Friday, April 25, 2008

Housing Information from OTTEAU

ECONOMY & CREDIT CRISIS SPOILING SPRING HOUSING MARKET

New Jersey home sales in March ran well below last year’s pace despite an increase above the February level. In March, contract-sales activity ran 27% below one year ago despite a 9% increase from February. The clear signal is that the housing market has further to fall.
While housing affordability in New Jersey has improved over the last year, home sales remain weak due to a variety of factors including tighter lending standards and low confidence in home prices. Adding to these housing troubles is growing concern about job security as the economy shows increasing signs of weakness. Particularly worrisome for the northern New Jersey submarket is a new Department of Labor estimate which projects as many as 36,000 job cuts on Wall Street, nearly double the previous estimates. Should this play out, housing demand in Manhattan and its surrounding suburbs will be further reduced.


As a result, expect the Spring selling season to be ‘late & brief’ with only a modest increase in sales activity. Given that contract-sales activity this year is the weakest in recent history (see chart at right), the 2nd half of the year will pose significant challenges for home sellers as prices continue to drift downward.


The one positive note for the housing market is that the growth in Unsold Inventory has slowed significantly and is actually declining in some markets. As a result, the New Jersey housing market has 10.5 months of for-sale inventory, down from 11 months in February. Expect a slower pace of home price declines in 2008 as the market gets closer to reaching a bottom point.

Thursday, April 24, 2008

11% Say Economy is GOOD

Pew Research = 11% Think the Economy is GOOD, What do you think?

The Real Estate Market has slowed up some from where it was in previous markets. In my 16 year experience, I've seen HIGHS AND LOWS. It's a cycle for sure. The Spring Market is certainly starting to show some activity. It's not BOOMING but here at the JERSEY SHORE, there is a reason to be POSITIVE. What do you think?

http://pewresearch.org/databank/dailynumber/?NumberID=502

Friday, April 4, 2008

Short Sales and Becoming ProActive

It's been a tough week in Real Estate. It's big concern as selling prices continue to drop and houses not selling as fast as they should in the beginnings of this Spring Market. When I look at is the activity in the MLS becoming more price reductions than UNDER CONTRACT AND CLOSED SALES makes me wonder how soon will this Real Estate Market adjust itself. Even though when we look at the nation as a whole, NJ is not in that bad a shape.

However, here in our lovely Garden State there are other things to consider, the fact the many people are hurting because the weak economy has put many in a position on not being able to make ends meet. We are losing jobs to New York and Pennsylvania then, waiting and waiting for the government to take steps in helping our citizens is a lesson in patience and doing the best we can.

Our homes are our biggest investment and what can we do if we fall to far behind in our mortgages. Something to consider if there are no other alternatives is a short sale on your home before you get too deep in debt and can't get out. Lenders would prefer to try and work a short sale out before go through the process of foreclosure with anyone if there is still time. Banks and Mortgages companies are being bombarded lately with calls. To speak to one individual who is knowledgeable about your situation is tough. If I can help in anyway let me know. I have forms and tips to share with you. I will give you the best advice I can to get you though these hard times.

Call the Bank and let them know you wish to sell your home through a short sale and let a real estate professional help guide you through the process. Hang in there.