According to a mid-August
report by the National Association of Realtors®, some improvement is projected
for existing-home sales in the months ahead, with broader gains seen by the
fourth quarter as buyers take advantage of new provisions provided through the
recently passed housing stimulus bill.
The Pending Home Sales
Index (PHSI), a forward-looking indicator based on contracts signed in June,
rose 5.3 percent to 89.0 from a downwardly revised reading of 84.5 in May, but
remains 12.3 percent below June 2007 when it stood at 101.4.
“The vacillation of data
from one month to the next indicates a housing market in transition,” said NAR
Chief Economist Lawrence Yun, adding that sales have been in a pattern of rising
and falling within a fairly narrow range. “The rise in pending home sales was
broad-based with all four regions showing gains. This is welcome news because a
rise in contract activity is necessary for an overall housing recovery. With a
tax credit now available to first-time home buyers, increases in home sales
could be sustained with the momentum carrying into 2009.”
The PHSI in the South
jumped 9.3 percent to 92.4 in June; rose 4.6 percent to 101.0 in the West;
increased 3.4 percent to 79.6 in the East; and inched upward 1.3 percent to 79.6
in the Midwest.
“Buyers entering the
hardest-hit markets, in some cases with multiple-bid offers, may have put a
floor on prices,” said Yun, adding that home prices did not fall as much as
anticipated in the second quarter. "In addition, rising commodity prices and
higher construction costs have resulted in a very unusual market today with
existing-home prices being less than replacement building costs in some areas.
Home prices are projected to increase 3 to 6 percent in 2009.”
The 30-year fixed-rate
mortgage is expected to trend up to 6.5 percent by the end of 2008, and then
hold at that level for most of next year, the report said.
The FOMC and Interest Rates – 4Q08
By: Tim McLaughlin
The FOMC (Federal Open Market Committee) released their statement regarding
interest rates (left static at a 2.00% Fed Funds rate) and the economy/market
in general last Tuesday. Below are some of the highlights:
“Economic activity expanded in the second quarter, partly reflecting growth in
consumer spending and exports. However, labor markets have softened further and
financial markets remain under considerable stress. Tight credit conditions,
the ongoing housing contraction, and elevated energy prices are likely to weigh
on economic growth over the next few quarters. Over time, the substantial
easing of monetary policy, combined with ongoing measures to foster market
liquidity, should help to promote moderate economic growth. Inflation has been
high, spurred by the earlier increases in the prices of energy and some other
commodities, and some indicators of inflation expectations have been elevated.
The Committee expects inflation to moderate later this year and next year, but
the inflation outlook remains highly uncertain. Although downside risks to
growth remain, the upside risks to inflation are also of significant concern to
the Committee. The Committee will continue to monitor economic and financial
developments and will act as needed to promote sustainable economic growth and
price stability.”
Takeaways: The Fed is balancing a delicate act right now between two variables.
On one side, you have factors that would benefit from lower rates: the housing
sector, the general economy, all variable rate debt (ARM’s, credit cards, home
equity loans, etc) and the confidence level of the end consumer. On the other
side, you have rising inflation/oil prices, both base and core, the value of
the dollar declining globally, and the fear that if the Fed does not catch up
to rising costs quick enough, we could be in a mid 1970’s scenario all over
again.
We anticipate that the Fed will hold off as long as possible on increasing
rates, but given the pace of inflation, it will be no later than 4Q08 (they
would probably prefer to wait until after the November elections, but they may
not be able to). Regardless, we are already starting to feel the anticipated
increase in rate (based on Fed Fund Futures). The inflation data (CPI and PPI)
due out over next two weeks will no doubt impact this thought process.
Great minds have
purposes, others have wishes.
-- Washington Irving
Area Schools
Affect Home Values
You've most likely heard
that location, location, location is the most important factor in real estate.
While this may be true, another important factor to consider as you try to find
the best neighborhoods for resale value is the quality of the local school
system. Even if you don’t have children, it would be prudent to research the
closest schools before purchasing a home.
By placing a call to the
local school district, you should be able to find out what type of funding area
students receive, what the average class size is, and how well students have
performed on standardized tests. In addition, find out if they offer any special
programs, what percentage of students graduate and go on to college, and whether
or not the district will be opening or closing any schools in the near future.
For many prospective home
buyers with children (or plan to), the quality and reputation of the local
school system may be as critical to their buying decision as the appeal of the
home itself. Regardless of where the home is located, the quality and reputation
of the schools will affect the home's value, not only when you buy, but when you
sell.
Rated
#1 Real Estate Website In NJ
By Point2 Homes
My
Website Stats 2007:
Total Sessions 32,832
Total Pageviews 136,218
Total Hits 602,725
Average Sessions Per Day 89.95
Average Pageviews Per Day 373.20
Average Hits Per Day 1651.30
Your home WILL be noticed on my site.
Over 80% of Buyers go to the
Internet first
This is my
Internet
List with me or stay as a For Sale By
Owner and...
Most folks are about as
happy as they make up their minds to be. --
Abraham Lincoln
Tankless
Water Heaters Make Good Sense
If your current water
heater is on its last leg, or you've decided you need a better unit to suit
your needs, consider a tankless water heater when you go shopping.
Tankless water heaters
can save energy and money and deliver an endless flow of hot water. While a
conventional tank-style water heater continuously stores 40 to 80 gallons of
water and keeps it hot until it’s needed, a tankless water heater only heats
water when it's needed. Obviously, keeping 40 to 80 gallons of water hot 24
hours a day, seven days a week, month after month, wastes considerable energy.
Instead of continuously heating a large tank of water, a tankless water heater
circulates incoming water through a series of electric coils or gas burners
that heat up automatically when you turn on a hot water tap or appliance. When
you turn off the faucet, the elements or burners turn off. In other words,
you're only burning energy when you have a demand for hot water.
There are several
varieties of tankless water heaters, from small electric point-of-use models
(for use at a specific location, such as a kitchen or bathroom sink) to larger
gas appliances that supply the entire house. Point of use models start around
$150 and larger units capable of supplying more hot water start around $750.
96
East Main StreetRockaway,
NJ
07866
888-US-INSPECT
Home Inspector Of Record: Daniel
Helmstetter NJ Licensed Home Inspector Lic. # 24GI00012800
Vendors
If you are a vendor and would like to add to my eNewsletter, which goes out to
over 2000 people, please contact me.
Tip
of the Month
Don’t Sweat It, Check It Out…
When your buyer is using a home
inspector you never heard of because their recommendation came from
the “friend of a friend of their second cousin” it’s best to check
if the inspector is licensed by the State of NJ.
You and your client can confirm if he is
a NJ Licensed Home Inspector by visiting this NJ State website and
entering the inspector’s last name to find out.
One of
the most important ways to manifest integrity is to be loyal to
those who are not present. In doing so, we build the trust of those
who are present.
-- Stephen Covey
New cul-de-sac in
Oakland, NJ almost ready to start building your Dream home.
There are four 1-acre lots located in a wooded area of
Oakland. You have the option of buying the cul-de-sac or an
individual lot. The choice is yours.
For information on
pricing, please contact
me or call me at 201-280-2884.
A vacation is what you
take when you can no longer take what you've been taking. -- Earl
Wilson
Pack Smart and Save Money
Now that many airlines
are charging to check your luggage it makes more sense than ever to just
"carry-on." The problem is fitting a week or more worth of clothing into a
22-inch suitcase. Nearly 90 percent of all domestic airlines will allow a bag
that is 22 x 14 x 9; the external pockets are included in this dimension. In
addition to one carry-on bag, you are allowed one "personal Item" which can
include a briefcase, purse, or a small book-bag-style backpack. Following are
some tips to help you maximize your space:
When beginning to
pack, make a list of the clothing you will need. Try to mix and match items
that you can wear more than once. Limit yourself to two pairs of shoes. If an
item is not on the list, don't pack it. Make sure all items are buttoned and
zipped. Place all toiletries, such as lotions and shampoos, in a clear zip
lock bag. No liquids can exceed 3 ounces. Pack your shoes first, placing the
soles of the shoes flat against the walls of the luggage.
Place a zip lock bag
full of your undergarments in the center (later you can use the bag to
separate the ones you haven't worn yet), along with the bag of toiletries.
When packing clothing, start with your pants. Lay them lengthwise across the
suitcase, placing the waistband against the edge and letting the ends hang
out over the side. Place the second pair on top with the waist band at the
opposite edge. Continue to alternate sides.
Pack your shirts by
laying them out flat widthwise with the collar against the edge and the
bottom hanging out. The next shirt should have the bottom on the edge and the
collar hanging out. All of your clothing should be layered on top in the same
fashion until you are done.
Fold in the clothing
all together and cinch down the straps. This technique is called bundling and
it really does allow you to fit more into a small space while keeping your
clothes from wrinkling. Happy travels!
