South Jersey Real Estate Blog

Congrats to the Philadelphia Phillies!

  image credit: mike@bensalem

Let the party begin!

image credit: dollarbilliam

Read full coverage of the Phillies historic win at the Philadelphia Daily News

See more pictures of the Phillies on Flickr

A Look At Mortgage Options In Today's Market

The following is an article via the NJAR

Navigating through the often complex process of obtaining a home mortgage can seem to be one of the most daunting parts of buying a home, especially in these challenging economic times. However, New Jersey residents are now proactively evaluating the effect of economic changes, weighing their mortgage options and exploring assistance programs before they have even begun the search for a home.

New Jersey's lending climate.

For the past several months, news headlines on high foreclosure rates nationwide have dominated the media. Most of these foreclosures were a result of subprime mortgage lending- loans typically granted to individuals with poor credit histories who, as a result of their deficient credit ratings, would not be able to qualify for conventional mortgages. According to recent statements from New Jersey Banking and Insurance Commissioner Steven Goldman, subprime mortgages represent about 10.5 percent of all loans in New Jersey, while nationally, subprime mortgages represent about 12.2 percent of all loans. In the second quarter of 2008, New Jersey had a 17.1 percent delinquent rate of those subprime loans, while nationally, the delinquency rate was 18.2 percent. While current conditions have lead to more home foreclosures and tighter financing guidelines, there are still lending options available to consumers on sound fiscal footing. New Jersey home buyers in good financial standing can take advantage of historically low interest rates, increased loan limits from the Federal Housing Administration (FHA) and statewide mortgage assistance programs.

"There is no question that the process is different than it was two years ago. Purchasing a home may now take a little longer and buyers may have to fill out more paperwork, but it is not an impossible task, especially for those who are well qualified," said 2008 NJAR^® President Drew Fishman, CRS. "Researching all your options may take time but in the end homeownership has a lot of advantages, including many tax benefits."

Marijohn Mazza, a recent home buyer from Spotswood, commented on her experience obtaining a mortgage. "For me, it was a very smooth process and it turned out where my mortgage payment was actually lower than my rent," said Mazza.

Shopping for the right mortgage.

With many different types of loans and lenders out there, education is the best way to begin the process of obtaining a mortgage, even before a property has been selected. There are websites, seminars, financial planners, REALTORS^® and mortgage professionals available to help buyers understand the details of obtaining a mortgage. Buyers can calculate their future mortgage payments through the website http://finance.realtor.com/homefinance/, but should also consider related insurance, taxes, homeowner association fees and other costs rolled into the mortgage payment. Buyers should also compare different sources for mortgages such as direct lenders and mortgage brokers, but when comparing loans between lenders, buyers should take into account more than interest rates. Consumers should also be aware of additional costs such as points, origination charges, administration fees, commitment fees and other processing and closing fees- they could affect how much the loan really costs you.

"REALTORS^® are a wealth of knowledge and may be able to guide consumers to reliable financing institutions and help walk them through their lending options. In the end, it is always best to read over all paperwork carefully and seek out legal advice if necessary to ensure you understand what you're signing will really pay off in the long run. In these times, buyers can't afford to make hasty, uninformed decisions because every penny counts," added Fishman.

Eric Bonham of Blackwood maintained an open dialogue with his REALTOR^® and mortgage company when he recently purchased his home with his girlfriend. "When we found the house, our next call was to the mortgage company to make sure it was in our price range. Our REALTOR^® and loan provider remained in constant contact, keeping us up to speed on the next steps," said Bonham.

Exploring assistance programs.

Buyers, especially those purchasing a home for the first time, should also explore state and federal assistance programs with their REALTOR^®, mortgage lender or broker. As of July 2008, the Housing and Economic Recovery Act created a new, temporary tax credit to provide an incentive for first-time home buyers. The $7,500 credit will be available for the purchase of principal residences on or after April 9, 2008 and before July 1, 2009. The New Jersey Housing and Mortgage Finance Agency (HMFA) also provides a variety of programs and services that can be used by prospective buyers. For example, Live Where You Work (LWYW) is a home mortgage incentive program that provides low-interest mortgage loans to home buyers purchasing homes in towns where they are employed. The Smart Start Program is also available to participants in HMFA's first mortgage home buyer's program for those purchasing homes in Smart Growth areas, which helps families by offering a second mortgage for downpayment and/or closing costs up to four percent.

Kerri Kushner recently utilized a mortgage assistance program when she bought a home in Old Bridge. "Everyone is really surprised that there are programs out there like the Smart Start program, which is what enabled me to purchase a home. It's great especially for first-time buyers to have help in this area and will hopefully get more people excited about buying."

Somerdale NJ Real Estate Market Report

I recently received an email asking how the market looks in Somerdale.  For those not familiar, Somerdale is located in Camden County, NJ.  I decided to post this information here in case others happen to be looking as well.  This information is as of 3rd Quarter 2008 - September. 

Sold Prices

The chart below shows median sale price over the past two years.  As you would expect, you see a downward decline from last year into the summer months of this year.  What did surprise me was that there has now been an upward tick the past couple of months.  Comparing points in time, September 2008 shows a 4% increase from 2006.  In September 2006, the median sale price was $182,650.  2007 it inched up to $187,500 and now sits at $190,000.  I'd be curious to see how this trend plays out with the recent stock market volatility, but this is definitely a sign that things are stabilizing.

Asking Prices

For the most part, asking prices have remained relatively stable as well.  Asking prices continue to hover around $200k.  The last two months we do see a downward trend starting however.  In September the median asking price is $189,900 which is roughly a 5% drop. 

   

I'm sure different people will interpret this data differently however I see the market in Somerdale very stable right now.  Asking prices have inched down as sold prices have inched up and both are almost perfectly in line right now. 

If you have any specific questions, or would like some other data points, please don't hesitate to contact!

Fall colors of South Jersey

I believe one of the best things about living in Southern New Jersey is that you get to experience a little bit of all four seasons.  This time of year the fall colors are all around us.  The leaves are starting to change creating scenic sights everywhere you turn.  I posted some pictures last year and thought it was appropriate to dig out again.  You can click play below to view a slideshow of the pictures...   

Getting your house ready to sell...

Getting your house ready to sell can seem overwhelming, but it doesn't have to be.  Just keep in mind that you're wanting potential buyers to be able to see their own family and possessions in your home. 

In order to do that, your home must have more "blank areas" than usual to allow buyers to imagine their things in your space.  Since you're going to be packing for your move anyway, go ahead and get a start on it now.  Box up out of season clothes to make closets seem more spacious.  Remove family photos so buyers don't feel the house is already "taken".  Give them opportunities to visually place their possessions by having less of your own spread around the house.  Allow your house to still feel comfortable, but never crowded or cluttered. 

Please hit play on the video below for more tips... 

 

For a few hours...

Philadelphia sports fans and area residents finally had a bright spot last night.  Even if it was just for a few hours, we were able to enjoy and not think about all the other things we keep thinking about.

For a few hours - we were able to take our minds off the daily grind

For a few hours - we had an excuse not to care about the presidential race and not watch the debate

For a few hours - we were able to forget about the slumping economy

For a few hours - we didn't care about the stock market

For a few hours - we didn't care about the housing market

For a few hours - we watched the Philadelphia Phillies clinch the National League pennant and head to the World Series for the first time since 1993. 

Some say it's just a game, but for many, it's so much more. 

Congratulations to the Phillies!  And thank you!  I'll be watching again next Wednesday for Game 1 and forgetting everything else...even if it's for just a few hours.

© All rights reserved

Burlington County Real Estate Market Update

Well, the 3rd quarter is in the books.  So how is the real estate market doing right now in Burlington County?  Below is a couple of charts that should summarize all the available data.

First is the median price over the past two years. 
Compared to 2006, prices have dropped about 10%.  Compared to 2007, prices are down about 6%.  

The next graph shows the amount of homes sold over the past two years.  As many are aware, we are way off from two years ago in 2006.  However, when you compare 2007 to 2008, sales are only down 5.5% for September which isn't too bad after the 21% drop from 2006 to 2007.  You have to believe that this is a good sign considering how bad you hear about the market nationally.  

  

So overall prices and home sales have continued to drop, but at a much slower rate then what we've seen in the past.  Also, compared to national news, Burlington County is fairing much better.  This continues to be a buyers market as interest rates continue to stay at low levels.   

Data deemed reliable but not gauranteed.  Information from Prudential Fox & Roach AgentMetrics from 10/13/08