The most recent reevaluation came in 2006 just before the market tanked when prices in Montclair dropped significantly. Some Montclair residents have already filed tax appeals, so their tax assessment may have a smaller change than those that did not file…obviously. Steven Rubenstein of Realty Appraisal Co. who achieved this feat after a presentation to town council said, “All assessments will change. Every single assessment will change. Some will change a lot more than others.”

The assessment will adjust property values to current values throughout Montclair. Here is the Catch 22 of this. Property owners who have won tax appeals in the recent past have created a $2.1 million problem to the town due to required refunds. This year, the refunds are projected to exceed $4 million. Property owners win, Montclair budget loses. What does this mean? Less infrastructure repair? We’ll see.

On a positive note, this ought to push fence sitting buyers over to the buy side easily. Those that have targeted Maplewood or other areas as opposed to Montclair due to the taxes will probably re-select Montclair. How can you not with two happening downtown districts and quick access anywhere via NJ Transit?

For every 10% drop in property taxes, we expect a 2.5% gain in property values over the next year for Montclair.

Spring buying season is in effect though and that is indicative of the number of homes that went “Pending” or beyond the attorney review period.  In March, 20 homes in Montclair were updated to a “pending” status.  Today is April 11, and so far in April 12 homes have went pending in Montclair, a good sign that the activity is continuing.

In 2010, the median sales price of homes in Montclair was $634,000.  YTD in 2011, the median is $555,000.  The average price per square foot is running about $265, with lower end homes that are not updated selling for about $200 / SF and higher end updated homes selling for about $370 / SF.  Keep thie price per square foot in mind when shopping for a home.  It is the biggest indicator as to what is going on in the market.  The overall average of $265 is down from $324 at the peak in November 2007.

• In March 2011, there were 7 home sales in Montclair.  There were 22 sales in March 2010.
• The average sales price was $1,212,977.
• The median sales price was $849,000
• The average number of days on the market was 116 days
• There are currently 152 Active Listings on the Garden State MLS.

We have fielded numerous calls for homes in Montclair under $600,000 so it appears that the sub $600k market is picking up nicely.  The average sales price in March was a little skewed as the McMansion at 126 Lloyd Rd finally sold after sitting on the market for 267 days.  It sold for $3,100,000.  The original listing price last summer was $3,875,000 and recently lowered to $3,399,000 before settling at $3,100,000.  It is an amazing house though so kudos to the new owners!   We made our thumbnail picture in this post the monster house.

If you are interested in buying or selling a home in Montclair, you have come to the right place.  We are some of Montclair’s top agents and will be happy to offer a free consultation on what our advanced marketing and sales strategies are.  Feel free to contact us by e-mail or call Scott at 877-688-7582

We have several clients looking at homes under $400,000 that include convenient access to public transportation.  In areas such as Lyndhurst where First Time Homebuyers are targeting an area with lower real estate taxes, updated homes between $300,000 and $350,000 are selling within days.  Homes requiring some light TLC are going for about $300,000 and rehab homes are selling for $250,000 to $285,000.  These prices are sure-sellers.  We are having a tough time getting half-motivated buyers into some good homes.  If you really like something in that pricepoint, you have to move on it quickly.

Areas around Brookdale Park in Bloomfield are selling quickly also.  The 2 mile radius of Watchung Ave and Broad St, homes are selling very quickly at under $350,000.  Rehab homes a bit cheaper, but updated homes are almost untouchable these days for under $315,000. 

As Spring buying season heats up, we expect competition to increase.  If you are shopping for a new home, give us a call.  We will quickly give you price parameters in your area including your preferred criteria.  We do this so you don’t waste your time.  Thanks for reading.  Please comment below and share your story about homes in your area and competition that is coming along with it.

Ridgewood NJ real estate has maintained its fight through the recession.  The housing market has been anything but disappointing.  Just some quick facts:

• Ridgewood NJ median home values are about 13.6% higher in 2010 as they were in 2009.
• Ridgewood NJ average sales price is up 5.2% in 2010 versus 2009.
  
• Total Sales Volume in 2009 was 194.  Currently with 2 full months left, 215 homes have sold in Ridgewood this year.

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The most glaring positive that we see is the Rate of Absorption.  A healthy market is characterized as having 6 months or less of inventory.  We calculate the rate of absorption by taking the number of available homes for sale and dividing by homes placed under contract the previous month.  This indicates the amount of time it would take for a local market to sell out of homes at the current rate of accepted contracts if no other homes came on the market.

To see a full report of MoM and YoY statistics and charts, CLICK HERE

If you are interested in buying or selling a home in Ridgewood, make sure to use New Jersey Real Estate Guys who provide expertise in macro analysis and real time market trends that will help you decide your most favorable decision going forward.  Give us a call for a free consultation and stay one step ahead of the market with us.  Call Scott Allan at 877-688-7582 or e-mail here.

November 4, 2010 Multi-Family Income Investment Opportunity of the Week:

Our deal of the week lands in Morristown, NJ.  This is a 5-Family home with a walking distance location to “The Green” and the downtown sector.  The rent roll is solid and income is very good for investor oriented buyers.  Here are some numbers on the building.  If you are interested in all of the information, please contact us.

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Typically, I like to look at deals that get around an 8% Capitalization Rate.  The Capitalization Rate or Cap Rate is a ratio used to estimate the value of income producing properties.  Put simply, the cap rate is the net operating income divided by the sales price or value of a property expressed as a percentage.  Investors, lenders and appraisers use the cap rate to estimate the purchase price for different types of  income producing properties.

Investors like myself, also look at “upside potential”.  While this home has a Cap Rate of 7.23%, it is enough for me to consider this deal WITHOUT upside potential.  However due to its location, rent roll, rent escalations, etc. I believe that this deal has both factors of Cap Rate and Upside working in our favor. 

If you would like any additional information on this property, please call Scott @ 877.688.7582. 

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Three (3) Family Home priced at $280,000  (SOLD)

Welcome back to our Multi-Family Home of the Week Post.  As most of you know, I am an advocate of multi-family home investing.  I think in New Jersey, it is easily the quickest way to make a solid return on your invested dollars.  Today’s Multi-Family home of the week is in East Orange.  Here are the details:

Located off of Central Ave in East Orange.  Built in 1940 and completely gut-renovated in 2008.  All Units have a washer/dryer, Central A/C, Vinyl Siding, Privacy fence in back, and security system.  Owner pays water.  Tenants pay Electric, Gas, Heat.  Building has a total of 16 rooms, 10 bedrooms, and 3 Full Bathrooms.  Underground utilities.

1. First Floor unit has a total of 5 rooms which includes 3 bedrooms and 1 bathroom.  This unit is rented for $1,300 per month.
2. Second Floor unit has a total of 6 rooms which includes 4 bedrooms and 1 bathroom.  This unit is rented for $1,550 per month.
3. Third floor unit has a total of 5 rooms which includes 3 bedrooms and 1 bathroom.  This unit is rented for $1,300 per month. 

 Let’s now look at how the numbers work as an investment property.  The pro forma will be based off of today’s (1/8/10) investment mortgage program using a 75% Loan To Value and 5.75% rate

Purchase                              $280,000

Down Payment:                     $70,000

Mortgage Principal:               $210,000

Monthly Gross Rent:            $4,150

Monthly Expenses

• Debt Service:                              $1,247
• Taxes                                         $626
• Insurance                                   $150
• Property Mgmt (if applicable)        $332 @ 8%

Total Expenses:           $2,355

Surplus Cash:               $1,795 or $2,127 if managed by owner

Net Operating Income :  $21,540

*Mortgage could be paid off in 12 years on a 30 year term.

If you are interested in setting up a showing appointment, request additional details, or would like more information on how to purchase this home, please contact us and we will assist you in the entire transaction. 

As the working week comes to an end, and while you are pondering your thoughts on how much rum and egg nog you could possibly drink this weekend, I want to leave you with some real estate thoughts that stuck out to us during one of our visits.  If you are looking for your primary home or an investment, this Kearny Two Family Home for sale should be right up your alley..

It is a 2 family home located in the Arlington section of  Kearny, NJ.  For the price and current market inventory it is one of the largest in its group and also one of the nicest in terms of the overall condition. (The thumbnail picture is the actual home). 

The home is located within walking distance to bus stops and is less than 100 meters from Roosevelt School.  There are wood floors, gas forced heat, and Central A/C.  There are 2 separate gas and electric meters and as a bonus, the roof was replaced in the last 2 years. 

The building has a total of 12 rooms, 5 Bedrooms, and 2 Full Bathrooms.  The basement is partially finished and is HUGE, which can be used for storage, however is finished enough to use as a recreational room.  Taxes on this home are approximately $9,500.

Currenly, the first floor is occupied by a physician as a Medical Office.  It is not known at this moment if the tenant plans on staying put, but if not, no worries.  Our property managers can assist in finding a new tenant, which we would recommend as medical, law, office, or retail.  You also have the choice of simply renting it to a normal tenant who plans to live there.  Either way, you have excellent options since that first floor is zoned Commercial (C-3).  The first floor commands a rental of $1,200 to $1,400 per month minimum.  The second floor commands nearly the same, closer to $1,200. 

The price of this home is just under $340,000.  For the location, it speaks for itself.  It is only 4 miles to the Meadowlands where the world famous XANADU is opening its doors in mid 2010, and you are also less than 7 miles from the Lincoln Tunnel!  Inside of 10 miles, you have anything else you could ever imagine…Entertainment, fine dining, nightlife, etc…

Here is how the numbers would work if you purchased on a 30 Year Fixed Mortgage at 5.5% rate.  Rates are significantly lower for owner occupied home loans.

$1,500     Monthly Debt Service (Mortgage)

$791         Taxes Escrowed Monthly

$2,291     Total Debt / Escrows

Taking into considerating that you rent out the first floor at $1,300, your leftover monthly payment would be $991 per month if you are an owner occupant (This is actually cheaper than renting).  An investor would get a positive cash flow of about $300 per month.  Although the capitalization rate is slightly low for an investor (to some), this home has the perfect location and condition to nearly assure you a much higher future value and be in a league of its own in regards to available inventory for sale now or in the future. 

If you are interested in viewing additional pictures or would like any other information on this home or other Kearny NJ homes for sale, please do not hesitate to contact us.  We are your real estate experts for all of Hudson County multi family homes, single family homes, and condos for sale.  CONTACT US NOW

Ridgewood NJ real estate

The 2009 average trading price in Ridgewood was $741,854.  So far this year in 2010, the average home is trading at $794,559, an increase of nearly 6.7%.  In our analysis, there are more homes priced aggressively in Ridgewood than any other town surrounding it, resulting in July sales having an average “Days on Market” 39 days and August which had 49 days average time on the market.  We calculate our “aggressive asking price” by charting the amount of homes priced within 15% of current trading averages.  We only recognize homes under $1 million for “aggressive prices” as numbers are too skewed with anything higher.

Check out the charts and graphs that we provide below and let us know your thoughts on Ridgewood’s housing market.  Although September sales volume dipped from August, we expect October’s sales to be higher, balancing out the average.  Also, 2010 is going to shatter the 2009 Total Home sales.  In 2009, there were 194 home sales in Ridgewood.  Year to date in 2010, there have been 185 sales.  This is all positive news for Ridgewood.

To preview a full analysis of year over year and month over month figures for Ridgewood, CLICK HERE

To view charts in larger form, click on them to enlarge.

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FYI, when discussing Absorption Rate, a healthy market typically has 6 months or less of available inventory.  It is essentially the amount of times the market would take to sell out of homes at the pace of the previous months’ activity.  The Rate of Absorption is calculated by taking the number of available homes on the market and divide that by homes placed under contract the previous month.  So for explanation purposes, 136 / 26 = 5.23 Months

The charts above clearly show a significant increase in the average sales prices of homes.  Ridgewood is a popular town for finance professionals, among other upper income demographic.  With Wall Street bonuses expected to be strong this year, we expect Ridgewood to show consistent numbers until Spring 2011.  Sales volume will likely start spiking again by April and May where we may see an increase in medians and averages.

Based on our analysis, we feel that it is a great time to begin your search for homes while taking advantage of historical low price per square foot figures as well as low mortgage rates.  Sellers can take advantage of the numerous buyers looking to buy their home.  We are getting a lot of calls for Ridgewood indicating that there are certainly a lot of buyers out there looking.  The charts and graphs speak volumes for the attention.

If you are interested in buying or selling a home in Ridgewood, rely on the experts at New Jersey Real Estate Guys.  We would value an opportunity to showcase our top notch marketing approach and knowledge of the market which plays a very important part in negotiating the best deal for you buyers.  You can call us at 877.688.7582 or e-mail us by using the Contact button in the upper part of our web page.

• 75 Daniel Ave:  Colonial home.  Last list price $335,000.  Sold for $285,000.
• 14 Monona Ave:  Colonial Home.  Last list price $350,000.  Sold for $316,000
• 207 E. Pierrepont Ave:  Colonial Home.  Last list price $335,000.  Sold for $326,000
• 38 Donaldson Ave:  Colonial Home.  Last list price $399,000.  Sold for $370,000
• 46 Sylvan St:  Colonial Home.  Last list price $519,000.  Sold for $500,000
• 233 Ridge Rd:  Colonial Home.  Last list price $700,000.  Sold for $662,500.

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A healthy market is typically characterized as one with around 6 months of inventory.  Rutherford is at 10 months.  Indicative above in the home sales in August, there is clearly some bargaining power in homes in Rutherford.  If sellers are looking to sell their homes, an aggressive price will get it done.  As in any market, right now is a favorable time to “trade up”.  Even if you take a loss on your current home, that is tax deductable.  Additionally, your new home will bring you longer term benefits, in addition to the lowest mortgage rates we will likely ever see.

For a full month over month and year over year spreadsheet on Rutherford sales volume, absorption, and inventory, Click Here

If you are looking to buy or sell a home in Rutherford, you can count on the New Jersey Real Estate Guys to provide you with up to date suggestions for marketing and strategizing appropriately.  You can call us at 877.688.7582 or e-mail us using the CONTACT button at the top of the website page.  We would value an opportunity to interview for the job of representing you in this challenging housing market.

If you are looking to buy or sell a home in Franklin Lakes, NJ, we would value an opportunity to discuss the local market and evaluate your position to assure that we get you the right deal.  Let’s look at some Franklin Lakes numbers.  Before we do so, if you are interested in browsing some homes for sale in Franklin Lakes, NJ, see below:

Franklin Lakes Homes for sale Under $750,000

All Homes for sale in Franklin Lakes NJ

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Indicative of this chart, the rate of absorption at 17 months is a considerable amount of inventory.  Sellers will have to price aggressively to sell, but as in most areas we cover, if the seller is willing to do so, homes are selling within 60-90 days.  If you would like a Comparative Market Analysis where we can give you a ballpark valuation of your home, let us know.  At the very least, you can see if it is even an option to sell your home.

To preview a full month over month and year over year analysis dating back to 2008, CLICK HERE

If you are looking to buy or sell a home in Franklin Lakes, we would value an opportunity to sit down with you and discuss some options and offer our suggestions.  Feel free to call us at 877.688.7582 or e-mail us.

For all of our past reports and Franklin Lakes archives, CLICK HERE

If you would like any information on trading up or down please contact us.  Let’s look at some August 2010 statistics to see how Nutley faired.

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To preview a 2009 versus 2010 analysis, which also provides month over month and year over year statistics, CLICK HERE

Indicative of the chart above, the Nutley NJ real estate market has some flexibilty.  Sellers are getting approximately 93.3% of their asking price on average and the absorption rate of 13.8 months is not in favor of sellers holding onto unrealistic asking prices.  An analysis on the inventory can identify if a home is priced according to the market or where we can go to get it there.

If you are looking for Nutley NJ homes for sale or are looking to sell, we would value an opportunity to interview for the job of representing you.  We can provide some suggestions that can hopefully give you a full insight of the local Nutley housing market.  Call us today at 877-688-7582 or simply e-mail us by using the CONTACT button above.

If you would like to browse all Nutley homes for sale, please use our tool on the homepage which gives you access to our MLS IDX searching tool.

Glen Ridge

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Below are some statistics for August in Glen Ridge real estate market.

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To review the full data of sales absorption and activity for 2009 vs. 2010, CLICK HERE.

FYI, a healthy market is typically considered one with 6 months of inventory.  Glen Ridge has only 3.3 months.  The thought of further price declines seems old as demand will likely keep up with the current pace.  Although we do not see huge value appreciation, we do think that whether you are looking to buy or sell, either way is favorable today.

If you are in the market to buy or sell a home in Glen Ridge, NJ, we would value an opportunity to share our thoughts and suggestions with you regarding the area.  If you would like to meet or consult over the phone to see if we would be the best agent for the job, please feel free to call us at 877-688-7582 or use the contact button above to e-mail us.  To browse all Glen Ridge NJ homes for sale, please use the MLS IDX searching tool to the right on our homepage and narrow down your choices to your preferences.  It’s a wonderful tool!