What Do Experts See on the Horizon for the Second Half of the Year?

 

As we move into the latter half of the year, questions about what’s to come are top of mind for buyers and sellers. Near record-low mortgage rates coupled with rising home price appreciation kicked off a robust housing market in the first half of 2021, but what does the forecast tell us about what’s on the horizon?

Mortgage Rates Will Likely Increase, but Remain Low

Many experts are projecting a rise in interest rates. The latest Quarterly Forecast from Freddie Mac states:

“We forecast that mortgage rates will continue to rise through the end of next year. We estimate the 30-year fixed mortgage rate will average 3.4% in the fourth quarter of 2021, rising to 3.8% in the fourth quarter of 2022.”

However, even as mortgage rates rise, the anticipated increase is expected to be modest at most, and still well below historical averages. Rates remaining low is good news for homebuyers who are looking to maximize their purchasing power. The same report from Freddie Mac goes on to say:

“While higher mortgage rates will help slow the pace of home sales and moderate house price growth, we expect overall housing market activity will remain robust. Our forecast has total home sales, the sum of new and existing home sales, at 7.1 million in 2021….”

Home Price Appreciation Will Continue, but Price Growth Will Likely Slow

Joe Seydl, Senior Markets Economist at J.P. Morgan, projects home prices to continue rising as well, indicating buyers interested in purchasing a home should do so sooner rather than later. Waiting for rates or home prices to fall may not be wise:

“Homebuyers—interest rates are still historically low, though they are inching up. Housing prices have spiked during the last six-to-nine months, but we don’t expect them to fall soon, and we believe they are more likely to keep rising. If you are looking to purchase a new home, conditions now may be better than 12 months hence.”

Other experts remain optimistic about home prices, too. The graph below highlights 2021 home price forecasts from multiple industry leaders:

Inventory Remains a Challenge, but There’s Reason To Be Optimistic

Home prices are rising, but they should moderate as more housing inventory comes to market. George Ratiu, Senior Economist at realtor.com, notes there are signs that we may see the current inventory challenges lessen, slowing the fast-paced home price appreciation and creating more choices for buyers:

“We have seen more new listings this year compared with 2020 in 11 of the last 13 weeks. The influx of new sellers over the last couple of months has been especially helpful in slowing price gains.”

New home starts are also showing signs of improvement, which further bolsters hopes of more options coming to market. Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), writes:

“As an indicator of the economic impact of housing, there are now 652,000 single-family homes under construction. This is 28% higher than a year ago.”

Finally, while it may not fundamentally change the market conditions we’re currently experiencing, another reason to be optimistic more homes might come to market: our improving economy. Mark Fleming, Chief Economist at First American, notes:

“A growing economy in the summer months has multiple implications for the housing market. Growing consumer confidence, a stronger labor market, and higher wages bode well for housing demand. While a growing economy and improving public health conditions may also spur hesitant existing owners to list their homes for sale, it’s unlikely to significantly ease the super sellers’ market conditions.”

Bottom Line

As we look at the forecast for prices, interest rates, inventory, and home sales, experts remain optimistic about what’s on the horizon for the second half of 2021. Contact your trusted real estate advisor to discuss how to navigate the market together in the coming months.

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With their Multi-Cultural Background, over 35 years of combined experience selling Real Estate and because they are Licensed in New Jersey, New York and California, Rahul, Smitha and their team can offer global reach. They have lots of experience representing a diverse group of clients, from Local New Jersey Buyers & Sellers to Relocation and International/Foreign Buyers, Sellers and Investors. Rahul and Smitha are exceptionally well-respected Realtors in the industry with high ethical standards and GLOWING REVIEWS. Their team offers a high level of expertise, innovative technology and cutting-edge real estate marketing and sales solutions.  They specialize in Morris, Somerset, Essex and Union counties.

www.SRRealEstateGroup.com | www.Morris-Homes.com | www.TheTownhouseExpert.com

What To Expect as Appraisal Gaps Grow

 

In today’s real estate market, low inventory and high demand are driving up home prices. As many as 54% of homes are getting offers over the listing price, based on the latest Realtors Confidence Index from the National Association of Realtors (NAR). Shawn Telford, Chief Appraiser at CoreLogic, elaborates:

“The frequency of buyers being willing to pay more than the market data supports is increasing.”

While this is great news for today’s sellers, it can be tricky to navigate if the price of your contract doesn’t match up with the appraisal for the house. It’s called an appraisal gap, and it’s happening more in today’s market than the norm.

According to recent data from CoreLogic, 19% of homes had their appraised value come in below the contract price in April of this year. That’s more than double the percentage in each of the two previous Aprils.

The chart below uses the latest insights from NAR’s Realtors Confidence Index to showcase how often an issue with an appraisal slowed or stalled the momentum of a house sale in May of this year compared to May of last year. If an appraisal comes in below the contract price, the buyer’s lender won’t loan them more than the house’s appraised value. That means there’s going to be a gap between the amount of loan the buyer can secure and the contract price on the house.

In this situation, both the buyer and seller have a vested interest in making sure the sale moves forward with little to no delay. The seller will want to make sure the deal closes, and the buyer won’t want to risk losing the home. That’s why it’s common for sellers to ask the buyer to make up the difference themselves in today’s competitive market.

Bottom Line

Whether you’re buying or selling, your real estate agent is your ally. They’re with you throughout the process and are there to help you navigate the unexpected, including potential appraisal gaps.

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With their Multi-Cultural Background, over 35 years of combined experience selling Real Estate and because they are Licensed in New Jersey, New York and California, Rahul, Smitha and their team can offer global reach. They have lots of experience representing a diverse group of clients, from Local New Jersey Buyers & Sellers to Relocation and International/Foreign Buyers, Sellers and Investors. Rahul and Smitha are exceptionally well-respected Realtors in the industry with high ethical standards and GLOWING REVIEWS. Their team offers a high level of expertise, innovative technology and cutting-edge real estate marketing and sales solutions.  They specialize in Morris, Somerset, Essex and Union counties.

www.SRRealEstateGroup.com | www.Morris-Homes.com | www.TheTownhouseExpert.com

Americans See Real Estate as a Better Investment Than Stocks or Gold

 

Last month, in a post on the Liberty Street Economics blog, the Federal Reserve Bank of New York noted that Americans believe buying a home is definitely or probably a better investment than buying stocks. Last week, a Gallup Poll reaffirmed those findings.

In an article on the current real estate market, Gallup reports:

“Gallup usually finds that Americans regard real estate as the best long-term investment among several options — seeing it as superior to stocks, gold, savings accounts and bonds. This year, 41% choose real estate as the best investment, up from 35% a year ago, with stocks a distant second.”

Here’s the breakdown:

The article goes on to say:

“The 41% choosing real estate is the highest selecting any of the five investment options in the 11 years Gallup has asked this question.”

Is real estate really a secure investment right now?

Some question American confidence in real estate as a good long-term investment right now. They fear that the build-up in home values may be mirroring what happened right before the housing crash a little more than a decade ago. However, according to Merrill Lynch, J.P. Morgan, Morgan Stanley, and Goldman Sachs, the current real estate market is strong and sustainable.

As Morgan Stanley explains to their clients in a recent Thoughts on the Market podcast:

“Unlike 15 years ago, the euphoria in today’s home prices comes down to the simple logic of supply and demand. And we at Morgan Stanley conclude that this time the sector is on a sustainably, sturdy foundation . . . . This robust demand and highly challenged supply, along with tight mortgage lending standards, may continue to bode well for home prices. Higher interest rates and post pandemic moves could likely slow the pace of appreciation, but the upward trajectory remains very much on course.”

Bottom Line

America’s belief in the long-term investment value of homeownership has been, is, and will always be, very strong.

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With their Multi-Cultural Background, over 35 years of combined experience selling Real Estate and because they are Licensed in New Jersey, New York and California, Rahul, Smitha and their team can offer global reach. They have lots of experience representing a diverse group of clients, from Local New Jersey Buyers & Sellers to Relocation and International/Foreign Buyers, Sellers and Investors. Rahul and Smitha are exceptionally well-respected Realtors in the industry with high ethical standards and GLOWING REVIEWS. Their team offers a high level of expertise, innovative technology and cutting-edge real estate marketing and sales solutions.  They specialize in Morris, Somerset, Essex and Union counties.

www.SRRealEstateGroup.com | www.Morris-Homes.com | www.TheTownhouseExpert.com

Just Listed: 117 High Street, Hackettstown, NJ

 

Scroll the pics below and contact us for a private tour!

4 BD, 2.1 BA, 2-Car Garage | Offered at $399,000

OPEN HOUSE: Sunday, 5/23, 1-4 PM

Call Rahul 973-615-6504 for additional info & to schedule a private showing.

About 117 High Street, Hackettstown

Lots of wonderful updates, custom features in this beautiful home: newer hardwood floors on the 1st floor, new Hardie board siding, newer roof, newer A/C & natural gas heat, gorgeous remodeled kitchen with all appliances included, and a stunning updated master bath. Picture-perfect front porch with a fantastic newer backyard patio with firepit and fence for privacy.

Inside, an inviting family room with standalone gas fireplace opens to the center island kitchen via custom handmade columns. Fab mudroom/laundry includes custom built-ins. 2nd floor wood floors refinished, bedrooms all redone including large closets & newer insulation. Radiant floor heating in the master bath! Huge finished attic rec room (2018): ideal for work, play, or a guest space. Updated electrical system too!

• Central A/C
• Detached 2-car garage + driveway parking
• Taxes: $8154 approx. (2020)
• Year built: 1850 approx.

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With their Multi-Cultural Background, over 35 years of combined experience selling Real Estate and because they are Licensed in New Jersey, New York and California, Rahul, Smitha and their team can offer global reach. They have lots of experience representing a diverse group of clients, from Local New Jersey Buyers & Sellers to Relocation and International/Foreign Buyers, Sellers and Investors. Rahul and Smitha are exceptionally well-respected Realtors in the industry with high ethical standards and GLOWING REVIEWS. Their team offers a high level of expertise, innovative technology and cutting-edge real estate marketing and sales solutions.  They specialize in Morris, Somerset, Essex and Union counties.

www.SRRealEstateGroup.com | www.Morris-Homes.com | www.TheTownhouseExpert.com

Millennials are Ready to Take Over the Real Estate Market

 Written by Brianna Crane, originally on Axios

Illustration: Sarah Grillo/Axios

Over the last several years, millennials have rented to stay nimble and keep work opportunities open. Now, they're ready to buy.

Why it matters: About 4.8 million millennials are turning 30 in 2021, and many are expected to enter the home-buying game if they haven't already.

• This wave of new buyers will have the opportunity to build and pass on wealth, and shape the market for years to come.

Flashback: Leading up to the financial crisis of 2008, many people bought homes they couldn't afford, allowing developers to gobble up foreclosures, David Kennedy, president of Charlotte-based Canopy MLS, tells Axios.

• We're still feeling the impacts of that, but it allowed first-time millennial buyers to head into the market with the knowledge their first home may not be their dream home.
• They're more open to multi-family options like condos and quadraplexes, so they can start building wealth despite today's low inventory of single-family homes.

The big picture: Millennials are getting older and entering a new stage of life, casting off their long-held moniker as the "renter generation," Realtor.com senior economist George Rati says.

• The oldest millennials are turning 40 this year, and they want more space for their growing families.
• First-time buyers are also ready to build equity, have more space, and take advantage of low relatively mortgage rates.

The state of play: Homebuyers are entering a competitive market, with inventory down and home prices surging across the board. Low mortgage rates give buyers more power, but there has to be a home to buy to take advantage of current deals.

By the numbers, per a Realtor.com study:

• 43% of first-time millennial homebuyers have been looking for more than a year.
• 44% say they still need more money for a down payment and other closing costs.
• 34% say they can't find a house in their budget.

Where they're going: Millennials are leaving larger cities like New York and heading west or south. Migration patterns, according to SmartAsset, show five of the 10 most popular states among millennials have no income tax.

Data: U.S. Census Bureau migration data analysis by SmartAsset; Chart: Axios Visuals

What millennials want: Rati says the average millennial buyer wants a house with a nice backyard in a desirable, quiet location.

• A garage, updated kitchens and bathrooms, good schools, and attractions nearby are also common wishlist items.
• Millennials with money want to spend it. Grandfather Homes president Matt Ewers, who builds $1M+ custom homes, says he's noticed millennial buyers "are willing to spend it as they make it," adding amenities like $150,000 pools during the building process.
• "They're not all investment bankers either," he says. Millennials who are able to afford the bonus luxuries are involved in anything from sales to multiple side hustles.

The bottom line: "Looking ahead," Rati says, "millennials will continue to be dominant participants in housing markets."

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With their Multi-Cultural Background, over 35 years of combined experience selling Real Estate and because they are Licensed in New Jersey, New York and California, Rahul, Smitha and their team can offer global reach. They have lots of experience representing a diverse group of clients, from Local New Jersey Buyers & Sellers to Relocation and International/Foreign Buyers, Sellers and Investors. Rahul and Smitha are exceptionally well-respected Realtors in the industry with high ethical standards and GLOWING REVIEWS. Their team offers a high level of expertise, innovative technology and cutting-edge real estate marketing and sales solutions.  They specialize in Morris, Somerset, Essex and Union counties.

www.SRRealEstateGroup.com | www.Morris-Homes.com | www.TheTownhouseExpert.com

3 Graphs Showing Why You Should Sell Your House Now

 

There’s no doubt that 2021 is the year of the seller when it comes to the housing market. If you’re a homeowner thinking of moving to better suit your changing needs, now is the perfect time to do so. Low mortgage rates are in your favor when you’re ready to purchase your dream home, and high buyer demand may give you the leverage you need to negotiate the best contract terms on the sale of your house. Here’s a look at what’s driving this sellers’ advantage and why there’s so much opportunity for homeowners who are ready to move this season.

1. Historically Low Inventory

The National Association of Realtors (NAR) explains:

 “Total housing inventory at the end of March amounted to 1.07 million units, up 3.9% from February’s inventory . . . Unsold inventory sits at a 2.1-month supply at the current sales pace, marginally up from February’s 2.0-month supply and down from the 3.3-month supply recorded in March 2020.”

Even with a slight rise in the number of houses for sale this spring, inventory remains near an all-time low (See graph below):

High buyer interest is creating a major imbalance between supply and demand, but as the small uptick in inventory shows, sellers are beginning to reenter the market. Selling your house now enables you to take advantage of buyer demand and get the most attention for your house – before more listings come to the market later this year.

2. Frequent Bidding Wars

As a result of the supply and demand imbalance, homebuyers are entering bidding wars at an accelerating rate. NAR reports the average number of bids received on the most recently closed sales is 4.8 offers. This number has doubled since the first quarter of 2020 (See graph below):

As buyers face increasingly tough competition while searching for homes to purchase, they’re more likely to be flexible and generous in their negotiations. This gives a seller the opportunity to choose the best buyer for their needs and be selective about things like time to close, contingencies, renovations, and more. Working with your trusted agent is the best way to determine how to navigate the negotiation process when selling your house.

3. Days on the Market

In today’s market, sellers aren’t waiting very long to find a buyer for their house, either. NAR reports:

“Properties typically remained on the market for 18 days in March, down from 20 days in February and from 29 days in March 2020. 83% of the homes sold in March 2021 were on the market for less than a month.” (See graph below):

NAR Chief Economist Lawrence Yun explains:

“The sales for March would have been measurably higher, had there been more inventory…Days-on-market are swift, multiple offers are prevalent, and buyer confidence is rising.”

Bottom Line

If you’re thinking about moving, these three graphs clearly show that it’s a great time to sell your house. Contact a real estate professional today to learn more about the opportunities in your local area.

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With their Multi-Cultural Background, over 35 years of combined experience selling Real Estate and because they are Licensed in New Jersey, New York and California, Rahul, Smitha and their team can offer global reach. They have lots of experience representing a diverse group of clients, from Local New Jersey Buyers & Sellers to Relocation and International/Foreign Buyers, Sellers and Investors. Rahul and Smitha are exceptionally well-respected Realtors in the industry with high ethical standards and GLOWING REVIEWS. Their team offers a high level of expertise, innovative technology and cutting-edge real estate marketing and sales solutions.  They specialize in Morris, Somerset, Essex and Union counties.

www.SRRealEstateGroup.com | www.Morris-Homes.com | www.TheTownhouseExpert.com

How Much Time Do You Need To Save for a Down Payment?

 

One of the biggest hurdles homebuyers face is saving for a down payment. As you’re budgeting and planning for your home purchase, you’ll want to understand how much you’ll need to put down and how long it will take you to get there. The process may actually move faster than you think.

Using data from the U.S. Department of Housing and Urban Development (HUD) and Apartment List, we can estimate how long it might take someone earning the median income and paying the median rent to save up for a down payment on a median-priced home. Since saving for a down payment can be a great time to practice budgeting for housing costs, this estimate also uses the concept that a household should not pay more than 28% of their total income on monthly housing expenses.

According to the data, the national average for the time it would take to save for a 10% down payment is right around two and a half years (2.53). Residents in Iowa can save for a down payment the fastest, doing so in just over one year (1.31). The map below illustrates this time (in years) for each state:

What if you only need to save 3%?

What if you’re able to take advantage of one of the 3% down payment programs available? It’s a common misconception that you need a 20% down payment to buy a home, but there are actually more affordable options and down payment assistance programs available, especially for first-time buyers. The reality is, saving for a 3% down payment may not take several years. In fact, it could take less than a year in most states, as shown in the map below:

Bottom Line

Wherever you are in the process of saving for a down payment, you may be closer to your dream home than you think. Talk to your local real estate professional to learn more about the down payment options available in your area and how they support your plans.

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With their Multi-Cultural Background, over 35 years of combined experience selling Real Estate and because they are Licensed in New Jersey, New York and California, Rahul, Smitha and their team can offer global reach. They have lots of experience representing a diverse group of clients, from Local New Jersey Buyers & Sellers to Relocation and International/Foreign Buyers, Sellers and Investors. Rahul and Smitha are exceptionally well-respected Realtors in the industry with high ethical standards and GLOWING REVIEWS. Their team offers a high level of expertise, innovative technology and cutting-edge real estate marketing and sales solutions.  They specialize in Morris, Somerset, Essex and Union counties.

www.SRRealEstateGroup.com | www.Morris-Homes.com | www.TheTownhouseExpert.com

Should I Buy Now or Wait?

 

Highlights

• If you’re thinking that waiting a year or two to purchase a home might mean you’ll save some money, think again.
• Mortgage interest rates are currently very low, but experts across the board are forecasting increases in both home prices and interest rates.
• Buying a home now means you’ll spend less in the long run. Contact a local real estate professional to put your plans in motion before home prices and mortgage rates climb even higher.

Bottom Line

Thanks to low mortgage rates, the spring housing market’s in bloom for buyers – but these favorable conditions may not last for long. Contact your local real estate professional today to start the homebuying process while your purchasing power is still holding strong.

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With their Multi-Cultural Background, over 35 years of combined experience selling Real Estate and because they are Licensed in New Jersey, New York and California, Rahul, Smitha and their team can offer global reach. They have lots of experience representing a diverse group of clients, from Local New Jersey Buyers & Sellers to Relocation and International/Foreign Buyers, Sellers and Investors. Rahul and Smitha are exceptionally well-respected Realtors in the industry with high ethical standards and GLOWING REVIEWS. Their team offers a high level of expertise, innovative technology and cutting-edge real estate marketing and sales solutions.  They specialize in Morris, Somerset, Essex and Union counties.

www.SRRealEstateGroup.com | www.Morris-Homes.com | www.TheTownhouseExpert.com

Exclusive Listing: 35 F Huston Taylor Court, Parsippany, NJ

 

More pics coming soon!

3 BD, 2.1 BA, 1-Car Garage | Offered at $469,900

PUBLIC OPEN HOUSE: Sunday, 3/7, 3-5 PM

Not in the MLS! Call Smitha 973-953-7777 for additional info & to schedule a private showing.

Hurry, Glenmont Commons homes go quickly and this one is no different! You'll love the wood floors, granite counter tops in the kitchen, jetted tub, updated main bath and powder room, and the finished walkout basement. This bright, spacious townhome is lovingly maintained, featuring fresh interior paint, brand new washer & dryer, and newer carpet in the basement and on the bedroom level. The master suite also boasts organized closets!

Glenmont Commons is a peaceful community close to Routes 10 and 202 (Speedwell Ave) and Interstates 80 and 287. Just 3 miles to the Mt. Tabor train station for commuters with tons of shopping, dining, businesses, recreation nearby! Central location - enjoy being close to everything Parsippany, Denville, Morris Plains, Hanover Twp, and Morristown have to offer.

 

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With their Multi-Cultural Background, over 35 years of combined experience selling Real Estate and because they are Licensed in New Jersey, New York and California, Rahul, Smitha and their team can offer global reach. They have lots of experience representing a diverse group of clients, from Local New Jersey Buyers & Sellers to Relocation and International/Foreign Buyers, Sellers and Investors. 

Rahul and Smitha are exceptionally well-respected Realtors in the industry with high ethical standards and GLOWING REVIEWS. Their team offers a high level of expertise, innovative technology and cutting-edge real estate marketing and sales solutions.  They specialize in Morris, Somerset, Essex and Union counties.

www.SRRealEstateGroup.com | www.Morris-Homes.com | www.TheTownhouseExpert.com

Exclusive Listing: 42 Huntley Road, Summit, NJ

 

Scroll through the photos above! More pics coming soon.

3 BD, 2 BA, 1-Car Garage | Offered at $699,900

Not in the MLS! Call Smitha 973-953-7777 for additional info & to schedule a private showing.

This charming home is overflowing with charm and special features. Its ranch-style layout is ideal for those who prefer one-floor living, but it also comes with a finished basement for that extra flex space we're all craving these days!

Inside you'll love the wood floors and beams on the main level, the updated baths (including the relaxing soaking tub), a gorgeous stone fireplace in the living room, and a cozy basement fireplace too. 

Outside an amazing outdoor space boasts a spacious multi-level paver patio, stone walls, built-in grill, outdoor storage, and looks out on the fenced yard and trees behind. Plus plenty of driveway parking in addition to the 1-car detached garage.

 

Prime Location

With its excellent Summit location, everything you want is close by. Good proximity to train station & freeways, it's perfect for commuters. Tons of conveniences and amenities in this area!

• ½ mile from bus stop/ NJ Transit line that runs to downtown Summit.
• 5 mins to downtown Summit, 10 mins to downtown Millburn
• 5-10 minutes to excellent public schools (K-12)
• 6 mins to Summit or Short Hills train stations
• 7 mins to the Springfield Community Pool & 6 mins to Summit Family Aquatic Center
• 7 mins to the Summit Public Library
• 9 mins to the Mall at Short Hills and less than 15 mins to the busy Highway 22 shopping corridor in Springfield
• About 10 mins to Garden State Pkwy
• Close to Rt. 24, Rt. 82/Morris Ave, Rt. 124, and I-78
• Near outdoor recreation (aboretums, Summit Park Line, Brian & Hidden Valley Parks)

 

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With their Multi-Cultural Background, over 35 years of combined experience selling Real Estate and because they are Licensed in New Jersey, New York and California, Rahul, Smitha and their team can offer global reach. They have lots of experience representing a diverse group of clients, from Local New Jersey Buyers & Sellers to Relocation and International/Foreign Buyers, Sellers and Investors. 

Rahul and Smitha are exceptionally well-respected Realtors in the industry with high ethical standards and GLOWING REVIEWS. Their team offers a high level of expertise, innovative technology and cutting-edge real estate marketing and sales solutions.  They specialize in Morris, Somerset, Essex and Union counties. 

www.SRRealEstateGroup.com | www.Morris-Homes.com | www.TheTownhouseExpert.com

Exclusive Listing: 606 Knollwood Court, Denville, NJ

 

2 BD, 2.1 BA, 1-Car Garage | Offered at $369,900

Exclusive listing, not in the MLS. Questions or to schedule a private visit, contact Smitha: 973-953-7777.

This spacious Newbury model in Berkshire Hills features an open main level for comfortable living and easy entertaining. Great location for commuters approx. 2 miles to the Dover train station for the train to NYC, and minutes to dining, shopping, and major routes like 10, 46, and Interstates 287 & 80.

The first floor features open living & dining rooms and kitchen with a private deck, laundry, powder room, and direct access to the 1-car garage. The kitchen includes a breakfast bar, granite counter tops, and a pantry too! Upstairs two gracious bedrooms await including a master suite with a walk-in closet, 2nd closet, and cathedral ceiling. Finally, a finished walkout basement offers a large flex area for recreation, work/study, or spare sleeping area, plus storage and sliders to a private patio.

• Gas heat, central A/C, plus driveway parking. Wonderful community pool and playground!
• Pets allowed. (Some restrictions may apply. Please call Association.).
• Maintenance Fee: $345/month (Application fee may apply. Please call Association.).
• Taxes: $8084 approx. (2020)
• A home to build a dream on!

Scroll the photos below and contact us for a private tour! Smitha: 973-953-7777.

How Much Leverage Do Today’s House Sellers Have?

 

 

The housing market has been scorching hot over the last twelve months. Buyers and their high demand have far outnumbered sellers and a short supply of houses. According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), sales are up 23.7% from the same time last year while the inventory of homes available for sale is down 25.7%. There are 360,000 fewer single-family homes for sale today than there were at this time last year. This increase in demand coupled with such limited supply is leading to more bidding wars throughout the country. 

Rose Quint, Assistant Vice President for Survey Research with the National Association of Home Builders (NAHB), recently reported: 

“The number one reason long-time searchers haven’t made a home purchase is not because of their inability to find an affordably-priced home, but because they continue to get outbid by other offers.” 

A survey in the NAHB report showed that 40% of buyers have been outbid for a home they wanted to purchase. This is more than twice the percentage in 2019, which was 19%.

 

What does this mean for sellers today?

It means sellers have tremendous leverage when negotiating with buyers. In negotiations, leverage is the power that one side may have to influence the other side while moving closer to their negotiating position. A party’s leverage is based on its ability to award benefits or eliminate costs on the other side. In today’s market, a buyer wants three things:

• To buy a home
• To buy now before prices continue to appreciate
• To buy now and take advantage of historically low mortgage rates while they last

These three buyer needs give the homeowner tremendous leverage when selling their house. Most realize this leverage enables the seller to sell at a good price. However, there may be another need the seller has that can be satisfied by using this leverage.

 

Here’s an example:

Odeta Kushi, Deputy Chief Economist at First American, recently identified a situation in which many sellers are finding themselves today: 

“As mortgage rates are expected to remain near 3%, millennials continue to form households and more existing homeowners tap their equity for the purchase of a better home…Many homeowners may want to upgrade, but do not for fear that they will be unable to find a home to buy.”

 

She then offers a possible solution:

While the fear of not being able to find something to buy will not disappear in a limited supply environment.” 

There’s no doubt many sellers would love to build a new home to perfectly fit their changing wants and needs. However, most builders require that they sell their house first. If the seller sells their home, where would they live while their new home is being constructed?

 

Going back to the concept of leverage:

As mentioned, buyers have compelling reasons to purchase a home now, and many homeowners have challenges to address if they want to sell. Perhaps they can make a deal to satisfy each party’s needs. But how? 

The seller may decide to sell their home to the buyer at today’s price, which will enable the purchaser to take advantage of current mortgage rates. In return, the buyer might lease the house back to the seller for a pre-determined length of time while the seller’s new home is being built. A true win-win negotiation. 

Not every buyer will agree to such a deal – but you only need one. 

That’s just one example of how a seller might be able to overcome a challenge because of the leverage they have in today’s market. Maybe you feel a need to make certain repairs before selling. Perhaps you need time to get permits or approvals for certain upgrades you made to the house. Whatever the challenge, you may be able to work it out.

 

Bottom Line

If you’re considering selling your house now but worry a huge obstacle stands in your way, contact a local real estate professional. Maybe with the leverage you currently have, you can negotiate a deal that will allow you to make the move of your dreams.

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With their Multi-Cultural Background, over 35 years of combined experience selling Real Estate and because they are Licensed in New Jersey, New York and California, Rahul, Smitha and their team can offer global reach. They have lots of experience representing a diverse group of clients, from Local New Jersey Buyers & Sellers to Relocation and International/Foreign Buyers, Sellers and Investors. 

Rahul and Smitha are exceptionally well-respected Realtors in the industry with high ethical standards and GLOWING REVIEWS. Their team offers a high level of expertise, innovative technology and cutting-edge real estate marketing and sales solutions.  They specialize in Morris, Somerset, Essex and Union counties. 

www.SRRealEstateGroup.com | www.Morris-Homes.com | www.TheTownhouseExpert.com

Anticipated Market Trends for 2021

 

 

 With more people at home than ever due to COVID-19, home trends and regional markets are changing as people adjust to their new home needs and look to an uncertain future.

 

Let’s look at the Anticipated Market Trends for 2021:

• Interest rates continue to be low with a slow increase.
• Average home prices will go up.
• A lot of new construction but housing inventory will still be low.
• Buyers’ interest will remain in the suburbs.

It’s a strong market for sellers. Here are 5 Reasons to Consider Selling in Early Spring:

• Less competition means your home stands out more.
• Buyers looking in winter and early spring tend to be serious buyers.
• Relocation transfers are common in January.
• Vendors tend to be less busy this time of year which could mean better service and turnaround times.
• Less pressure and more time for sellers to prepare before the Spring selling season goes into full swing.

Thinking of buying or selling and unsure how to proceed in these novel times? We're always available to consult so don't be afraid to call, text, or e-mail!

See original US News article.

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With their Multi-Cultural Background, over 35 years of combined experience selling Real Estate and because they are Licensed in New Jersey, New York and California, Rahul, Smitha and their team can offer global reach. They have lots of experience representing a diverse group of clients, from Local New Jersey Buyers & Sellers to Relocation and International/Foreign Buyers, Sellers and Investors. Rahul and Smitha are exceptionally well-respected Realtors in the industry with high ethical standards and GLOWING REVIEWS. Their team offers a high level of expertise, innovative technology and cutting-edge real estate marketing and sales solutions.  They specialize in Morris, Somerset, Essex and Union counties. www.SRRealEstateGroup.com | www.Morris-Homes.com | www.TheTownhouseExpert.com

Heroes: Save Money on Your Real Estate Sale/Purchase!

 

 

Heroes, Save Money on your Real Estate Transactions when you buy or sell a home through us, a Homes for Heroes ambassador!

Your job is to help others. Our job is to help YOU.

Visit ServingNJHeroes.com or contact us for info.

Thank you, Heroes, for all that you do!

   

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With their Multi-Cultural Background, over 35 years of combined experience selling Real Estate and because they are Licensed in New Jersey, New York and California, Rahul, Smitha and their team can offer global reach. They have lots of experience representing a diverse group of clients, from Local New Jersey Buyers & Sellers to Relocation and International/Foreign Buyers, Sellers and Investors. Rahul and Smitha are exceptionally well-respected Realtors in the industry with high ethical standards and GLOWING REVIEWS. Their team offers a high level of expertise, innovative technology and cutting-edge real estate marketing and sales solutions.  They specialize in Morris, Somerset, Essex and Union counties. www.SRRealEstateGroup.com | www.Morris-Homes.com | www.TheTownhouseExpert.com

Financial Fundamentals for Homebuyers

 

• When you’re thinking about buying a home, there are a few key steps to take before you even start to look at houses.
• From saving for your down payment to getting pre-approved for a mortgage, you’ll want to make sure you keep your financial plan on track from the beginning.
• Reach out to a local real estate professional and a trusted lender today to make sure you have the best possible guidance as you begin your homebuying process.

   

 

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With their Multi-Cultural Background, over 35 years of combined experience selling Real Estate and because they are Licensed in New Jersey, New York and California, Rahul, Smitha and their team can offer global reach. They have lots of experience representing a diverse group of clients, from Local New Jersey Buyers & Sellers to Relocation and International/Foreign Buyers, Sellers and Investors. 

Rahul and Smitha are exceptionally well-respected Realtors in the industry with high ethical standards and GLOWING REVIEWS. Their team offers a high level of expertise, innovative technology and cutting-edge real estate marketing and sales solutions.  They specialize in Morris, Somerset, Essex and Union counties. 

www.SRRealEstateGroup.com | www.Morris-Homes.com | www.TheTownhouseExpert.com

Exclusive New Construction Condos - Torre Alma in Playa Del Carmen, Mexico

Stunning new construction condos for sale for individuals or investors

Price: $145,500 - 170,730 | Total Sales: $1,815,461

 

 Torre Alma beckons individuals and investors who believe in luxury, design, and the incredible lifestyle that the Riviera Maya offers. The exclusive 5-level tower of modern homes includes two 1-bedroom lofts and 10 2-bedroom apartments, covered parking, elevator, and exclusive roof gardens. Offered by JV Desarrollos, who boast over 18 years of experience in residential condos, individuals and investors alike will appreciate the high capital gains and profitability these units supply. Experience the joys of living here year-round or invest in the ultimate vacation home! 

Just 7 minutes from the beach, this special location lets you can truly enjoy all the amenities and dazzling sights that this oasis offers. Be close to Plaza Las Americas, gyms, shops, convenience stores, and supermarkets. 

Playa Del Carmen is only 30 miles south of Cancun and central to the Riviera Maya. Visit the bluest waters and cenotes, dive incredible barrier reefs, explore ancient ruins and archaeological sites, play 18 holes at world-class courses, feel the thrill of ocean watersports, enjoy the exciting & active nightlife scene, and let it all go at a 5-star boutique spa. Whatever your passions, you're sure to find them here.

Inquiries, contact Smitha Ramchandani +1-973-953-7777 or SmithaR@SRRealEstateGroup.com.  

Building Amenities:

• Exclusive roof gardens
• Loft roof gardens include jacuzzis, powder room, grill, and outdoor shower.
• Common roof garden of 190 sq meters with recreational pool, swimming channel, jacuzzi, pool and barbecue area
• Security cameras
• Covered parking with electric gate

 

Sophisticated Homes, the Lifestyle You Deserve

Scroll the photos below!

 

Floor Plans

Scroll the floor plans below!

 

Prime Location in Playa Del Carmen, Quintana Roo

 

The Riviera Maya Lifestyle

 

JV Desarrollos

 

Inquiries about this property or other opportunities in the JV Desarrollos portfolio, contact Smitha Ramchandani +1-973-953-7777 or SmithaR@SRRealEstateGroup.com.

 

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With their Multi-Cultural Background, over 35 years of combined experience selling Real Estate and because they are Licensed in New Jersey, New York and California, Rahul, Smitha and their team can offer global reach. They have lots of experience representing a diverse group of clients, from Local New Jersey Buyers & Sellers to Relocation and International/Foreign Buyers, Sellers and Investors. Rahul and Smitha are exceptionally well-respected Realtors in the industry with high ethical standards and GLOWING REVIEWS. Their team offers a high level of expertise, innovative technology and cutting-edge real estate marketing and sales solutions.  They specialize in Morris, Somerset, Essex and Union counties. www.SRRealEstateGroup.com | www.Morris-Homes.com | www.TheTownhouseExpert.com

Exclusive Listing: 1201 Windsor Court, Denville, NJ

 

3 BD, 2.1 BA, 2-Car Garage | Offered at $410,000

Not in the MLS! Call Rahul 973-615-6504 for additional info & to schedule a private showing.

This gracious townhome features a private end unit location with a 1st floor master suite and convenient 1st floor den/office - ideal for working from home! The incredible floor plan features cathedral ceilings and open living & dining rooms idea for entertaining and comfortable everyday living. The sunny eat-in kitchen features granite counter tops, a breakfast nook, and pantry. Granite counter tops feature in the master bath as well. 2 spacious bedrooms on the 2nd floor with another full bath. The home also includes a private patio so you can get outside and enjoy the sunshine. Laundry in-unit plus an attached 2-car garage.

Conveniently located just 2 miles to the Dover train station for the train to New York City, and 1 mile to the Lakeland Bus Lines bus stop. Only minutes to shopping along Rts. 10 and 46 with quick access to I-287 and 80. Excellent Denville school system.

Monthly Maintenance: $345/month

Amenities: Playground, Outdoor Pool

Taxes: $9199 approx. (2020)

Year built: 1995 approx.

Scroll the photos below and contact us for a private tour! Rahul 973-615-6504

U.S. Existing-Home Sales Reach Highest Level in 14 Years

  PHOTO: TANNEN MAURY/EPA/SHUTTERSTOCK | A home for sale in Round Lake Heights, Ill., this week.

Ultralow interest rates and remote work during the coronavirus pandemic spurred demand

Written by Nicole Friedman for WSJ.com

U.S. home sales in 2020 surged to their highest level in 14 years, fueled by ultralow interest rates and a pandemic that sent buyers scrambling for more spacious homes to accommodate remote work. 

Robust home sales in the second half of the year surprised many economists while offering a rare bright spot for an economy run aground by closed businesses and mounting job losses during the Covid-19 pandemic. 

Pandemic-driven job losses were concentrated in lower-paying industries, while households with higher pay and the resources to buy a new home weathered the downturn better. The pandemic prompted many of them to leave big cities for suburbs or smaller towns, while record-low borrowing rates made the decision to trade up easier. Once shelter-in-place restrictions eased, sales took off in June and have rarely flagged since then. 

“It’s totally because of the pandemic,” said Brittany McCreary, who with her husband last month bought their first home, a four-bedroom stone farmhouse, in York, Pa., after leaving the Chicago area. “We’re glad we’re not renting anymore. We always wanted to buy.” 

Existing-home sales rose 0.7% in December from November to a seasonally adjusted annual rate of 6.76 million, the National Association of Realtors said Friday. The December sales marked a 22% increase from a year earlier. 

Strong house-buying demand is expected to continue this year, economists say, spurring more economic activity like home construction and sales of furniture and home goods. But a shortage of houses for sale is pushing home prices higher, making it costlier for renters trying to enter homeownership. 

“Homeowners are smiling, because they are seeing price increases,” said Lawrence Yun, NAR’s chief economist. “The frustration is coming from the first-time buyers.” 

Existing-home sales, which make up the bulk of the housing market, totaled 5.64 million in 2020, up 5.6% from 2019 and the highest level since the 2006 pace of 6.48 million, NAR said. 

Economists say today’s housing market is less risky than during that boom 14 years ago. Mortgage lending standards are tighter, and the supply of homes on the market is lower relative to demand. Many homeowners facing financial difficulties can also take advantage of current policies allowing them to skip monthly payments and make them up later. 

PHOTO: GINNIE RUDISILL | Brittany and Spencer McCreary bought their first home, a four-bedroom stone farmhouse, in York, Pa., in December.

The housing market was poised for a strong year in early 2020, as interest rates fell and the large millennial generation continued to age into its prime homebuying years. Home sales then plunged in the spring due to widespread shelter-in-place restrictions, before quickly rebounding in the summer and fall. 

“The real important driver has been the record low level of mortgage rates...which really enhanced affordability for home buyers,” said Frank Nothaft, chief economist at housing-data provider CoreLogic Inc. 

For the week ended Thursday, the average rate on a 30-year fixed rate mortgage was 2.77%, down from 3.6% a year earlier, said Freddie Mac. 

While demand has climbed, supply remains tight. Sellers remain wary of listing their homes for sale, partly due to concerns about virus transmission, real-estate agents say. 

There were 1.07 million homes for sale at the end of December, down 23% from December 2019, according to NAR. At the current sales pace, there was a 1.9-month supply of homes on the market at the end of December, a record low. 

That inventory crunch has spurred new-home construction. Housing starts, a measure of U.S. home-building, rose 5.8% in December from November to the highest seasonally adjusted annual rate since 2006, the Commerce Department said Thursday. Home builder confidence in the single-family housing market rose to record highs in the second half of last year, too. 

The median existing-home price rose 12.9% in December from a year earlier to $309,800, near the record $313,000 reached in October, NAR said. For the year overall, the median price rose 9% to $296,500. 

Still, the housing market’s momentum is expected to continue as mortgage rates remain low. Increased vaccination rates could prompt more sellers to enter the market later this year. 

“There’s still demand that’s not being met,” said Doug Duncan, chief economist for Fannie Mae. 

For the full year, existing-home sales rose the most in the South, at 7%, and in the Midwest, at 6.4%. The South also posted the biggest year-over-year gain in 2019. 

In Charlotte, N.C., demand is robust from buyers moving from other states seeking a cheaper cost of living, said Wendy Dickinson of Coldwell Banker. First-time buyers are also eager to take advantage of the low rates, she said. 

“When houses hit the market here, it’s very, very typical for them to go into multiple offers immediately,” she said. 

News Corp, owner of The Wall Street Journal, also operates Realtor.com under license from NAR.

Appeared in the January 23, 2021, print edition as 'Pandemic Fueled a Rush to Buy Homes In 2020.' | Updated Jan. 22, 2021 4:13 pm ET

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With their Multi-Cultural Background, over 35 years of combined experience selling Real Estate and because they are Licensed in New Jersey, New York and California, Rahul, Smitha and their team can offer global reach. They have lots of experience representing a diverse group of clients, from Local New Jersey Buyers & Sellers to Relocation and International/Foreign Buyers, Sellers and Investors. 

Rahul and Smitha are exceptionally well-respected Realtors in the industry with high ethical standards and GLOWING REVIEWS. Their team offers a high level of expertise, innovative technology and cutting-edge real estate marketing and sales solutions.  They specialize in Morris, Somerset, Essex and Union counties. 

www.SRRealEstateGroup.com | www.Morris-Homes.com | www.TheTownhouseExpert.com

Morris Essex Women to Watch: Smitha Ramchandani

 

  

Smitha was recently featured in Morris Essex Magazine as one of their Women to Watch! It is such a thrill and honor, and we're happy to share the article with our friends, family, and supporters.

 

Women to Watch: Smitha Ramchandani

Morris Essex Magazine

Original article here.

Fearless from the start and driven by passion, Smitha Ramchandani is the embodiment of the American dream. Her entrepreneurial journey across cultures and continents has provided Smitha with an education that no Ivy-league MBA program can teach. 

 Helming jointly one of the area’s consistently top selling teams in the Northern NJ area with her husband Rahul, Smitha offers a high-touch approach that delivers seamless real estate transactions for all her clientele. Licensed in NJ, NY and CA, their team offers unparalleled global reach, local market expertise, and most importantly a work ethic and mission that have made her a trusted specialist. Real Trends ranked her team as one of the Best Real Estate Teams in NJ. 

 Regularly spotlighted in the media, and in-demand as an international speaker, she has been featured in Forbes, Wall Street Journal, Daily Record, Business Insider, NJ.com, Real Estate Business Magazine, and more. She is on the Board of Directors of the Asian RE Association and FIABCI. She also believes in making a difference and fundraises to fight breast cancer. Smitha is so excited to be squarely centered in one of the most exciting Real Estate markets New Jersey has ever seen. Smitha is truly a woman to watch.  

   

 

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With their Multi-Cultural Background, over 35 years of combined experience selling Real Estate and because they are Licensed in New Jersey, New York and California, Rahul, Smitha and their team can offer global reach. They have lots of experience representing a diverse group of clients, from Local New Jersey Buyers & Sellers to Relocation and International/Foreign Buyers, Sellers and Investors. Rahul and Smitha are exceptionally well-respected Realtors in the industry with high ethical standards and GLOWING REVIEWS. Their team offers a high level of expertise, innovative technology and cutting-edge real estate marketing and sales solutions.  They specialize in Morris, Somerset, Essex and Union counties. 

www.SRRealEstateGroup.com | www.Morris-Homes.com | www.TheTownhouseExpert.com

Exclusive Listing: 114 Arrowgate Drive, Randolph

 

3 BD, 2.1 BA, 2-Car Garage | Offered at $400,000

Not in the MLS! Call Smitha 973-953-7777 for additional info & to schedule a private showing.

This bright spacious townhome is a standalone unit - great privacy with no shared walls with neighbors! Located in a beautiful community with pool, tennis courts, and playground, just 10 mins to the train station with quick access to Rts. 10 and 46. Ideal for commuters plus tons of shopping, dining, and recreation nearby. Inside the 1st floor features generous spaces for entertaining and everyday living. Big living, dining, and family rooms with wood floors, a marble-surround fireplace, an upgraded eat-in kitchen, and a deck for enjoying the outdoors. Upstairs are three comfortable bedrooms with a master suite boasting a jetted tub and walk-in closet. Meanwhile, the finished walkout basement offers even more space to work, study, or play.

Scroll the photos below and contact us for a private tour! Smitha 973-953-7777

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With their Multi-Cultural Background, over 35 years of combined experience selling Real Estate and because they are Licensed in New Jersey, New York and California, Rahul, Smitha and their team can offer global reach. They have lots of experience representing a diverse group of clients, from Local New Jersey Buyers & Sellers to Relocation and International/Foreign Buyers, Sellers and Investors. 

Rahul and Smitha are exceptionally well-respected Realtors in the industry with high ethical standards and GLOWING REVIEWS. Their team offers a high level of expertise, innovative technology and cutting-edge real estate marketing and sales solutions.  They specialize in Morris, Somerset, Essex and Union counties.

www.SRRealEstateGroup.com | www.Morris-Homes.com | www.TheTownhouseExpert.com