buy or build a second home, that counts towards the $1 million limit.

If you use loans secured by your home for other things — like sending your kid to college — you can still deduct the interest on loans up $100,000 ($50,000 for married filing separately) because your home secures the loan.

PMI and FHA mortgage insurance premiums

Helpfully, the government extended the mortgage insurance premium deduction through 2013. You can deduct the cost of private mortgage insurance as mortgage interest onSchedule A — meaning you must itemize your return. The change only applies to loans taken out in 2007 or later.

What’s PMI? If you have a mortgage but didn’t put down a fairly good-sized down payment (usually 20%), the lender requires the mortgage be insured. The premium on that insurance can be deducted, so long as your income is less than $100,000 (or $50,000 for married filing separately).

If your adjusted gross income is more than $100,000, your deduction is reduced by 10% for each $1,000 ($500 in the case of a married individual filing a separate return) that your adjusted gross income exceeds $100,000 ($50,000 in the case of a married individual filing a separate return). So, if you make $110,000 or more, you lose 100% of this deduction (10% x 10 = 100%).

Besides private mortgage insurance, there's government insurance from FHA, VA, and the Rural Housing Service. Some of those premiums are paid at closing and deducting them is complicated. A tax adviser or tax software program can help you calculate this deduction. Also, the rules vary between the agencies.

Prepaid interest deduction

Prepaid interest (or points) you paid when you took out your mortgage is 100% deductible in the year you paid them along with other mortgage interest.
If you refinance your mortgage and use that money for home improvements, any points you pay are also deductible in the same year.
But if you refinance to get a better rate and term or to use the money for something other than home improvements, such as college tuition, you’ll need to deduct the points over the term of the loan. Say you refi for a 10-year term and pay $3,000 in points. You can deduct $300 per year for 10 years.
So what happens if you refi again down the road?
Example: Three years after your first refi, you refinance again. Using the $3,000 in points scenario above, you’ll have deducted $900 ($300 x 3 years) so far. That leaves $2,400, which you can deduct in full the year you complete your second refi. If you paid points for the new loan, the process starts again; you can deduct the points over the term of the loan.
Home mortgage interest and points are reported on IRS Form 1098. You enter the combined amount on line 10 of Schedule A. If your 1098 form doesn’t indicate the points you paid, you should be able to confirm the amount by consulting your HUD-1 settement sheet. Then you record that amount on line 12 of Schedule A.

These tax tip excerpts brought to you by HouseLogic.com. You should not treat any opinion expressed here as a specific inducement to follow a particular tax strategy, but only as an expression of opinion.  SR Real Estate Group does not 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 expert tax advice.  You should always conduct your own research and due diligence and obtain professional advice before making any decision. SR Real Estate Group and Keller Williams Realty, Inc., will not be liable for any loss or damage caused by your reliance on information contained in this blog.

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

November 2012-Market Update

November 2012  Market Update The national housing market is showing steady signs of recovery due to a combination of rising demand, declining inventory, and low interest rates. A good indicator that the market will experience a full-force recovery is strongly evidenced by the continual increase in median home prices. Usually, prices slow down after the peak summer sales season, but the current gains are a sign that the housing recovery is self-reinforcing. NAR Chief Economist Lawrence Yun states, “The market trend is up. Despite occasional month-to-month setbacks, we’re experiencing a genuine recovery. More people are attempting to buy homes than are able to qualify for mortgages, and recent price increases are not deterring buyer interest. Rather, inventory shortages are limiting sales.” Now is one of the most favorable times in market history to purchase a home due to record-low interest rates. With the uncertainty of the upcoming election and the likelihood that interest rates might not be low for much longer, the time to buy is now. Home Sales In Millions Home sales fell 1.7% month-over-month to a seasonally adjusted rate of 4.75 million units, an 11% increase from last year. Distressed homes (which include short sales and foreclosures that traditionally sell for 15%–20% less on average compared to nondistressed homes) accounted for 24% of September sales, up from 22% of sales the previous month; they were 30% in September 2011. Although the number of distressed properties is decreasing from month to month, they are still high by historic standards. . Home Price In Thousands Home prices have slightly decreased this month, with the current median home price at $183,900, down 1.7% from last month’s median price of $184,900, but up 11.3% from last year. While the month-to-month trend has seen a small dip, the year-over-year trend of increasing home prices is still present. September marks the seventh consecutive month of year-over-year price increases, the largest year-to-date rise since 2005. Inventory- Month's Supply In Months Housing inventory fell 3.3% from last month to 2.32 million existing homes available for sale, a 5.9-month supply. Listed inventory is down 20% from last year’s 8.1-month supply.  NAR Chief Economist Lawrence Yun claims, “The shrinkage in housing supply is supporting ongoing price growth, a pattern that could accelerate unless home builders robustly ramp up production.” Regardless of the small decline in inventory, a 5.9-month supply still represents a fairly balanced housing market. Source: National Association of Realtors Interest Rates Mortgage rates this month continue to decline at or around 3.41%, reaching record lows. While these rates underline an extremely favorable time to buy, “some buyers who could easily afford a mortgage can’t assume they will get one,” states NAR President Moe Veissi. He advises home buyers “to be more focused on the mortgage process in the current environment where lenders and banking regulators are being risk adverse. Shopping for competitive mortgage terms is a good idea, but it may be more important to find a bank that is willing to work with you given your credit history.”    This Month's Video	Contact me, your local real estate expert, for information about what's going on in our area.
Brought to you by KW Research. For additional graphs and details, please see the This Month in Real Estate PowerPoint Report.  The opinions expressed in This Month in Real Estate 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 Month in Real Estate 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., does not 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., will not be liable for any loss or damage caused by your reliance on information contained in This Month in Real Estate. Smitha and Rahul 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. 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

October 2012-Market Update

October 2012  Market Update The national housing market continues to recover, indicated by consistent increases in both home sales and prices. Inventories in much of the United States are primarily balanced, which favors neither sellers nor buyers. However, large pockets of the country are experiencing inventory shortages, which puts pressure on prices. Many of the hardest-hit areas during the downturn now have some of the tightest inventories. The return of price appreciation and a stronger market, particularly in those locations, is a welcome signal of returning market health. “Some buyers are frustrated with mortgage availability. If most of the financially qualified buyers could obtain financing, sales would be about 10 to 15% stronger, and the related economic activity would create several hundred thousand jobs over the period of a year,” states NAR President Moe Veissi. Despite difficult mortgage qualifying conditions sidelining some buyers, others are still taking advantage of excellent housing affordability conditions, which is evidence of notable stored-up housing demand that accumulated since 2007. With the housing market coming close to a full recovery and mortgage rates hitting new record lows, the time to buy is now. Home Sales In Millions Home sales this month rose 7.8% from last month to a seasonally adjusted rate of 4.82 million units, a 9.3% increase from last year. Distressed homes (which include short sales and foreclosures that traditionally sell for 15%–20% less on average compared to nondistressed homes) accounted for 22% of August sales, down from 25% of sales last month and 31% of sales last year. Although the amount of distressed properties is decreasing from month to month, they are still high by historic standards. . Home Price In Thousands Home prices continue to rise due to shrinking inventory and an increase in demand. The current median home price is $187,400, up 9.5% from a year ago and down just 0.2% from last month. This has been the sixth consecutive month of year-over-year price gains, the largest year-to-date rise since 2005. Inventory- Month's Supply In Months Housing inventory rose to 2.47 million homes available for sale—a 6.1-month supply—up 2.9% from last month and down 18.2% from last year’s 8.2-month supply. This marks the ninth consecutive month of inventory at a 6-month supply, a clear indicator of a balanced market and full-scale housing market recovery. Robust improvement in employment is the primary concern remaining, and as that improves the housing market recovery will be on firmer footing for the future. Source: National Association of Realtors Interest Rates Mortgage rates this month at or around 3.49% are back at record lows. The decline in the 30-year fixed rates is partially due to a result of the Federal Reserve’s announcement of “QE3.” QE3 is a new bond purchase plan which should help stimulate the ongoing housing recovery. Home buyer affordability remains high for home buyers who buy now while rates are low.    This Month's Video	Contact me, your local real estate expert, for information about what's going on in our area.
Brought to you by KW Research. For additional graphs and details, please see the This Month in Real Estate PowerPoint Report.  The opinions expressed in This Month in Real Estate 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 Month in Real Estate 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., does not 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., will not be liable for any loss or damage caused by your reliance on information contained in This Month in Real Estate.

Smitha and Rahul 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.

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

August 2012-Market Update

The national housing market continues to recover, indicated by a balanced supply of inventory and increasing home prices across the country. NAR President Moe Veissi states, “The very favorable market conditions are helping to unleash a pent-up demand, which is why housing supplies have tightened and are supporting growth in home prices.”
However, rising demand has led to tight supplies of affordable homes for first-time home buyers, who now only represent 32% of purchasers. NAR Chief Economist Lawrence Yun claims “a healthy market share of first-time buyers would be about 40%, so these figures show that tight inventory in the lower price ranges, along with unnecessarily tight credit standards, are holding back entry-level activity.”
Regardless, with the market heating up and mortgage rates continuing to hit record-lows, now is one of the most favorable times in history to buy a home.

Home Sales

in millions

While home sales declined 5.4% from last month to 4.37 million units, year-over-year sales increased 4.5%. Distressed homes (which include short sales and foreclosures that traditionally sell for 15%–20% less on average compared to non distressed homes) allotted for 25% of June sales, which is unchanged from May, but is 30% below year-ago sales. However, despite the declining levels seen from past years, it is still expected that distressed property sales will still be largely present and higher than the historic average.

Home Price

in thousands

Shrinking inventory and a decline in distressed properties on the market continue to drive home prices up. The median home price rose 5% from last month, and 7.9% compared to a year earlier to $189,400. This is the fourth consecutive month of year-over-year price gains, which hasn’t been seen since February to May of 2006, a period of peak performance in the housing market.

Inventory- Month's Supply

in months

Housing inventory fell another 3.2% in June to a current 2.39 million homes available for sale, a 6.6-month supply. This marks the seventh consecutive month of inventory at a 6-month supply, the threshold for a balanced market, giving both buyers and sellers an equal advantage. Movement out of the three-year buyer’s market is imperative toward reaching a full-scale housing market recovery.

Source: National Association of Realtors

Interest Rates
Mortgage rates at or around 3.53% continue to drop and boost home affordability. These are some of the lowest rates on record since 1971, increasing the urgency to buy now.

This Month's Video



Topics For Home Owners, Buyers & Sellers
With many markets heating up, home prices are rising and inventory is shrinking. This high market activity puts sellers at a strong advantage, but to ensure that your property sells quickly and for the highest price, here are some tips to turn that “For Sale” sign into a “Sold” sign:

• List at market price. Even though the market is in your favor as a seller, incorrectly priced homes will not attract buyers. If you list your home at market price, your home will be on the market for fewer days, you are twice as likely to have multiple offers, and your chances of fewer price reductions and your sales price being close to your list price are much greater.
• Condition is key. Keeping your home in excellent condition includes enhancing your curb appeal by landscaping your front yard, as well as making necessary updates such as painting and roof repair. 93% of homes that were in better condition received offers close to their list price.
  
• Stage your home.  Many buyers prefer to see a depersonalized home, devoid of the seller’s personal items, so that they can picture themselves in it. Staging can be as simple as rearranging furniture or uncluttering a room. The cost of it can be minimal compared to the benefits of more showings and, ultimately, a higher asking price.

Contact me, your local real estate expert, for information about what's going on in our area.

Brought to you by KW Research. For additional graphs and details, please see the This Month in Real Estate PowerPoint Report.

The opinions expressed in This Month in Real Estate 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 Month in Real Estate 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., does not 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., will not be liable for any loss or damage caused by your reliance on information contained in This Month in Real Estate.

Smitha and Rahul 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.
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

July 2012-Market Update

July 2012   Market Update
The national housing market continues to recover, evidenced by a balanced supply of inventory as well as improvements in home prices and the number of homes sold. The median home price increased again this month from last month, reaching $182,000 compared to $155,600 just three months ago, a 17.4% increase.
Recently, a growing trend facing certain regions is tremendous inventory shortages. NAR President Moe Veissi advises buyers in markets with limited supply who are seeing multiple bidding and competition between first-time buyers and cash investors that, “It’s extremely important [for buyers] to listen to the advice of your agent and perform all the due diligence that you would normally do in a more balanced market.”
With rental rates and buyers’ confidence on the rise due to record-low mortgage rates, the market is heating up, making now one of the most favorable times in history to buy a home. 

Home Sales

in millions

While home sales declined 1.5% from last month to 4.55 million units, year-over-year increases are 9.6% higher. Lawrence Yun, NAR chief economist, states, “home sales have moved markedly higher with eleven consecutive months of gains over the same month a year earlier.”

Home Price

in thousands

Thanks to a decline in distressed properties on the market (which includes short sales and foreclosures that traditionally sell for 15%–20% less on average compared to non-distressed homes), the median home price rose 5.1% from last month, and 7.9% compared to a year earlier to $182,600. This is the third consecutive month of year-over-year price gains, which hasn’t been seen since March to May of 2006, a period of peak performance in the housing market.

Inventory- Month's Supply

in months

Housing inventory remained stable with a 6.6-month supply on the market, 20% below year-ago levels. This marks the sixth consecutive month of inventory at a 6-month supply, the threshold for a balanced market, giving both buyers and sellers an equal advantage. Movement out of the three-year buyer’s market is imperative toward reaching a full-scale housing market recovery.

Source: National Association of Realtors

Interest Rates
Mortgage rates around 3.66% continue to boost home affordability—some of the lowest rates on record since 1971. These rates may be as close to the bottom as they will get, adding to the urgency to buy a home now while these record lows hold.



This Month's Video


Topics For Home Owners, Buyers & Sellers
As many markets continue to heat up, both buyers and sellers are facing multiple offer situations. If you’re a buyer in a bidding war, here are some tips to give you an edge:

• Get pre-approved for your loan. Get pre-approved by a local lender and attach a copy to your offer.
• Think unevenly. An uneven offer price such as $251,000 instead of $250,000, will stand out from the others, and it may just beat an offer that came in at a slightly lower figure with an even bid.
• Be flexible. The fewer contingencies and the cleaner the offer, the better the chance you have to win a bidding war. Have your agent find out the seller’s ideal closing date, and offer to make it happen.
• Hide your hand. Determine the highest bid you’re trying to beat, and try to come in over that rather than offering the most you can afford.
• Don’t get distracted. If you find yourself caught up in the excitement of a bidding war, step back and reassess if the home has everything you want and need.

Contact me, your local real estate expert, for information about what's going on in our area.

Brought to you by KW Research. For additional graphs and details, please see the This Month in Real Estate PowerPoint Report.

The opinions expressed in This Month in Real Estate 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 Month in Real Estate 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., does not 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., will not be liable for any loss or damage caused by your reliance on information contained in This Month in Real Estate.

Smitha and Rahul 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.
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

June 2012-Market Update

Signs of recovery continue in the housing market, demonstrated by improvements in the number of homes sold and national home prices. For the first time since June 2011, the median home price has exceeded $175,000. Continued strength in economic indicators, employment, and consumer confidence could help to bring full recovery to the housing market. Relaxation in financial institution’s tight lending standards will also significantly help the recovery.
“With the tight lending environment it’s a good idea to consult with a Realtor about mortgages and program options in the area, and tips for boosting credit scores well in advance of making an offer on a home,” National Association of Realtors President Moe Veissi advises.  “It helps to go into the process knowing what it takes to succeed.”
With rents on the rise, buying has become an increasingly attractive option due to home affordability, or the percentage income it takes to pay the mortgage, is the most favorable in market history. Current record interest rates, which factor into affordability, will not last forever, so buyers wanting to take advantage of this unique time in history will want to act before rates rise. 
Home Sales

In Millions

Home sales increased 10% from a year ago to 4.62 million units, which is also up 3.4% from the previous month. A strengthening economy is improving consumer confidence and drawing an increasing number of people into the market. Some local markets are experiencing a shift back into a seller’s market, leading to a shortage of homes available for sale, multiple offers, and higher prices. As more markets follow suit, national home sales could continue to increase.

.
Home Price

In Thousands

Thanks to a decline in distressed properties (which includes short sales and foreclosures that traditionally sell for 15%–20% less on average compared to non-distressed homes), the median home price rose 10% year-over-year to $177,400. This is the first consecutive month-to-month increase in home prices since June and July of 2010. NAR Chief Economist Lawrence Yun said “For the year, we’re looking at a modest overall price gain of 1%–2%, with stronger improvements in 2013.”

Inventory- Month's Supply

In Months

Housing inventory increased to 6.6 months supply, which is 28% below year-ago levels. This marks the fifth consecutive month of inventory near a six-month supply, which is the threshold of a balanced market. It is also significantly below the previous three years, in which year-end month’s supply ranged from 8.2–9.5. This indicates movement out of this deeply entrenched buyer’s market and is an important step toward a full-scale housing market recovery.

Source: National Association of Realtors

Interest Rates
Mortgage rates continue to boost home affordability by remaining below 4%—some of the lowest rates on record since 1971. These rates may come as close to bottom as they can get, adding to the urgency to buy a home now while these record lows hold.



This Month's Video



Topics For Home Owners, Buyers & Sellers
Thinking about buying? Wondering what pushes others to jump off the fence and buy now?  Here is some insight into the top 3 reasons that impact a buyer’s sense of urgency:

• Excellent Market Conditions.  Interest rates are at record lows and home prices are bouncing along what experts believe to be the bottom – there has never been a more affordable time to buy a home.  With some local markets slipping into a seller’s market and reports of more following, the chance to cash in on this historic time may be narrowing.
• Having the Freedom to Move.  First time homebuyers often wait for their lease to expire, not realizing that buying sooner is an option. Repeat buyers wait to sell their house when leasing may be an option, giving them freedom to move up sooner.
• A Major Life Event.  Often a major milestone or development spurs on the need to purchase at a specific time.  Getting married and having children are two of the top events creating the need to buy now.

Contact us, your local real estate experts, for information about what's going on in our area.

Brought to you by KW Research. For additional graphs and details, please see the This Month in Real Estate PowerPoint Report.

The opinions expressed in This Month in Real Estate 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 Month in Real Estate 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., does not 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., will not be liable for any loss or damage caused by your reliance on information contained in This Month in Real Estate.

Smitha and Rahul 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.
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

Fantastic Investment Opportunity!

We recently listed this beautiful townhome in Morristown, just minutes away from everything… Downtown Morristown’s boutique shopping, dining, and cultural events. A commuter’s dream, just a walk away from the train to NYC. Currently leased until 10/2013, it’s a great opportunity for investors to purchase in an in-demand area. Check out the details on our website and call us with any questions or to schedule a private viewing!

44 Ridgedale Avenue #7, Morristown Court

These rock-bottom prices and rates won’t last long!

Experts are predicting that these prices and rates are the lowest it’s going to get and that both will soon be picking up. “Several housing experts are predicting that this year will be the last chance for bargain hunters to cash in on the best deals of the weak housing market.” More details:

Many of the bank-owned properties currently coming out of the foreclosure pipeline are being snapped up by investors who are fixing them up and renting them out — often to those who were displaced by the foreclosure of their own home. That has helped to lift prices on foreclosed properties, according to Alex Villacorte, the director of analytics for Clear Capital, which specializes in housing market valuations.
"That could have a significant impact on the market overall in terms of providing a rising floor to home values," he said.
In some markets hit hard by foreclosures, the turnaround in prices is already underway. Phoenix recorded an 8.4% jump in home prices during the three months ended April 30, compared with the three months ended January 31, according to Clear Capital.
"It's crazy," said Tanya Marchiol, founder of Team Investments, a Phoenix real estate investing firm. "Stuff I was selling six months ago for $60,000 to $80,000 is now $90,000 to $110,000."
Miami saw a 4.6% increase quarter-over-quarter through April, and Tampa, Fla., was up 4.4%, according to Clear Capital.
Goodbye 3.8% mortgage. In addition to home prices, mortgages could also move higher.
Mortgage rates have been at or near historic lows for much of the past six months. The average interest rate for a 30-year, fixed-rate mortgage has not topped 4.5% since July 2011 and this week, it hit 3.84%, a new low.
But rates aren't expected to remain at these record-low levels much longer. As the economy continues to recover, rates will move higher, said Doug Lebda, CEO of LendingTree, the online lending site. Although, he said, they will "stay very reasonable."
The Mortgage Bankers Association is forecasting that the 30-year fixed will hit 4.5% by the end of the year.
Greater demand for loans will help fuel the increase, according to Lebda.
Even though mortgage rates have been cheap, borrowing for home purchases has been sluggish. The Mortgage Bankers Association estimates that homebuyers will take out mortgage loans totaling about $415 billion this year, an increase of less than 3% compared with 2011. Next year, however, it forecasts that amount will almost double to $706 billion.

What does this mean for you? It means if you are considering buying a property for you, your family, or as an investment or an upgrade, the market is offering you an opportunity for a fraction of the historic cost! This is an opportunity you don’t want to miss. Even if you hadn’t been considering purchasing a property or wanted to buy 5 years down the road, taking advantage of the market now may make the best sense for your situation.
If you’d like to find out more and see if buying (or selling) a property makes sense for you, please give us a call or e-mail! We’re happy to help you make the right choice!

You can read the original article from CNN Money here.

May 2012-Market Update

The housing market and the overall economy are improving at modest rates nationally, and in some areas they have actually gained momentum. The Conference Board’s CEO confidence index is up a notable 14 points—from 49 last quarter to a current reading of 63. A reading of 50 is the threshold above which indicates an optimistic outlook and below indicates pessimism. Rapidly growing optimism is a good sign for future hiring and growth.
“The recovery is happening, though not at a breakout pace, but we have seen nine consecutive months of year-over-year sales increases,” NAR Chief Economist Lawrence Yun said. “Existing-home sales are moving up and down in a fairly narrow range that is well above the level of activity during the first half of last year. With job growth, low interest rates, bargain home prices, and an improving economy, the pent-up demand is coming to market and we expect housing to be notably better this year.”
As rents continue to rise, buying becomes a more and more attractive option as home affordability, or the percent of income it takes to pay the mortgage, continues to be among the most favorable in history. The current record interest rates, which factor into affordability, cannot last forever—buyers wanting to take advantage of this unique time in history will want to act before rates rise. 

Home Sales

In Millions

Home sales slipped 2.6% from the previous month to 4.48 million units, yet are 5.2% higher from a year ago. A strengthening economy is improving consumer confidence and drawing an increasing number of people into the market. In some local markets, there is not enough inventory of quality homes for buyers to purchase. As these markets see more new listings for their hungry buyers, national home sales could increase.

.
Home Price

In Thousands

Thanks to a decline in distressed properties, which sell for a 15%–20% less on average compared to non-distressed homes, the median home price rose 5.3% compared to the previous month and 2.6% compared to a year earlier to $163,800. This is the first time in 8 months that home prices have been up by over 1% month-to-month. NAR President Moe Veissi said, “In most areas over the long term, home prices have nowhere to go but up.”

Inventory- Month's Supply

In Months

Housing inventory remained stable from the previous month at 6.3 months supply and was 26% below year-ago levels. This marks the fourth consecutive month of inventory near a six-month supply, which is the threshold of a balanced market. Movement out of the deep buyer’s market that has persisted over the past three years is an important step that must precede a full-scale housing market recovery.

Source: National Association of Realtors

Interest Rates
Mortgage rates continue to boost home affordability by remaining below 4%—some of the lowest rates on record since 1971. These rates may have begun to find a bottom as there is not much more room to go down, adding to the urgency to buy a home now while these record lows hold.


This Month's Video



Topics For Home Owners, Buyers & Sellers
Pricing a listing at market value is a critical component to getting it sold. Here are a few of the advantages of pricing it right:

• Less Time on the Market. Homes that were priced at market value sold in half the number of days as homes that were overpriced.

• More Money. Pricing right when the home is first listed leads to sellers netting a higher percentage of their asking price, also referred to as the list-to-sell ratio.

• Less Hassle. When a home is priced right, it means that fewer buyers need to view the home to understand it is a good value—and that leads to fewer showings before getting an offer.

• Fewer Reductions. When a home is priced at market value, often it won’t need a price reduction. Depending on local market conditions, sometimes it will—either way, it will be less likely to require one if it is priced right to begin with.

• More Multiple Offers. Homes that are priced right are twice as likely to have multiple offers.  This can lead to a higher sold price and it puts the seller in the driver’s seat by providing more options to choose from.

Contact  Rahul & Smitha for information about what's going on in our area. 

Brought to you by KW Research. For additional graphs and details, please see the This Month in Real Estate PowerPoint Report. 

The opinions expressed in This Month in Real Estate 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 Month in Real Estate 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., does not 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., will not be liable for any loss or damage caused by your reliance on information contained in This Month in Real Estate.

Smitha and Rahul 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.
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

These rock-bottom prices and rates won't last long!

Experts are predicting that these prices and rates are the lowest it’s going to get and that both will soon be picking up. “Several housing experts are predicting that this year will be the last chance for bargain hunters to cash in on the best deals of the weak housing market.” More details:

Many of the bank-owned properties currently coming out of the foreclosure pipeline are being snapped up by investors who are fixing them up and renting them out -- often to those who were displaced by the foreclosure of their own home. That has helped to lift prices on foreclosed properties, according to Alex Villacorte, the director of analytics for Clear Capital, which specializes in housing market valuations.
"That could have a significant impact on the market overall in terms of providing a rising floor to home values," he said.
In some markets hit hard by foreclosures, the turnaround in prices is already underway. Phoenix recorded an 8.4% jump in home prices during the three months ended April 30, compared with the three months ended January 31, according to Clear Capital.
"It's crazy," said Tanya Marchiol, founder of Team Investments, a Phoenix real estate investing firm. "Stuff I was selling six months ago for $60,000 to $80,000 is now $90,000 to $110,000."
Miami saw a 4.6% increase quarter-over-quarter through April, and Tampa, Fla., was up 4.4%, according to Clear Capital.
Goodbye 3.8% mortgage. In addition to home prices, mortgages could also move higher.
Mortgage rates have been at or near historic lows for much of the past six months. The average interest rate for a 30-year, fixed-rate mortgage has not topped 4.5% since July 2011 and this week, it hit 3.84%, a new low.
But rates aren't expected to remain at these record-low levels much longer. As the economy continues to recover, rates will move higher, said Doug Lebda, CEO of LendingTree, the online lending site. Although, he said, they will "stay very reasonable."
The Mortgage Bankers Association is forecasting that the 30-year fixed will hit 4.5% by the end of the year.
Greater demand for loans will help fuel the increase, according to Lebda.
Even though mortgage rates have been cheap, borrowing for home purchases has been sluggish. The Mortgage Bankers Association estimates that homebuyers will take out mortgage loans totaling about $415 billion this year, an increase of less than 3% compared with 2011. Next year, however, it forecasts that amount will almost double to $706 billion.

What does this mean for you? It means if you are considering buying a property for you, your family, or as an investment or an upgrade, the market is offering you an opportunity for a fraction of the historic cost! This is an opportunity you don’t want to miss. Even if you hadn’t been considering purchasing a property or wanted to buy 5 years down the road, taking advantage of the market now may make the best sense for your situation.
If you’d like to find out more and see if buying (or selling) a property makes sense for you, please give us a call or e-mail! We’re happy to help you make the right choice!

You can read the original article from CNN Money here.

Smitha and Rahul 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.
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

Foreclosure is Not the Only Option. Why a Short Sale can be a Better Option than a Foreclosure?

Headlines today are filled with stories about homeowners in financial distress—people who face a lender’s foreclosure on their home.

Do You Owe More on your Mortgage than the House is Worth and Can't Afford the Payments? Foreclosure is Not the Only Option. You might be able to Sell it for Less than you Owe - Without Having to Pay the Lender the Difference.

 Consider a Short Sale Instead. Here are the benefits compared to a Foreclosure:

• We will List and Sell Your House.
• The Lender Will Pay the Realtor Fee.
• And You Get to Protect Your Credit Score.

Call Us Today at 973-953-7777 for a Confidential Consultation to see if you qualify for a Short Sale!



Smitha and Rahul 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. 

Smitha  and Rahul and their team specialize in North-Central New Jersey and 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