Archive for the ‘Real Estate News’ Category

The signs have been there: record-low interest rates and reasonably priced homes in Basking Ridge. This week, the Wall Street Journal presents two factors that make now “an excellent time to buy a house.” First, the ratio of home prices to yearly rents is close to its pre-bubble average. Second, when mortgage rates are considered, houses are the most affordable they have been in decades.
The article goes on to explain that whether or not buying is a better deal than renting depends on the relationship between prices and rents, the cost of financing and other factors. The good news is that the numbers all seem to be heading in the right direction.
According to Moody’s Analytics, the nationwide ratio of home prices to yearly rents is 11.3, down from 18.5 at the peak of the bubble. With all things being equal, a lower ratio means buying is preferable to renting. Even though the price/rent ratio is not as low as it has been, house payments are more affordable than they have been in decades because mortgage interest rates are so low.
And, despite public opinions otherwise, mortgage money is available according to information in the article attributed to Stan Humphries, chief economist at Zillow, a home and real estate consumer website.
The article closes with this advice: “When prices are low, loans are cheap and plump investment yields are scarce, buyers should jump.”

It was a busy week in real estate news with several reports being issued, and actions by the Federal Reserve to help stabilize the economy. With affordability at all-time highs due to record-low mortgage rates and attractive home prices, this is encouraging news for Basking Ridge homebuyers and sellers.
First, the Commerce Department reported that permits for new construction increased 3.2 percent in August, offering a glimmer of light for the new-home market. A rising number of permits can be a forward-looking indicator of housing starts in coming months, and later in sales of new homes.
In addition, the National Association of Realtors said that existing-home sales increased in all regions in August, even despite regional disruptions created by Hurricane Irene. Overall, sales of existing homes increased 7.7 percent from July and were 18.6 percent higher than in August 2010.
This week, the Federal Reserve also announced Operation Twist, a program intended to spur lending, induce businesses to expand and tempt consumers into spending more. According to the Fed, the intended result is downward pressure on longer-term interest rates and broader financial conditions that are more accommodative. Economics are unpredictable, and while mortgage rates reacted to this news by moving lower, things can – and have – changed quickly.
For consumers looking to make a purchase or refinance, the opportunity to capitalize on historically low interest rates is right now.
Click here for more information about buying a home in Basking Ridge and surrounding area.

I have been busy and just listed a townhome at 89 Saxonney Circle in Raritan Twp. This home offers 2 spacious bedrooms, 2 1/2 baths, attached garage and basement, over 1,400 sq ft for $198,000. It does need some TLC, but is a great buy! Enjoy pool, tennis courts and play ground. Contact Alma Aguyao, Basking Ridge Weichert Realtors Office

Spring fever has hit, and there is no better time than now to prepare for a season full of outdoor entertaining. An outdoor kitchen is one of the hottest trends in backyard living in town. Ranging from a simple barbecue island to a full kitchen with specialty appliances that allow homeowners to do all the food preparation outside, there are a variety of ways to create your own outdoor gathering spot.

Here are some things to consider when planning an outdoor kitchen:

• It is very important to choose appliances that are designed for outdoor use. For example, outdoor refrigerators need to maintain consistent temperatures in an unstable environment, and also need to be weatherproof so they hold up to the elements.
• It is equally important to ensure that there is adequate ventilation for appliances. For example, built-in refrigerators are front-vented so they require little to no clearance on the top, sides, and rear of the unit, but freestanding models require at least one inch of ventilation on all sides.
• Don’t forget to factor in additional costs for adding electrical outlets, and running a water supply line or a drain system.

The safest bet is to select a licensed and insured installer. Not only will they be aware of any do’s and don’ts, you will also have peace of mind knowing that you are working with professionals who will stand behind their work if something goes wrong.

There is still another month of winter ahead, and the possibility of wintry weather for even longer. While it is not quite yet the traditional “spring market,” it is still a good time to sell a home as buyers look to take advantage of historically low mortgage rates. 

Sellers who have their homes on the market now, can benefit from the following tips that will help make their home shine even when the sun isn’t: 

• Prove energy efficiency: Prepare a list of all the things you have done to make your home more energy efficient, such as adding insulation in attics and around pipes, or replacing windows. Homebuyers are particularly interested in energy efficiency this time of year.
• Shed some light: The winter months can be dreary. Turn on the lights, open the curtains, clean your windows, and even consider temporarily removing window screens to make your home as bright as possible.
• Minimize the effects of winter: Outside, you should keep your driveway, walks and steps free of ice and snow, and your gutters clear so icicles do not form. Inside, be sure the floors are clear of any water spots or salt that may have been tracked in.
• Show the landscaping: Buyers might not be able to see your landscaping or other outdoor amenities, but you can help them by preparing a diagram of your outdoor spaces. Use photos or landscape design software to show the outdoor features your home offers.

Generally, most real estate professionals would advise you to list your present home and shop for a new one simultaneously. However, depending on the market and/or your individual needs, you may want to consider and alternative.

In a very robust real estate market, your home could sell within a few days of listing. Yet you may have very specific criteria for your new home’s location, size, views, age, etc. which could lead to a time consuming search. In that case, you should consider finding and buying a home first before you sell you existing home.

Seasonality, too, has traditionally played big role in deciding when to sell, with spring and fall the most popular seasons to put a home on the market. More recently however, interest rates and the state of the economy have been affecting buying habits more than the seasons. Low interest rates send buyers out hunting for homes year round. And while some can be deterred by unpleasant weather conditions, it’s been our experience that potential buyers who brave the inclement weather tend to be very motivated.

If you have visions of long summer weekends at a country or beach house, now is the ideal time to purchase your second home. Not only do low mortgage rates and affordable prices provide amazing opportunities for vacation-home buyers, but those who buy now can close on their home in enough time to enjoy it this summer.

Here are some reasons why the time is right to invest in a second home:

• Prices and mortgage rates are about as low as they go. Today’s buyers can get a lot more for their money than they could in the past — and will in the very near future. This might be the best chance for you to make a vacation home a reality.
• There are a lot of great homes to choose from. In a buyer’s market, you have a greater selection of homes to consider, and it is more likely that you will find a home that has most of the features you want.

A vacation home tends to be a good long-term investment, and has the ability to pay for itself if you choose to rent it out. By purchasing your second home now, you will have time to prepare your home for this summer’s rental season.

Spring is on its way, and homebuyers are out in full force to take advantage of record affordability conditions. Attendance at Weichert Open Houses during the Feb. 12-13 weekend was up 24 percent compared to the same weekend last year.

In addition, the average number of attendees at each Weichert Open House was 44 percent greater than during the same weekend in 2010.

Buyers are out there!

Please join me this Sunday, February 20th, 2011, from 1pm to 3pm, at an Open House at 85 Potomac Dr. in Basking Ridge. It’s a beautiful 2 bedroom condo on second floor in Spring Ridge. See you then!

Home sales rebounded in 49 states during the fourth quarter with 78 markets — just over half of the available metropolitan areas — experiencing price gains from a year ago, according to the latest survey by the National Association of Realtors (NAR).

Total state existing-home sales, including single-family and condo, jumped 15.4 percent from the previous quarter. In addition, the national median existing single-family price was up 0.2 percent from the fourth quarter of 2009.

Lawrence Yun, NAR chief economist, is encouraged by the trend. “Home sales clearly recovered in the latter part of 2010 and are helping to absorb the inventory, including many distressed properties. Even with foreclosures continuing to enter the inventory pipeline, they’ve been selling well and housing supplies have turned down,” he said. “A recovery to normalcy requires steady trimming of the inventories.”

Regionally, the median existing single-family home price in the Northeast increased 2.3 percent in the fourth quarter from a year earlier. Existing-home sales in the Northeast rose 15 percent in the fourth quarter.

According to a 2010 National Association of Realtors survey, 89 percent of homebuyers used the Internet during their home search. As consumers continue to rely on the web as an important source of information, it is critical for home sellers to ensure their property receives significant exposure online.

Here are some important points about marketing your home online that you should keep in mind:

• Be sure your real estate sales professional strategically places your home on the Internet to gain maximum exposure. Real estate websites get a lot of traffic. For example, Weichert.com had more than 3.5 million visits in January alone. The site also syndicates its listings to other high-traffic sites like Yahoo! Real Estate, Realtor.com and Zillow. com.
• Listings with lots of photos appeal to buyers and get them excited about the home and all the possibilities that await once they live in it. Make your home available for photos, and make sure you do a thorough cleaning and remove any clutter to maximize your home’s appeal.
• What happens after a prospective buyer views your home online? You want to be sure that a mechanism is in place to get that buyer in for a showing as soon as possible. Look for websites that include an e-mail service that alerts house hunters of new listings, as well as a feature like Weichert’s Quick Connect service that links consumers directly with a sales professional who can provide more information.