For those of you that are aware, the ARC Program is underway deep under the Hudson River.  The ARC Program is a project set for completion in about 8 years that will include construction of an additional rail tunnel to Midtown Manhattan where residents in suburban NJ will be able to take the rail DIRECT into the city.  No more connections.  Historically, when a direct rail line is constructed in an area, it increases home prices by as much as 10%.  CLICK HERE to read all about the ARC Program and the effect on real estate.

In regards to the housing sector, Lyndhurst has always been a small market.  There are only 40-50 homes for sale at a time typically and home sales have not even reached double digits per month dating all the way back to January 2009.  That said, the rate of absorption is good and is below the national average, a good thing.  So let’s look at some figures for the month of July.  In July homes that sold averaged 86 Days on the Market.

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Click Charts to Enlarge

As indicated in these charts, monthly absorption remains pretty consistent with the norm, but prices have progressively increased since January of this year.  Although the increase isn’t anything to brag about, the average price of a home sold in Lyndhurst has increased by about $30,000.

The Rate of Absorption indicates how long it would take to sell the entire inventory of homes for sale based on the previous month of home sales.  So being that there are 40 homes for sale, and in July 2010, there were a total of 8 sales, you take inventory divided by sales, and you come up with 5 Months.  This is considered healthy and is below the national average, a good thing.

If you are in the market looking to buy or sell in Lyndhurst, we welcome you to give us a call so we can help assist in your real estate needs.  We know all about all Lyndhurst NJ homes for sale.  We know the market very well and can give you good insight on the specific local market and those surrounding it.  You can call us at 877-688-7582 or e-mail us here.  We look forward to hearing from you.

“ARC is New Jersey and New York’s biggest investment in transit, ever.  It involves the construction of a second commuter rail tunnel that will connect NJ Transit’s existing rail network and Metro-North Port Jervis and Pascack Valley service with a new terminal station at 34th Street in the city.  ARC will double the number of trains that can travel every morning into the economic engine of the region from west of the Hudson River.  For several train linesthat currently terminate in Hoboken, Newark, and Secaucus, ARC will provide new, direct service to Midtown.  For those lines that already terminate at Penn Station-NY, ARC will significantly increase the frequency and reliability of service.”  (ARC Report)

It is expected that residents with commutes of under 50 minutes into the city with the new tunnel, the number of commuters will DOUBLE after ARC.  This will effectively cut down on pollution as well, a great benefit to the planet and Northern NJ.  For homeowners looking currently to buy, perhaps it would be a good idea to look closer to rail stations if you are looking for added benefits in the near future.  The ARC is expected to take up to 10 years to complete, but many in the industry are expecting closer to 7-8 years.  It is currently underway though and drilling through the Hudson River is taking place as we speak.

Here are some interesting stats to keep in mind regarding real estate:

• Homes near train stations significantly gained in value after Midtown Direct, Montclair Connection and Secaucus Junction.  The average home gained $23,000, with the highest gains coming within walking distance to the stations.
• Houses immediately adjacent to San Francisco’s BART sold for nearly 38% more than identical homes in areas not served by BART (Landis and Cervero, 1995).
• Homes within walking distance of stations on the Morris & Essex line increased in value by $90,000 more than homes farther away after direct service to Midtown was inaugurated in 1996 (Michaelson, 2004).
• In Chicago, the prices of single family homes located within 1,000 feet of stations were worth 6.7% more than similar homes in other communities (Armstrong 1995)

To read the entire ARC Report and to reference the writers of the report, quoted in this post, CLICK HERE.

Just to the right of the screen, you will notice our customized MLS / IDX tool.  This custom design allows you as the user to search all homes for sale using your specific criterias.  This system will allow you to narrow down your homes so you won’t get overwhelmed by thousands of homes.

As stated to the right, the MLS’s are area specific.  Be sure to use the MLS / IDX that is appropriate for your area.

Here is a useful pointer on MLS Options:

New Jersey MLS: This MLS is the most popular for real estate listings in Bergen County.  Also has most of Essex and Passaic County listings

Garden State MLS: This MLS is most popular for Essex, Passaic, Morris, and suburban counties south of Bergen County.  You can also use this MLS for a good alternative for Bergen County real estate listings.

Hudson County MLS: This MLS is self explanatory!  Gives you all real estate listings in Hudson County.

Once you find a home or homes that you like, be sure to give us a call for a tour of the home and information regarding the area.

New Jersey Real Estate Guys prides ourselves on providing you simple unintrusive ways to search for homes.

At least in the state of Florida, buying a distressed condo building that is FRACTURED has huge potential for a Value Add investment.  In short, a Fractured Condo Building for example is a 50 unit building where currently 10 are owned by individual owners that may or may not be current on their mortgage and condo association dues.

I LOVE THESE DEALS.  When you have an opportunity to purchase a Fractured Condo Building, put some wheels in motion with an experienced person in the niche and look to purchase the note or the asset.  You won’t believe how clueless lenders are on Condo Laws.  This is your leverage to get a building at pennies on the dollar.  First off, banks normally won’t do a condition update.  They also don’t know the condo statutes regarding delinquent Condo Association dues.  Here’s a secret.  If you purchase a fractured building, there is a way where you can get the bank to pay you for all the back log of delinquent Assocation dues, your first part in stabilizing the asset.

Second, know everything about Developer Successor Liability.  Typically, we can get the bank to release all pertinent information on the property that they know of so we can perform some due diligence, including walking the property.  Walking the property is essential to do with a professional inspector.  It’s worth the $350 to have them handy.  This isn’t a FULL inspection, but certified inspectors can typically locate a BIG problem.  The little problems can wait until our due diligence starts in the contract for purchase.  Something to look for that could be BIG problems:  Sinkholes (just had a deal fall through because of it), Dry-Rot on wood frame construction, such as hardy board siding.  Look for roof issues, most noticeably any “waviness” in the shingles and structure.  Look at parking.  Are there enough spaces without making it look very crammed?

Fractured Condo Buildings are a HUGE headached with HUGE potential.  Knowing Condo Statutes is a MUST and being direct with banks is also very important.  We can help in both categories.  Price ranges for our projects typically run from $3 million to $20 million, depending on size and location.  But the long term benefits of taking a fractured building and stabilizing it is worth the headaches.  Value Add opportunities are my favorite and something I would recommend looking into.

Lastly, there is no financing available for fractured condo buildings UNTIL they are stabilized.  New legislation is likely being put in place to allow favorable financing for fractured buildings, however they aren’t available as of this minute.  Cash buyers are best for purchasing this type of asset or note, however once you stabilize the asset with occupancy, condo association stability, etc..  Once you have a stable asset, lenders will allow you to refinance and during the time of stabilization, you added a lot of value to the real estate, thus a 70% Loan to Value could conceivably get you all of your invested cash back out of the deal.  Playing with house money is always most fun!

If you are interested in hearing more about Fractured Condo buildings in Florida for sale or any other investment opportunities in real estate, Contact Us today for a free consultation.

CLICK HERE to view all homes for sale in Nutley.  Select your own criteria and be sure to contact NJREG to make a showing or sales appointment.  877-688-7582

As most of Essex County did, Nutley had lower numbers in July as opposed to June, where the expiration of the First Time Homebuyer Tax Credit expired to select a home.  Talks of a double dip recession are still there, however with Mortgage rates at an all time low, buyers will still buy and sellers will still sell as long as the price is right.  While we do not anticipate a double-dip, we do feel that home prices will remain stagnant until 2011.

Clearly, the worst is over and Nutley’s bedroom type community will always draw attention.  Check out below for some July 2010 statistics including m/0/m and y/o/y changes.  CLICK HERE to view the full spreadsheet report and full 2009-2010 real estate statistics in Nutley, including performance charts.

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The rate of absorption in Nutley is 7.85 months based on homes placed under contract in July.  A rate of absorption is calculated a couple ways by different agents.  For the purpose of this article, I am using homes available for sale in Nutley divided by the number of homes placed under contract in July.  As an FYI reference, builders typically do not build on speculation until the rate of absorption sits at around 4-5 months.

If you are looking to buy or sell a home in Nutley, NJREG are your experts of Essex County.  Feel free to set up a free consultation so we can evaluate your home situation and give you our opinions on values and market strategies.  We would value an opportunity to work with you and we look forward to hearing from you.

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June 2010 – Nutley NJ Real Estate Report – Sales, Absorption, Opinions

After another month of real estate activity, Nutley has mirrored its performance of 2009.  Literally.  June showed a strong month of sales volume, matching May’s performance of 23 homes sold.  Nutley, my neighboring town is one of the quaintest markets in Essex County.  Homeowners can enjoy walks to some of NJ’s finest authentic restaurants followed by watching a game with your buddies at Franklin Steakhouse, my favorite of them all.

Set an appointment with us to see some of Nutley or get a free CMA report on your home if you are curious of its value prior to selling.

Ok, so as mentioned let’s look at some numbers:

JUNE:

Available Inventory:     122

June Sales Volume:       23

Under Contract:     24

Average Sales Price:      $383,695

Rate of Absorption:  5.3 Months.  A rate of absorption calculates how long it would take to sell the current active inventory based on the most recent month of sales.  The national average is 6.5% so Nutley is fairing pretty well.  As a reference, speculative builders typically wait until the ROA drops to near 4 months.  Almost there.  Looking good and Nutley remains a nice town with good schools and location.  We expect Nutley to remain strong throughout the summer.

To see our complete statistic report along with useful Nutley real estate performance charts, Click Here.  Our charts and analysis will show month over month and year over year performance.

If you are looking for to buy or sell a home in Nutley, New Jersey Real Estate Guys would value an opportunity to interview for the job of representing you in the Nutley housing market.  We are locally convenient for you.  Our experience is unmatched and our strategic protocols work in your favor.  Call us direct at 877.688.7582

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One of my favorite areas of the northern NJ suburbs that I have neglected recently is Nutley.  Nutley is a unique town with its beautiful downtown district lined with some of the best affluent restaurants you will ever visit.  Nutley is the perfect area to raise a family and offers affordable homes with walkability to anything you need.  Considering the fact that I lived right on the border of Nutley, in Bloomfield, I consider Nutley one of my areas I know best.

Real Estate activity in Nutley has been fluctuating to say the least.  Over the last 3 years, the summer is when sales volume peaks, which is considered normal as families with children in school typically buy in the summer in order to be ready for the September school year.  Average sales prices have remained steady, but showed its biggest price correction from March 2009 through the 4th quarter of the same year.  In 2010, February had the lowest amount of sales and the average price of a home sold dropped considerably.  However since then, activity has been strong and prices consistently in the $360,000 ranges.

In looking at our activity charts that are illustrated below, along with our housing market projections, we anticipate that any further drop in prices will not be tremendous and those looking to buy can take advantage of historically low mortgage rates.  If you are expecting to live in your home for 5+ years, chances are that any further price corrections in the market, will be negated by higher future interest rates and long term appreciation benefits.  It is a great time to look for the home that you love and negotiate a deal on it.  Our expertise will help you analyze your favorite homes and look for loopholes on how we can achieve a very fair price for you.

So let’s look at some numbers, shall we? CLICK HERE to view all available homes for sale in Nutley.

In 2009, there were an average of 17 homes sold per month.  The average price of a home sold in 2009 was $364,632.

In 2010, sales volume is slightly down with a monthly average of about 16 homes per month. The average price of a home sold in Nutley this year has been $360,579, hardly enough of a drop from last year to even dignify.

Currently, there are 165 Homes for sale in Nutley.  The average listed price of those homes is $415,188.  During the month of May 2010, there were 23 home sales.  The rate of absorption in Nutley is 7.2 months.  As a reference, homebuilders that build on speculation typically wait until the rate of absorption settles at 4 months or less.  Nutley has a lot of available inventory and sales need to pick up or new inventory has to slow down.

Here are some Nutley real estate charts. Click on them to enlarge.  View spreadsheet by clicking Nutley Housing Market Report

Indicative of these charts, we anticipate a busy summer and then sales should taper off to the normal levels.  Although the First Time Homebuyer Tax Credit has expired, we believe that low mortgage rates will allow volume to maintain itself throughout the year.

If you are looking for a home in Nutley or would like to discuss market conditions, we offer free consultations at your convenience.  Giving us an opportunity to learn about your criteria will help us understand where we need to be to get you that great deal.  You can contact us by e-mail or by calling us direct at 877-688-7582.  We look forward to hearing from you.

New Jersey Real Estate Guys also owns a very popular real estate firm in Ft. Myers, FL.  Aside from general real estate, we pride ourselves on diversification in our customers portfolios by becoming diverse property owners.  In a lot of areas today, buying real estate is favorable given the market conditions regarding pricepoints and rental rates.  Today offers unprecedented pricepoints and the time where most millionaires are made. 

In my opinion, leading the nation in appeal for second home buyers or investors is Southwest Florida.  Naples and Ft. Myers seem to be absolutely on an aggressive rebound.  The median home values are up nearly 20% since February 2009.  At its peak the median home price in Lee County (Ft. Myers / Cape Coral) was ~$345,000.  In February 2009, the market hit its bottom at settling on a median of $84,000.  Today, we are at $101,000.  Additionally, unemployment has dropped 1.4% over the last 2 months respectively.  Homes below the conforming loan limits of $417,000 are selling very quick and you can now buy a respectable house in a great area for less than $250,000.  In the past when investors and second home buyers thought they were priced out of Paradise, today offers historically low prices.  Compounded by low mortgage rates, homes are flying off the shelves.  I invite you to come down and see us.  I always fly in and out of Ft. Myers Int’l Airport.  Come down and see for yourself!

Another great area for opportunity is the Smoky Mountains region of Tennessee.  Purchasing a resort cabin and applying it to their rental program could be very lucrative to your portfolio.  The “Save Our Mountains Act” has applied a construction moratorium in the Smokies in order to preserve the environment and protect views of current development.  Recently, we assisted in restructuring the debt of a large resort.  Our intentions was to bring developer land price payoff down to favorably combine with the cost of construction of an unbelievable cabin.  If you are interested in looking into Tennessee, CLICK HERE to see the article and executive summary to one of the most favorable investment opportunities we have seen in a while.  Because of its severe lack of cabins, and Wahoo Zipline which attracts 100,000 visitors annually, the developer is putting his money where his mouth is and offering a developer guarantee of 15% ROI for each of the first 3 years based off the purchase price.  Our FL brokerage, who is also a licensed brokerage in Tennessee is acting as the exclusive sales and marketing firm for this resort.  We are reimbursing travel expenses with all deals closed.

As for New Jersey income property, Section 8 compliant multi-family homes are becoming very popular especially with the Housing Authority alleviating their waiting list by handing out an additional $10 million in rental vouchers.  Section 8 in Newark is most popular, followed by pockets of Passaic County.  CLICK HERE to see our article on Section 8.  Morris County has been a hot pocket for multi-family home investing.  Although most are not favorable for Section 8, higher rental rates are being realized as supply is lower than most areas of the county, and much less than Essex County.

If you are interested in discussing different real estate investment possibilities, call Scott at 877-688-7582 or Contact Us by e-mail.  Ask us about investing using your current or a future IRA account.  The benefits are unbelievable.

As many are aware, we love to explore out of the box for income real estate opportunity.  During a trip to Sterling Springs Resort in the Gaitlinburg area of Tennessee at the beginning of the year, I noticed a glaring problem with availability.  The resort is 5 star and one of the most beautiful settings I have seen.  My question was why there were only 33 cabins available on a property that had nearly 350 acres.  I met the developer one afternoon and got to talking.  The problem was simple.  He did not have access to construction financing since the markets collapsed.

As I questioned him about the structure of the resort, he mentioned that each lot had a payoff of $75,000 to the bank.  I began to look at the idea of bringing real estate investors to the table to build out this resort, but I was mostly interested in land + construction, and my initial goal was to achieve a 20% discount all-in from a current market value standpoint.  Once all was said and done, our immediate equity position was a surprising 44% based on our price of $149,000 and a recent appraised value by a local lender of $225,000.

Fast forward to May of this year.  I worked with the developer and the bank with the note on the land and we were able to restructure the debt down to a payoff of $35,000.  We also designed a cost/energy efficient cabin that would give the resort a new look.  Our new cabins would be spherical in shape and offer unobstructed views of the Smoky Mountains.  All cabins would come turn-key with furnishings as a typical hotel unit would come.  To see entire executive summary and offering memorandum, CLICK HERE.  Each investor will have full rights to use their own cabin at any time.

Some caveats we have worked into the deal:

• Offered turnkey for $149,000.  Current appraisal as of July 17, 2010 of $225,000.  Will provide upon request.
• Includes Developer Guarantee in contract of $24,000 in NET Income per year for the first 3 years which equates to a 15.10% Capitalization Rate.
• 100% Passive.  Managed by on-site management company.
• Sales are not publicly marketed until 2011.  Price increases by phases at 12-15% per phase.  Each phase consisting of 10 cabins.

Some amenities currently on site:

• Athletic Field (currently set-up for soccer)
• Full sized pool with cabanas, sun deck, volleyball
• WAHOO ZIPLINE :  Biggest attraction.  Attracts 100,000 visitors annually.  Largest zipline tour in the country.
• 4,000 Square Foot entertaining clubhouse overlooking the Smokies.
• Snack Bar
• This resort is 8 miles to Gaitlinburg and 6 miles to Pigeon Forge.  Pigeon Forge is the home to Dollywood, one of the largest theme parks in the country.

Amenities to be completed after first 10 private sales:

• 6,000 square foot spa complete with full spa services, fitness center, etc.

If you have an appetite for a tremendous out of state opportunity contact us for more details.

For all of you waiting to buy a home in Montclair, the chances of you finding your dream home for the price you want could be deteriorating.  Out of all of the micro markets we cover in Northern NJ, Montclair seems to be holding its ground and getting stronger.  This is likely due to the downward price correction we experienced in town in addition to very low mortgage rates today at 4.25%.

Here’s something for you doom and gloomers.  Montclair, NJ single family home average sales price is up 10% year to date than previous year of 2009.  In 2009, the average price of a home sold was $595,068.  So far in 2010, the average price of a home sold is $661,028.  If you believe charts, which we do, we feel that Montclair is bouncing along the bottom right now, which is great news.  The only way to go is up, right??!!  Sales inventory has steadily increased month over month with the exception of July (skewed due to tax credit expiring) and prices are up.  I’m the furthest from a cheerleading realtor and I’ll call it like I see it…good news or not, but Montclair is looking like there is a good balance between the buyer/seller market.  Look at it this way.  Hoboken has over 450 available condos for sale.  Only 50 sold in July.  The rate of absorption is nowhere near Montclair.  Take a look at some July numbers in this chart below:

Sorry I don’t have time to post the pictures on this post, but if you want to see the charts and figures that I normally post both month over month and year over year CLICK HERE to see the PDF report.  You’ll see what I mean about increasing averages in Montclair.

If you are looking to buy or sell a home in Montclair, you’ve come to the right place.  New Jersey Real Estate Guys is one of the fastest growing and innovative services in the area.  I am a home grown and even went to school at MSU so I can share tons of years of experiences with you!  Please hit the CONTACT button on the upper part of the website or you can call us at 877-688-7582.  Looking forward to hearing from you.

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July 2010 Montclair NJ Review in Real Estate

CLICK HERE to view all homes for sale in Montclair and set an appointment with NJREG for a free consultation.

At least once a month I try to take a broad drive around Montclair.  I’ll do some drive-bys of some homes for sale and some that sold, etc.  During my drive last week I didn’t notice as many FOR SALE signs as I saw last month.  I guess I can credit the Tax Credit deadline?  Then I looked at the stats today.  In comparison with 188 homes for sale on July 1, there are 181 for sale today (Aug 2 and per the GSMLS).

So who has heard of the new ARC Effect?  ARC is NJ/NY’s biggest investment in transit.  It involves the construction of a second commuter rail tunnel that will connect NJ Transit’s existing rail network and Metro-North’s Port Jervis and Pascack Valley service with a new terminal station at 34th St in NYC.  In a nutshell, travel time for commuters from Montclair, for one, will substantially improve to get into the city.  This means no more connections in Secaucus or Hoboken.  Based on past rail statistics in NJ and San Francisco, home prices would increase an average of $23,000 per home.  Homes within walking distance of stations would increase by $34,000, according to this ARC study.  To continue reading about the ARC Program and the Effect they are looking at, CLICK HERE.

So let’s look at some July housing statistics, m/o/m and y/o/y figures to see where this Montclair market is currently at.

See Activity charts below and click to enlarge.

As expected, July’s numbers are less impressive than June’s with the expiration of the Homebuyer Tax Credit.  Take this for what it’s worth.  I hear a lot of chatter among Hoboken, Brooklyn, and NYC that Montclair is one of 3 very desirable areas especially with its commute and multiple downtowns.  The other two areas are Maplewood and Westfield.  Sure, Maplewood is a little more affordable, but Montclair will always have that “Park Slope” comparison and appeal to potential homeowners.

If you are looking to buy or sell a home and looking for a Montclair real estate pro, please contact us.  I am a Montclairian myself and would value an opportunity to show you why Montclair was my choice for living, and even college.  Yes, I’m an MSU Red Hawk alum!

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June 2010 Review | Montclair NJ Real Estate Report

CLICK HERE to view all homes for sale in Montclair and set an appointment with NJREG for a free consultation.

As a local Montclairian myself, I must say that I am pleased with how the housing market performed in June.  Sales volume was way up.  The average price of a home sold slid for the second straight month, although the month of April had a couple of high sales that sort of skewed those figures from the norm.

It looks like the First Time Homebuyer Tax Credit helped the market a little more than expected.  We’ll see over the course of the summer how things pan out.

Home prices declined 1 percent in the New York metropolitan area, which include Montclair, from April 2009 to April 2010, the Standard & Poor’s Case-Shiller index reported Tuesday. Prices in the region are back to the levels of April 2004, and are 21.7 percent below their peaks in June 2006.

June:

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See housing market charts below.  Click on charts to enlarge.  For complete statistics for year over year and month over month activity CLICK HERE

Indicative of these charts, sales activity is very strong.  If you are looking to sell your home or would like a free analysis on your value, we would value an opportunity to meet with you.  If you are looking to buy a home, Montclair offers a wide range of unique homes.  Don’t miss out on the opportunity to buy low in conjunction with low mortgage rates.  Start looking for the house that is perfect for you.

You can call us direct at 877-688-7582 or send us an e-mail.  We look forward to hearing from you!

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May 2010 Montclair NJ Real Estate Report

CLICK HERE to view all homes for sale in Montclair

As a homegrown Montclairian myself, I always like to analyze the market.  I’ve lived off of Valley Rd and also spent 2 years in prestigious Upper Montclair’s Blanton Hall dorms of Montlair State University …Montclair posted far more sales volume in May than it did all previous months of 2010, a great sign.  Prices dropped from April sales figures but Montclair seems to be bouncing around trying to find a true bottom.  Let’s look at the numbers provided by Garden State MLS reference.  Data provided is for single family homes only.

On a side note, prices are slightly up in 2010 from 2009 regarding average sales price and volume.  We are 4 homes sold ahead of 2009 at the current pace.  The average sales price for the entire 2009 year was $671,880.  To date, the average sales price for a home in Montclair in 2010 has ben $679,543, an entire 1.2% higher!  Nothing crazy, but at least its not a negative!

We are expecting sales volume to pick up steam during the summer months.  If you look at the sales volume chart below, 2008 and 2009 showed dramatic increases in sales volume during the warmer months.  Although there are many reasons as to why this is, most people say that families want to be settled prior to the start of the new school year.  Montclair is the home to blue ribbon school systems which is a very big draw for the area.  See school info in Montclair.

Contact New Jersey Real Estate Guys to interview us for the job of buying or selling your home.

May 2010

Homes Sold: 30 (+22.70% since April)

Average Sales Price: $608,418 (+12.0% since April)

Average Days on Market: 60

Available Homes for sale: 186 – The median price of homes listed is $549,000, a more appropriate figure than using the average when analyzing housing markets.

Rate of Absorption: 6.2 Months.  Montclair is sitting right about at the national average of 6 months of Rate of Absorption.  As a reference, speculative builders typically look for the absorption rate to hit 4 months or less before taking on any decent sized projects.

Property Taxes: Using the median asking price of $549,000, property taxes are showing about $15,000 a year, however those homes listed have an assessed value of $615,000.  Based on new homeowner purchase, the new homeowner may want to consider a tax appeal with the Tax Assessors office.  Achieving an assessed value for $549,000 would lower your property taxes by nearly $2,000 per year.  If you are looking to file a tax appeal using a professional real estate tax attorney, start here.  If you want to take the task on yourself, the filing fee is $49.95 and you can download the A-1 form here.  Or call the Essex County Board of Taxation at 973.395.8525.

Under Contract: There are currently 85 homes under contract and beyond attorney review in Montclair.  Typically the contract to closing times run 60 days on average, however with some homes being sold as a short sale, lenders will make it difficult to maintain this average on short sale homes.  The average listed price of homes under contract is $665,611.  Due to exact sales prices not disclosed until closing, we will see how final sales shake out in some of our other summer reports of Montclair NJ Real Estate.

Here are some year over year and month over month charts for your review.  Click on charts to enlarge.  To view our month over month and year over year charting statistics for Montclair, CLICK HERE

If you are looking for a home in Montclair or looking for area information, please call New Jersey Real Estate Guys at 877-688-7582.  We offer free home buying seminars and consultations for the Montclair area.  As we consistently show, we do more real estate analysis than anyone and are confident we can put you in a great position to buy or sell most efficiently.  We would value an opportunity to meet and discuss.

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April 2010 Montclair NJ Real Estate Report | Inventory, Sales Volume, Absorption

Ok, Montclair.  You did a little better than last month but not by much!  There were 19 sales this month as opposed to 14 in March.   Let’s look at some numbers.

April Details provided by reference to Garden State MLS.

Single Family Homes Sold: 19 (+26.50%) since last month

Average Sales Price: $689,595  (+14.6%) since last month

Average Days on Market: 67

Current Inventory for Sale: 186

Rate of Absorption 9.78 Months  Note:  Builders typically wait until rate of absorption hits 4                      months before taking on speculative construction projects.

If you are looking for a home in Montclair or looking for area information, please call New Jersey Real Estate Guys at 877-688-7582.  We offer free home buying seminars and consultations for the Montclair area.

March 2010 Montclair, NJ Real Estate Report

So there is some good news and bad news for Montclair.  The good news is that March sales volume more than doubled February.  The bad news is that it is still performing far worse than the end of the year of 2009 when we had some solid numbers.  Retail vacancies are climbing and rental rates are dropping, something we expected.

During the month of March, 2010 there were 14 sales of single family homes in Montclair. The average selling price was $589,142, a clear indication that the lower priced homes (entry level) are selling much quicker.  The average current listed price of homes for sale in Montclair is $923,414.

Let’s compare Q1 of 2009 and 2010 respectively:

2009 Q1:  29 Homes sold with an average selling price of $678,109.

2010 Q1:  39 Homes sold with an average selling price of $669,692.

Using March sales volume and the current level of inventory, Montclair has a Rate of Absorption of just over 8 months, up from 3.38 months in January.

The next few months will be interesting.  Using the First Time Homebuyer Tax Credit and the Government purchases of MBS as a crutch, our housing market will have to stand on its own so we can see the real results of the housing market.

Expect some minor home price drops over the next few months while the housing market searches for its true identity.  June and July will be very telling months.

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February 2010 Round Up – Montclair NJ Home Sales / Inventory / News

So January started out a bit slow.  I always blame slow January’s on the ever-changing bank guidelines that always come out in fury at the beginning of the year.  Let’s not use that as an excuse though.  I still predict that the second half of 2010 will be quite indicative of a possibly soon recovery.  You have the First Time Homebuyer Tax Credit expiring in June, the Fed is going to stop purchasing Mortgage Backed Securities (MBA’s), and Consumer Confidence could sink when they turn on CNN.

Anyway, this is all hearsay.  I am an advocate of letting the market play it out itself.  February was VERRRRY slow for single family home sales in Montclair.

Let’s start with Inventory Levels.  As of March 1, 2010, there are 95 Single Family Homes for sale in Montclair with an average listed price of $990,214.

During the month of February, only 7 homes sold in Montclair. The average price of a home sold was $733,414.  Indicative of changing bank guidelines is the lack of closings during February despite 35 homes currently in contract or Attorney Review at the moment.  So despite a slow sales volume month, there are a few dozen homes written up, which is positive.

Absorption Rate:  An absorption rate indicates the number of months it takes to sell the current inventory at the present rate of sales. As of March 1, there are 95 Single Family Homes for sale.  February showed only 7 closings which mathematically puts Montclair’s rate of absorption at 13.6 Months, the worst its been in a long time.  Typical absorption rates in Montclair is between 3-5 months.  Using home sales volume over the last 9 months, I would say that we can chalk February up to just a bad month.  Nothing too concerning here unless this absorption rate repeats itself in March and April.

So, could the expiration of the First Time Homebuyer Tax Credit have the same outcome as the expiration of Cash For Clunkers?  If you remember, once Cash For Clunkers expired, car salesmen were sitting in their office playing tiddlywinks.  Things slowed drastically.  Let’s hope that real estate is different than the auto industry, but time will only tell.  The second half of the year will be interesting for sure.

That said, there are still great deals out there.  If you fall in love with a house, don’t hesitate to look into possibly bidding on it.  Good homes at the right price are still selling quickly.  If the home you love is a good deal, make a play for it before someone else does.

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January 2010 Real Estate Recap | Sales | Absorption

Well, chalk up one in the books as January is over with.  A strong December in Montclair was followed by a modest January.  We expected sales to dip a little in January with the new year and the fact that banks implement a new set of guidelines.  Typically it takes about 45 days to return to normal market conditions.  The absorption rate for Montclair fell from 3.38 Months in December 2009 to almost 4.9 in January 2010.  The current rate of absorption is not worrisome as Montclair is below the national average again….signs of a recovering housing market.

During the month of January, 17 homes sold with an average sales price of $737,941.  The average home sold had been on the market for an average of 82 days.  This is a tremendous improvement from 1 year ago.  In January 2009, only 8 homes sold and the average price was $634,263.  The recent January in 2010 showed almost a 100% improvement in sales activity and a close 15% increase in average selling price.

I am currently at the airport as I type this, but tomorrow I will update this report with charts and graphs to give you a better feel for the market.  Till then, take it easy!

Annual Recap | Real Estate Report

Happy New Year, Montclair!! After a rather interesting year, I think the real estate market deserves a “State of the Market Report”. In this report, we will look at last months statistics, overall yearly results, and comparisons to 2008. Some of you may want to sit down before reading, but all in all, we currently see a great opportunity in one of NJ’s best bedroom communities with immediate access to New York City. Can’t beat today’s value in Montclair.  Be sure to browse all Montclair NJ Homes for sale via our exclusive MLS / IDX system.

Without further ado, here goes! All information is comprised from the Garden State MLS.

2008

• 341 Homes Sold During 2008
• Average Sales Price: $740,717

2009

• 307 Homes Sold During 2009
• Average Sales Price: $591,192

Based off of 2008 – 2009 sales activity, there was a 10% drop in sales in 2009. Overall prices are down 21% in Montclair, NJ in 2009 when compared to 2008.

Charts below will show 2008-2009 activity.  Click to enlarge

• In December, 2008 a total of 21 homes sold in Montclair with an average sales price of $627,416.
• In December, 2009, a total of 34 homes sold in Montclair with an average sales price of $538,800.

Absorption Rate:  An absorption rate indicates the number of months it takes to sell the current inventory at the present rate of sales. As of January 1, 2010, there are 115 Homes for sale in Montclair.  During December 2009, there were 34 homes that sold.  The rate of absorption in Montclair today is 3.38 Months.  A year ago today, the absorption rate of Montclair was over 6 months.

As the charts above indicate, prices have plummeted from peak values.  Sales activity is up and prices are beginning to stabilize.  Assuming Montclair experiences any further downward value adjustments, the tradeoff would be the First Time Homebuyer Tax Credit and Low Mortgage Rates as we do not anticipate any further drastic price adjustments.  The combination of the 2 should negate the Catch 22 affect, thus creates an opportunistic time to buy real estate in Montclair.

A previous report written by us in February 2009 pointed to bargain homes in Montclair listed at under $400,000.  We mentioned the state of the market as a reason why you were seeing great deals in Montclair.   Today, those homes are long gone and the only homes listed in this area for under $400,000 are far more inferior than the ones we referred to.

Taking into consideration the convenience to New York City, infamous downtown district, expansions of Montclair State University, and beautiful Upper Montclair section of the Township, we anticipate that prices stagnate over the course of 2010.  We have seen a healthy improvement in affordability which is the reason for increased sales. With a more affordable market within the NYC metro area, we expect prices to stagnate during 2010 and begin historical appreciation trends in Q1 2011. That said, our prediction is that Montclair provides a very good opportunity to buy as it seems the market is tinkering with the bottom of the housing market.  Watch Q3 of 2010 as the First Time Homebuyer Tax Credit should expire.  Lower real estate prices will predominantly be the driving force behind the Montclair housing market.  With unemployment expected to peak and smoke beginning to dissipate in the recession, our crystal ball should be pretty close!

If you are looking to buy or sell real estate in Montclair, look no further than NJ Real Estate Guys.  Scott Allan, founder, is from Montclair and takes great pride in the real estate market and his unique knowledge and service to both buyers and sellers.  Contact Scott today for a consultation.  We’d love an opportunity to work with you on your real estate needs!

November 2009 Report | Montclair NJ Real Estate (statitstics comprised from Garden State MLS and based on Single Family Homes)

As most of you know, I am from Montclair.  Went to college there, and know every street in fine detail.  So let’s do a report on the housing market, homes for sale, etc.  Montclair has a wide range of homes consisting of beautiful Georgians, Vintage Victorians, cottages, and spacious colonials.  The housing market has been active lately, a nice sign for the local real estate market.  If you are looking to sell or buy a home in Montcl

It’s been less than 24 hours since I wrote this article.  Early this morning the new PNC Financial projections came out, strengthening my opinion for a strong rebound over the next 12 months.  Let me retract “strong” and replace it with words like “satisfying”, “better than nothing”, or “shit, I’ll take anything”. Here’s some captions….Continue below to read our article.  Keep in mind, this report is for NORTHERN NEW JERSEY.  Other supporting article

Jobs

* PNC predicts northern New Jersey’s 2010 and 2011 unemployment rate will be 9.6 percent and 8.7 percent, respectively, amid increasing stability in the financial services sector.

* The region’s annual jobs growth rate was negative 4.6 percent last year and PNC forecasts a negative 1.5 percent pace for 2010. The trend is slowly turning and jobs will expand at a 1.3 percent rate in 2011, the economists predict.

Housing

* Northern New Jersey home prices fell 10.4 percent last year, according to the S&P/Case-Shiller index, and PNC forecasts prices will decline another 1.6 percent this year and rise 1.5 percent in 2011.

* Meanwhile, U.S. home prices dropped 11.5 percent last year. PNC predicts they will advance 2.1 percent this year and 2.6 percent in 2011.

Income

* The median northern New Jersey household income, which was $76,900 in 2009, will increase to $78,200 this year and $80,400 in 2011.

* PNC predicts northern New Jersey personal incomes, which fell 2.1 percent in 2009, will rise 2.2 percent this year and 3.8 percent in 2011.

* U.S. personal incomes slid 1.7 percent last year. PNC predicts they will gain 2.9 percent this year and 4.4 percent in 2011.

New Jersey Real Estate Guys Article

I speak to dozens of people per week that are browsing homes for sale and try to answer questions on when and why to buy real estate. Most noticeably is the skepticism that everyone has because although they WANT to buy, they are unsure and scared if this is the right time to buy real estate. My first response is that the worst is over. The subprime mess is almost history and even though sellers/homeowners may be under water, the short sale process has become a more condusive approach since last year.

That said, real estate is still moving at competetive prices, indicative from our charts that we update every month in our updates. I recommend that with the inventory out there, it is smart to be picky. You have every right to be so. Low mortgage rates is one reason that you should buy. Mortgage rates should stay low well into 2011. I refuse to speculate beyond a year, but after 2011, who knows what happens. What I do know is that the job reports are coming back positive and economic growth should continue. The housing market leans almost entirely on job growth.

Right now, there is a lot of pent up demand. Buyers on the fence waiting are joined by millions of others. As long as job growth continues, real estate demand will continue to climb. Don’t forget about the baby boomer era we are in. The baby boomers children are now entering the age of home ownership. This will add on to the demand that is out there.  This pent up demand will explode in 2011.

One factor that most people are not aware of is the “shadow inventory” of homes that banks are either holding or the number of delinquent mortgages. In NJ at the moment, almost 10% of mortgages are in some type of default stages. Of that 10%, it is likely that not even half of those people lose their homes. Lenders today are more inclined to work with these homeowners to make their payments easier, whether that is a principal, payment, and/or interest rate reduction.  It’s inevitable that this happens.  It is far cheaper for a lender to do this than to foreclose on the home.  Believe me, the LAST thing a lender wants to do today is foreclose.  It is also cheaper to offer a short sale on a home.  A short sale is an agreed upon sales price less than the amount of the current payoff amount.

A perfect example I can make for an improving housing market is a recent experience.  I have access to a couple of lenders and asset managers that I buy REO’s from.  I either buy REO’s personally for investment or I offer them to my network of investors.  I was getting homes at about 25% discounts from current appraised values.  I barely get a call from those lenders and asset managers anymore.  My most recent conversation with a local asset manager was why should they sell to me anymore at 25% discount when they can list their homes on the retail market and get 20% more for their homes within 90 days.  Too bad for me, good for them.  Ultimately, its a good sign that real estate is moving quicker today when priced competetively.

I whole heartedly believe that 2011 is going to be a mini-boom for real estate, especially in areas like Hoboken, where we are directly impacted by the financial market in NYC that continues to improve every month.  Hiring freezes are being lifted as more and more investors play the different markets.  Although real estate prices may not skyrocket, prices will not free-fall and homeowners will be enticed by a “missing the boat” feeling, low rates, and more favorable financing options.

So for Northern New Jersey real estate, my suggestion is this:  If you find a home you LOVE, buy it today.  Love it though.  Don’t THINK you love it.  If the housing market drops another 5% for instance, your longer term gains combined with today’s low interest rates should negate that loss in a short amount of time.  Most importantly, you still have the home you love.  If you don’t buy it, you will be in competition with many more people next year and your opportunity cost is not having the “home of your dreams”.   You heard it hear first.

What a normal, boring month for Rutherford.  Sales have not reached double digits even once this year on a monthly basis.  Are homebuyers favoring Lyndhurst right now?  Doubtful, I don’t think anything along the lines of preference changed.  The expiration of the Homebuyer Tax Credit had a bit to play in the sluggish month, although as mentioned, this is kind of the norm for Rutherford.  Not entirely a bad thing.

I was with a client last week showing a house on Feronia Way and they said the same thing a friend of mine in Rutherford says.  Rutherford has one of the most convenient transit systems and has an overwhelming “at home” feeling than the surrounding areas.  Additionally, the school system has achieved higher recognition which always is a great selling point.

Has everyone heard about the ARC Program?  This will definately help home values in the area including Rutherford.  Instead of me blabbing about ARC working with Port Authority to build an additional tunnel into Manhattan giving the Main and Bergen Line DIRECT access into Manhattan with no Secaucus/Hoboken connection, CLICK HERE.  Ooops…I think I just gave it away.

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To preview the y/o/y and m/o/m charts and official New Jersey Real Estate Guys statistics for Rutherford, CLICK HERE.  This will show you 2009-2010 figures.

As always, if you are looking to buy or sell a home in Rutherford, New Jersey Real Estate Guys would value an opportunity to work with you and give you our opinions on the local market to assist in your buying / selling needs.  Feel free to call us at 877.688.7582.

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Another area in the suburbs we like is Rutherford, NJ, a quiet and peaceful place for you and your family and only minutes to NYC and the other metro areas of Northern NJ. For you partiers out there, Rutherford is a B.Y.O.B town with plenty of great restaurants and landscape to enjoy. Armed with a great school system, real estate taxes are less than Montclair at least with just as much convenience.

One very big asset for Rutherford is its direct public transportation system into Manhattan which takes about 15 minutes from door to door via NJ Transit. Historically, Rutherford has a quiet real estate market with limited availability, thus, fewer monthly sales than other markets with more inventory. That being said, recognizing the low inventory, sales are not reaching the level they need to in order to drive down inventory.

To view all homes for sale in Rutherford CLICK HERE. Be sure to fill in your desired criteria using our customized search tool. Contact us at 877-688-7582 to set up a showing appointment or follow the showing instructions on each individual listing in your search.

Prices are down about 18% since its peak have average sales prices have slid since the start of 2010. During the second half of 2009, the average price of a home sold in Rutherford bounced around $425,000. Since February 2010, the average price of a home sold in Rutherford is bouncing around $375,000. Currently there is a home under contract for $1,250,000 that should drive up the average sales price in July or August, but we anticipate that the average will set below $400,000 throughout 2010 until inventory is absorbed at a faster pace. Let’s look at the most recent month of June.

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Rate of Absorption: An absorption rate indicates the number of months it takes to sell the current inventory at the present rate of sales. Based on the figures above, the absorption rate remains high in Rutherford. Hopefully the 18 homes under contract close in July to lower the rate of absorption. Sellers being pressured with lowering prices will likely conceed a little more to buyers if they are motivated.

To check out a full statistic report on Rutherford real estate CLICK HERE. This report will show month over month and year over year comparisons of sales volume and average selling prices.

If you are looking to buy or sell a home in Rutherford, we would value an opportunity to meet and discuss your options. We can provide you the due diligence to assist in your decision in the housing market. You can e-mail us or call me direct at 877.688.7582