The number of price-reduced homes on the market increased 5.3% in July 2010 as compared to June, according to a monthly review of MLS-listed properties within 26 of the country’s largest housing markets conducted by the national online real estate brokerage ZipRealty. In my experience, Hamilton NJ and Mercer County homesellers followed this trend.
“Home buyers this summer have been on the sidelines, waiting to find deals and bargains; so we’re seeing more sellers slashing their list prices to entice these home shoppers to make an offer,” said Leslie Tyler, vice president of marketing for ZipRealty.
Highlights of ZipRealty’s July survey include:
-More than 45% of “for sale” homes included at least one price reduction—an increase of 2.67% compared to June
-”For sale” prices dropped 2.04%—down to a median of $254,987 across the 26 markets surveyed
-In six major metros, more than one out of two home sellers reduced their list price—Jacksonville, Phoenix, Minneapolis, Orlando, Austin and Chicago
-The metro with the highest percentage of price-reduced “for sale” homes continues to be Jacksonville, Fla., where 54% of all July listings had at least one price reduction
-Denver had the lowest percentage of price-reduced homes on the market in July with 32.5%
-Sellers in California housing markets continue to hold steady with prices, compared to other parts of the country; Los Angeles County (39.4%) and the San Francisco Bay Area (40.9%) had the second and third lowest percentage of reduced listings out of all markets surveyed in July
-Buyers in the San Francisco Bay Area again enjoyed the biggest home price discount in absolute dollars, with a median price reduction of $38,000 in July
-Buyers in Houston, Dallas and Raleigh-Durham found the smallest price reductions, with a median price cut of only $10,000 in each of the three markets
-Markets with the largest median price reduction in absolute dollars were: San Francisco ($38,000), Orange County California ($31,000), San Diego ($31,000), Los Angeles ($29,000), Miami/Ft. Lauderdale/Palm Beach ($27,000).
Personally, many of the homesellers I represent have been required to lower their prices to attract buyers. Inventory remains high, and while rates are attractive to buyers, they can be selective.
Call or email me to find out what your home is worth in today's market in Hamilton or other Mercer County communities.
Joe Giancarli, SA
Short Sale Specialist
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.newjerseynewhomes.blogspot.com/
www.activerain.com/blogs/josephgiancarli
Thursday, August 19, 2010
Thursday, August 12, 2010
Beware of Short Sale Scams if you are a Hamilton NJ Seller
If you are in a short sale situation in Mercer County, you are under a lot of stress and trying to make good decisions. But if someone approaches you with a "deal" that seems too good to be true, just realize it probably is.
There are dishonest people operating in this environment, trying to take advantage of your financial difficulties, and trying to bilk people out of cash and even out of their homes.
Here are 3 warning signs:
I'm experienced in short sales, working with both buyers and sellers. If you have any questions, just call or email. Don't wait for foreclosure - you have options.
Joe Giancarli, SA
Real Estate Advisor
Short Sale Specialist
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.newjerseynewhomes.blogspot.com/
www.activerain.com/blogs/josephgiancarli
There are dishonest people operating in this environment, trying to take advantage of your financial difficulties, and trying to bilk people out of cash and even out of their homes.
Here are 3 warning signs:
- Realtor offering to help for a fee or other financial arrangement
- If someone wants you to sign over your home for the promise of getting you out of the situation
- If someone asks for a fee upfront to guide you through the transaction
I'm experienced in short sales, working with both buyers and sellers. If you have any questions, just call or email. Don't wait for foreclosure - you have options.
Joe Giancarli, SA
Real Estate Advisor
Short Sale Specialist
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.newjerseynewhomes.blogspot.com/
www.activerain.com/blogs/josephgiancarli
Thursday, August 5, 2010
Why Your Loan Request to Buy a Home in Hamilton, NJ may be Denied
Mortgage lenders and the laws governing their practices have changed drastically in the last couple of years, and for good reason. Their excesses and shoddy practices, if not illegal dealings, are well known now to the home buying public. One of the end results is that mortgages are not as easy to obtain as they were at the peak of the housing bubble. Today, banks are making sure they don’t make the same mistakes, so loan underwriting standards have become more stringent than ever before.
According to a recent Federal Reserve study, it was found that about 75% of the banks surveyed indicated they had tightened their lending standards for prime, subprime and commercial mortgages. That was up from about 60% in the previous survey. With this sharp increase in lending standards, borrowers are being turned down for real estate loans at increasing rates.
As reported by RisMedia.com, here are the top 7 reasons banks are denying home loan requests.
1. Poor credit - even with a large down payment, and even the FHA requires at least a credit score now of 693, higher than the national average.
2. Insufficient liquidity - 20-30% down payment required for most banks.
3. Lack of income - with proof for the last 2-5 years of income, regardless of credit score or down payment.
4. Lying on the application.
5. Debt - must not be excessive and debt-to-income ratios must meet stricter guidelines.
6. Unemployment - borrower must show at least 2 years of stable work history.
7. Self-employment - makes it much harder now to be approved.
Home buyers across the country are realizing quickly that reputable credit and stable income aren’t always enough in qualifying for a loan through a traditional bank. If you want to purchase a home in Hamilton, or other communities in Mercer and surrounding counties, contact me for referrals to reputable and experienced local lenders. Let's work together to find a way for you to purchase a New Jersey home.
Joe Giancarli, SA
Real Estate Advisor
Short Sale Specialist
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.newjerseynewhomes.blogspot.com/
www.activerain.com/blogs/josephgiancarli
According to a recent Federal Reserve study, it was found that about 75% of the banks surveyed indicated they had tightened their lending standards for prime, subprime and commercial mortgages. That was up from about 60% in the previous survey. With this sharp increase in lending standards, borrowers are being turned down for real estate loans at increasing rates.
As reported by RisMedia.com, here are the top 7 reasons banks are denying home loan requests.
1. Poor credit - even with a large down payment, and even the FHA requires at least a credit score now of 693, higher than the national average.
2. Insufficient liquidity - 20-30% down payment required for most banks.
3. Lack of income - with proof for the last 2-5 years of income, regardless of credit score or down payment.
4. Lying on the application.
5. Debt - must not be excessive and debt-to-income ratios must meet stricter guidelines.
6. Unemployment - borrower must show at least 2 years of stable work history.
7. Self-employment - makes it much harder now to be approved.
Home buyers across the country are realizing quickly that reputable credit and stable income aren’t always enough in qualifying for a loan through a traditional bank. If you want to purchase a home in Hamilton, or other communities in Mercer and surrounding counties, contact me for referrals to reputable and experienced local lenders. Let's work together to find a way for you to purchase a New Jersey home.
Joe Giancarli, SA
Real Estate Advisor
Short Sale Specialist
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.newjerseynewhomes.blogspot.com/
www.activerain.com/blogs/josephgiancarli
Seller Incentives not as Common with Hamilton, NJ Sellers
In years past, New Jersey sellers used incentives like cash enticements were the norm, in addition to free cars, big-screen TVs and stainless appliances at closing. But after nearly a year and a half of a government tax credit program, sellers have scaled back on marketing gimmicks and buyer incentives, largely in an effort to limit their losses. The government tax credit was a particularly good deal for cash-strapped buyers and sellers because it wasn’t tied to the value of the house and it arrived in the form of a check with few restrictions on how it could be spent.
Meanwhile, new rules aimed at reducing the risk of mortgage defaults have made many once-common incentives illegal, so many sellers are simply resorting to one of the oldest tricks in the book: dropping the price. In short sale situations, which are unfortunately too common in Mercer County, price is the one and only incentive available to most sellers.
Buyers today have access to more information about the market than ever before, so competitive pricing is the best way to attract attention. In addition, buyers are worried about the economy and their jobs, and have focused on getting the best price—and the lowest house payment—rather than incentives. A sign of the times, many buyers are making decisions based on the assumption that someone in their family might lose their job, and the mortgage payment will still need to be paid.
As posted on RisMedia.com, "Perhaps the biggest reason for the decline in seller incentives comes from the mortgage industry itself. In an effort to reduce defaults, the government has cracked down on all forms of seller incentives. New rules are designed to eliminate any exchange of cash or property before and after a closing that might affect how much equity a buyer has in their new home. That’s an about-face from a time when underwriting standards were much less stringent and cash-back signing bonuses and other perks were a common way to help push buyers over the fence. The goal now is to maximize a buyer’s investment in the hopes that they’ll be less likely to walk away from their obligation."
Current government loan guidelines limit seller contributions—usually in the form of closing costs—on conventional mortgages to 3% of the purchase price; FHA loans allow a 6% contribution, but that’s going to be reduced to 3% during the next few months. Lenders say that losses are mounting on mortgages in which appraisers failed to discover—or sellers failed to disclose—incentives that were never deducted from the sale price of the house. That’s led to improperly priced loans and inaccuracies in valuations. Already Fannie Mae and Freddie Mac are asking lenders to repurchase billions of dollars in improperly underwritten mortgages, including some in which enticements weren’t properly disclosed.
RisMedia concludes,
"Sales without incentives: here’s what works best today:
Joe Giancarli, SA
Real Estate Advisor
Short Sale Specialist
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.newjerseynewhomes.blogspot.com/
www.activerain.com/blogs/josephgiancarli
(c) 2010, Star Tribune (Minneapolis)
Meanwhile, new rules aimed at reducing the risk of mortgage defaults have made many once-common incentives illegal, so many sellers are simply resorting to one of the oldest tricks in the book: dropping the price. In short sale situations, which are unfortunately too common in Mercer County, price is the one and only incentive available to most sellers.
Buyers today have access to more information about the market than ever before, so competitive pricing is the best way to attract attention. In addition, buyers are worried about the economy and their jobs, and have focused on getting the best price—and the lowest house payment—rather than incentives. A sign of the times, many buyers are making decisions based on the assumption that someone in their family might lose their job, and the mortgage payment will still need to be paid.
As posted on RisMedia.com, "Perhaps the biggest reason for the decline in seller incentives comes from the mortgage industry itself. In an effort to reduce defaults, the government has cracked down on all forms of seller incentives. New rules are designed to eliminate any exchange of cash or property before and after a closing that might affect how much equity a buyer has in their new home. That’s an about-face from a time when underwriting standards were much less stringent and cash-back signing bonuses and other perks were a common way to help push buyers over the fence. The goal now is to maximize a buyer’s investment in the hopes that they’ll be less likely to walk away from their obligation."
Current government loan guidelines limit seller contributions—usually in the form of closing costs—on conventional mortgages to 3% of the purchase price; FHA loans allow a 6% contribution, but that’s going to be reduced to 3% during the next few months. Lenders say that losses are mounting on mortgages in which appraisers failed to discover—or sellers failed to disclose—incentives that were never deducted from the sale price of the house. That’s led to improperly priced loans and inaccuracies in valuations. Already Fannie Mae and Freddie Mac are asking lenders to repurchase billions of dollars in improperly underwritten mortgages, including some in which enticements weren’t properly disclosed.
RisMedia concludes,
"Sales without incentives: here’s what works best today:
- Price it right. Buyers have access to lots of data, and they’ll know if your house is too expensive.
- Offer to pay some of the buyer’s closing costs.
- Maximize exposure. Saturate the Internet and all forms of social media with your listing.
- Use great photos, not good ones. Make sure your house makes a great first impression.
- Make it sing. Listing information must be complete and well-written.
- Curb appeal matters. Spend a little money on flowers, new plants and fresh paint.
- Inside, your house should look fresh, so make sure the paint, carpeting, light fixtures and appliances are updated and clean.
- De-clutter. Eliminate one-third to two-thirds of your stuff; hire a stager.
- Network. Sales come together because brains understand homes better than computers.
- Be patient. Statistics say that it takes 21 showings, not including open-house traffic, to sell a house."
Joe Giancarli, SA
Real Estate Advisor
Short Sale Specialist
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.newjerseynewhomes.blogspot.com/
www.activerain.com/blogs/josephgiancarli
(c) 2010, Star Tribune (Minneapolis)
Thursday, July 29, 2010
US Home Prices Stay Flat in 2010
According to Standard & Poor's S&P/Case-Shiller Home Price Indices, the annual growth rates in 15 of the 20 MSAs and the 10- and 20-City Composites improved in May compared to those reported for April 2010.
The 10-City Composite is up 5.4% and the 20-City Composite is up 4.6% from where they were in May 2009. While 19 MSAs and both Composites reported positive monthly changes in May over April, only 12 of the MSAs (Metropolitan Sector Areas) and the two Composites saw better month-over-month growth rates in May than those reported in April.
"While May's report on its own looks somewhat positive, a broader look at home price levels over the past year still do not indicate that the housing market is in any form of sustained recovery," says David M. Blitzer, Chairman of the Index Committee at Standard & Poor's. "Since reaching its recent trough in April 2009, the housing market has really only stabilized at this lower level. The two Composites have improved between 5 and 6% since then, but this is no better than the improvement they had registered as of October 2009. The last seven months have basically been flat."
Contact me for a specific analysis of our Hamilton and Mercer County real estate sales figures.
Joe Giancarli
Short Sale Specialist
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.newjerseynewhomes.blogspot.com/
www.activerain.com/blogs/josephgiacarli
(resource: RealEstateChannel.com)
The 10-City Composite is up 5.4% and the 20-City Composite is up 4.6% from where they were in May 2009. While 19 MSAs and both Composites reported positive monthly changes in May over April, only 12 of the MSAs (Metropolitan Sector Areas) and the two Composites saw better month-over-month growth rates in May than those reported in April.
"While May's report on its own looks somewhat positive, a broader look at home price levels over the past year still do not indicate that the housing market is in any form of sustained recovery," says David M. Blitzer, Chairman of the Index Committee at Standard & Poor's. "Since reaching its recent trough in April 2009, the housing market has really only stabilized at this lower level. The two Composites have improved between 5 and 6% since then, but this is no better than the improvement they had registered as of October 2009. The last seven months have basically been flat."
Contact me for a specific analysis of our Hamilton and Mercer County real estate sales figures.
Joe Giancarli
Short Sale Specialist
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.newjerseynewhomes.blogspot.com/
www.activerain.com/blogs/josephgiacarli
(resource: RealEstateChannel.com)
Homeownership Level at 10-Year Low
The homeownership rate fell to 66.9% in the second quarter, down from 67.1% in the first quarter, according to the U.S. Census Bureau. This was the lowest level since 1999.
The homeownership rate reached a record high of 69.2% in the second and fourth quarters of 2004.
Rising foreclosures are driving the decline. A record 4.6% of U.S. mortgages were in foreclosure in the first three months of 2010, the Mortgage Bankers Association reported in May.
I couldn't find information on how this compares to our local figures in Hamilton, NJ. I would suspect we would mirror the numbers, though, because our region also has been hard hit by foreclosures and short sale competition.
Homeownership is still a viable investment in Hamilton and Mercer County - you just have to be careful with the property you choose. Contact me to discuss how to purchase a home.
Joe Giancarli
Short Sales Specialist
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.newjerseynewhomes.blogspot.com/
www.activerain.com/blogspot/josephgiancarli
Source: Bloomberg, Kathleen M. Howley (07/27/2010)
The homeownership rate reached a record high of 69.2% in the second and fourth quarters of 2004.
Rising foreclosures are driving the decline. A record 4.6% of U.S. mortgages were in foreclosure in the first three months of 2010, the Mortgage Bankers Association reported in May.
I couldn't find information on how this compares to our local figures in Hamilton, NJ. I would suspect we would mirror the numbers, though, because our region also has been hard hit by foreclosures and short sale competition.
Homeownership is still a viable investment in Hamilton and Mercer County - you just have to be careful with the property you choose. Contact me to discuss how to purchase a home.
Joe Giancarli
Short Sales Specialist
Real Estate Advisor
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.newjerseynewhomes.blogspot.com/
www.activerain.com/blogspot/josephgiancarli
Source: Bloomberg, Kathleen M. Howley (07/27/2010)
Friday, July 23, 2010
Home Sales Slow but Better than 2009 in US, Hamilton NJ Above Average
With the scheduled closing deadline for the home buyer tax credits, existing-home sales slowed in June but remained at relatively elevated levels, according to the National Association of REALTORS®.
Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, fell 5.1% to a seasonally adjusted annual rate of 5.37 million units in June from 5.66 million in May, but are 9.8% higher than the 4.89 million-unit pace in June 2009.
Lawrence Yun, NAR chief economist, said the market shows uncharacteristic yet understandable swings as buyers responded to the tax credits. “June home sales still reflect a tax credit impact with some sales not closed due to delays, which will show up in the next two months,” he said. “Broadly speaking, sales closed after the home buyer tax credit will be significantly lower compared to the credit-induced spring surge. Only when jobs are created at a sufficient pace will home sales return to sustainable healthy levels.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.74% in June from 4.89% in May; the rate was 5.42% in June 2009.
The national median existing-home price for all housing types was $183,700 in June, which is 1.0% higher than a year ago. Distressed homes were at 32% of sales last month, compared with 31% in May; it was also 31% in June 2009.
Total housing inventory at the end of June rose 2.5% to 3.99 million existing homes available for sale, which represents an 8.9-month supply at the current sales pace, up from an 8.3-month supply in May. “The supply of homes on the market is higher than we’d like to see. But home prices are still holding their ground because prices had already overcorrected in many local markets,” Yun said. Raw unsold inventory remains 12.7% below the record of 4.58 million in July 2008.
Single-family home sales fell 5.6 percent to a seasonally adjusted annual rate of 4.70 million in June from a level of 4.98 million in May, but are 8.5% above the 4.33 million pace in June 2009. The median existing single-family home price was $184,200 in June, up 1.3% from a year ago.
Existing condominium and co-op sales slipped 1.5% to a seasonally adjusted annual rate of 670,000 in June from 680,000 in May, but are 20.5% higher than the 556,000-unit pace in June 2009. The median existing condo price was $180,100 in June, which is 1.4% below a year ago.
Regionally, existing-home sales in the Northeast rose 7.9 percent to an annual level of 960,000 in June and are 17.1% above June 2009. The median price in the Northeast was $244,300, down 1.2 % from a year ago.
Read my Active Rain blog for detailed numbers on our local sales in Hamilton, and other Mercer County areas.
Joe Giancarli, Sales Associate
Real Estate Advisor
jgiancarli@remax.net
609-658-2612
http://www.joegiancarli.com/
http://www.newjerseynewhomes.blogspot.com/
(resource: RealtorMag)
Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, fell 5.1% to a seasonally adjusted annual rate of 5.37 million units in June from 5.66 million in May, but are 9.8% higher than the 4.89 million-unit pace in June 2009.
Lawrence Yun, NAR chief economist, said the market shows uncharacteristic yet understandable swings as buyers responded to the tax credits. “June home sales still reflect a tax credit impact with some sales not closed due to delays, which will show up in the next two months,” he said. “Broadly speaking, sales closed after the home buyer tax credit will be significantly lower compared to the credit-induced spring surge. Only when jobs are created at a sufficient pace will home sales return to sustainable healthy levels.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.74% in June from 4.89% in May; the rate was 5.42% in June 2009.
The national median existing-home price for all housing types was $183,700 in June, which is 1.0% higher than a year ago. Distressed homes were at 32% of sales last month, compared with 31% in May; it was also 31% in June 2009.
Total housing inventory at the end of June rose 2.5% to 3.99 million existing homes available for sale, which represents an 8.9-month supply at the current sales pace, up from an 8.3-month supply in May. “The supply of homes on the market is higher than we’d like to see. But home prices are still holding their ground because prices had already overcorrected in many local markets,” Yun said. Raw unsold inventory remains 12.7% below the record of 4.58 million in July 2008.
Single-family home sales fell 5.6 percent to a seasonally adjusted annual rate of 4.70 million in June from a level of 4.98 million in May, but are 8.5% above the 4.33 million pace in June 2009. The median existing single-family home price was $184,200 in June, up 1.3% from a year ago.
Existing condominium and co-op sales slipped 1.5% to a seasonally adjusted annual rate of 670,000 in June from 680,000 in May, but are 20.5% higher than the 556,000-unit pace in June 2009. The median existing condo price was $180,100 in June, which is 1.4% below a year ago.
Regionally, existing-home sales in the Northeast rose 7.9 percent to an annual level of 960,000 in June and are 17.1% above June 2009. The median price in the Northeast was $244,300, down 1.2 % from a year ago.
Read my Active Rain blog for detailed numbers on our local sales in Hamilton, and other Mercer County areas.
Joe Giancarli, Sales Associate
Real Estate Advisor
jgiancarli@remax.net
609-658-2612
http://www.joegiancarli.com/
http://www.newjerseynewhomes.blogspot.com/
(resource: RealtorMag)
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